Starting a business that needs to import services or goods into the UK can be tough in these competitive times but understanding the number of eu countries which follow vat can help save money. You may definitely be in a position to track tax systems that are similar to your own while also claiming vat refunds for previously paid vat in other countries.
There are many countries in the eu which adhere to the system of value-added tax. Even though the language employed in the vat invoice might differ along with vat rates, the system followed is virtually exactly the same. This list of countries within the EU which have adopted the system of vat are Estonia, Denmark, Bulgaria, Ireland, Latvia, Poland, Spain, Italy, Luxembourg, Belgium, Hungary, Slovak Republic, Czech Republic, Portugal, Sweden, Finland, Slovenia, Austria, Netherlands, Greece, Germany, France, Romania, Malta, Lithuania, and Cyprus. Some territories in this particular list of eu countries have however opted to stay out from the vat gambit. You can visit the hmrc vat or hm revenue and customs web site to find out about such territories check vat number.
One major advantage that you have when importing goods from such eu countries is that any vat that you might have paid in the particular country can be refunded to your account by that country once you file for a vat reclaim. This process can be handled by a professional vat agent who has offices in the United Kingdom as well as in other countries from where your imports take place. Moreover, if you have attended trade shows inside a eu country and also have paid vat for the same then such vat amounts may also be recovered back. This vat refund can surely help shore increase business net profit while suitably lowering your product costs.
If you hire a specialist vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates and also file your vat returns in the stipulated time frame. Vat rates in the United Kingdom range from 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific services and products. There’s also specific services and products which are vat exempt. The hmrc website offers the detailed set of such products and services that are split up into 14,000 classifications.
In order to claim a vat refund you will have to preserve and submit all original vat documents including your vat certificate too. While procedures and language in several countries might pose problems, a vat agent amply trained in various vat systems must be able to recover your hard earned cash back into your bank account. There are also different time limits in different eu countries for submitting a vat reclaim and therefore having an in-depth knowledge of eu vat and uk vat rules will certainly provide a distinct advantage to you and your business vat validation.
If you want to import services or goods into the UK then opting for eu countries that follow vat would offer several distinct advantages. Having the list of eu countries that follow vat will help save money as well as offer simplicity of operation as the system for paying and collecting vat would be the same in most these countries.