If you want to import goods and services to your own country that follows vat or value added tax system then knowing about europa vat can save money in your business.
You will be able to accurately calculate the cost of your imported products while also be able to charge the appropriate vat rate when you sell them in local markets.
Most countries within the EU have shifted over to vat and this 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 has already been paid in the original country of export. In case you too intend to import goods where vat was already paid then you can also apply for vat reclaim in the country of origin with supporting documents that show your local sales together with the vat rates.
However, before you start issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For example, in the UK you will get vat registered once your taxable sale in the last 12 months touches £70,000, which is called the vat threshold. You will need to contact the hmrc vat department and can use their vat online services to fill the vat form to apply for vat registration. When your business gets the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your unique vat number.
You can import goods and services from many europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many more. 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 and so might the language in each vat invoice but the formula for calculating vat remains the same in all these countries.
Since customs, excise and vat rules might be a bit complicated to decipher, you need to enroll the services of a professional vat and import agent so your goods and services are put 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 applying for vat refunds in the country of origin in order to return the doubly-charged tax amount back into your coffers.
In case you want to handle other business in other europa countries that follow vat then you could also cross-check the validity of their vat numbers by using the internet. There are several websites that allow you to input the country code along with the vat number before informing you if the vat number is still valid. This move can save you lots of hassle and funds while also keeping you safe from unscrupulous businesses and folks.
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’re going to begin a business in a EU country which has embraced vat then you definitely should first check the europa vat list before you begin importing products or services from such countries.