If you wish to import services or goods from EU States or countries then you should first get the eu countries list that follow the system of vat or value added tax. This should help you to remain within the same taxation system,
go in for vat refunds and also be beneficial if you are planning to re-export some material back into those EU countries.
In case your trading business is located in the UK then it is extremely important to know about fellow EU countries that also follow vat since this will continue uniformity in taxation and simplify your paperwork whenever you import items from such countries. You will obviously need to pay customs duties, excise duties or import vat for your services or goods based on their classification as deemed by the UK revenue and customs department or hmrc vat department.
For those who have already paid vat in most of the eu countries which are mentioned from the list you’ll be able to go for vat reclaim as soon as you sell goods in the local market at prevailing vat rates. However, before you start selling your goods and charging vat on the very same you will need to become a vat registered trader. The hmrc vat department offers several vat online services and you could simply download the appropriate vat form to finish the vat registration process, even though you will need to submit documentary proof too. As soon as you get the unique vat no you may issue a vat invoice against each sale and charge the related vat rate to the clients in the local market.
The hmrc website features the eu countries list that follows the system of vat. These countries are Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, and Sweden. However, there are a few specific territories within some countries that don’t follow vat. Each EU country has been assigned a particular code and follows a specific vat number format. Vat invoices may also be prepared in each country in its own language. For example, Poland issues a faktura vat, that is their version of the vat invoice.
If you want to reclaim vat paid in a foreign country then your simplest way forward would be to hire a vat agent that’s an expert in uk vat in addition to eu vat rules. This will likely allow you to file your vat returns correctly and within the stipulated time frame while also doing exactly the same when claiming vat refunds in the country of origin. Additionally it is important to study various classifications in customs, excise and vat duties as well as find out about vat exempt items so your product cost is reduced in a legal manner. While duty rates might be different within these eu countries, the fact they all follow vat will surely reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this factor ought to be noted if you plan to import services or goods to the UK or perhaps some other vat friendly EU country. The eu countries list mentioned above should help you to identify countries that follow vat and allow you to import products while avoiding the problem of double taxation by permitting you to definitely reclaim vat back.