If you want to import goods and services into your own country that follows vat or value added tax system then being aware of europa vat will save money in your business. You’ll be able to accurately calculate the buying price of your imported products whilst have the ability to charge the appropriate vat rate when you sell them in local markets.
Most countries in the EU have shifted to vat and this helps achieve uniformity in cross-country imports and exports. It’s also allowed businesses to go in for vat refunds on imports where vat was already paid in the original country of export. In case you too plan to import goods where vat has already been paid then you definitely can also apply for vat reclaim in the country of origin with supporting documents that show the local sales along with the vat rates.
However, before you begin issuing vat invoices to your clients, you will need to make an application for vat registration in your own country. For example, in the UK you will get vat registered when your taxable sale during the last 12 months touches £70,000, which is known as vatverification the vat threshold. You will have to contact the hmrc vat department and may even use their vat online services to fill the vat form to apply for vat registration. When your business gets the necessary registration you’ll be able to charge vat rates as prescribed by the department through a vat invoice that mentions your distinct vat number.
You may import services and goods from many europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many others. Although customs duties, excise duties and import vat might differ in each eu country, the basic principle of taxes continues to be same. All vat friendly countries have a very standard vat rate that is between 15-25%, a particular low vat rate between 1-6% and vat exempt items or services where no vat is charged. The rates might differ so might the text in each vat invoice but the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules might be a bit complicated to decipher, you should enroll the expertise of a professional vat and import agent so that your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able to assist you in filing regular vat returns and applying for vat refunds in the nation of origin in order to return the doubly-charged tax amount back to your coffers.
In case you want to deal with other business in other europa countries that follow vat then you could also cross-check the validity of their vat numbers by utilizing the internet. There are several websites that allow you to input the nation code along with the vat number before informing you if your vat number remains to be valid. This move can help you save lots of hassle and money whilst keeping you safe from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you’re going to start a business in a EU country which has embraced vat then you definitely should first look into the europa vat list before you begin importing products or services from such countries.