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 will be able to accurately calculate the buying price of your imported products whilst be able to charge the appropriate vat rate whenever you sell them in local markets.
Most countries in the EU have shifted over to vat which has helped 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. If you too intend to import goods where vat was already paid then you definitely too can 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 have to make an application for vat registration in your own country. For instance, in the United Kingdom you will get vat registered when your taxable sale in the last Twelve months touches £70,000, which is called vatverification.com the vat threshold. You will need to contact the hmrc vat department and can even use their vat online services to fill the vat form to apply for vat registration. Once your business has the necessary registration you’ll be able to charge vat rates as prescribed by the department by way of a vat invoice that mentions your distinct vat number.
You may import services and goods from several 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 remains the same. All vat friendly countries have a very standard vat rate which 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 language in each vat invoice but the formula for calculating vat continues to be same in all these countries.
Since customs, excise and vat rules can be a bit complicated to decipher, you need to enroll the expertise of a professional vat and import agent so that your goods and services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able to help you in filing regular vat returns and getting vat refunds in the nation of origin so as to return the doubly-charged tax amount back into 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 the vat numbers by utilizing the internet. There are several websites that permit you to input the country code and the vat number before informing you if the vat number is still valid. This move can help you save lots of hassle and money whilst protecting you from unscrupulous businesses and individuals.
Conducting business with vat friendly eu countries will guarantee that your paperwork proceeds in a seamless manner due to the common platform of vat. If you plan to start a business in a EU country that has embraced vat then you definitely should first check the europa vat list before you start importing services or products from such countries.