Starting a business that is going to import services or goods into the UK can be tough during these competitive times but understanding the number of eu countries that follow vat may help save money. You will definitely be able to track tax systems which are a lot like your while claiming vat refunds for previously paid vat in other countries.
There are many countries from the eu that also follow the system of vat. Although the language employed in the vat invoice might differ in addition to vat rates, the system followed is virtually vatcheck 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 list of eu countries have however opted to stay out of the vat gambit. You can go to the hmrc vat or hm revenue and customs website to read about such territories.
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 may be refunded to you by that country when you apply for a vat reclaim. This process can be handled by a professional vat agent that has offices in the UK as well as in other countries from where your imports come about. In addition, should you have attended trade shows in 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 up your business net profit while suitably cutting your product costs.
Should you hire an expert vat, customs duties, and excise duties agent then that agent will also help calculate sales vat rates as well as file your vat returns within 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 products and services. There are also specific services and products which are vat exempt. The hmrc website provides the detailed list of such services and products which 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 together with your vat certificate too. While procedures and language in various countries might pose a problem, a vat agent amply trained in several vat systems should be able to recover your hard earned money back into your bank account. Additionally, there are different time limits within eu countries for submitting a vat reclaim and therefore having an in-depth understanding of eu vat and uk vat rules will certainly provide a distinct benefit to both you and your business.
If you want to import goods or services to the UK then choosing eu countries that follow vat would offer several distinct advantages. Having the list of eu countries that follow vat can certainly help reduce costs as well as offer ease of operation as the system for paying and collecting vat would be the same in most these countries.