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 stay within the same taxation system,
go in for vat refunds plus be beneficial if you are planning to re-export something back into those EU countries.
If your trading business is based in the UK then it is extremely important to know about fellow EU countries which follow vat simply because this will continue uniformity in taxation and simplify your paperwork whenever you import items from such countries. You’ll of course have to pay customs duties, excise duties or import vat on your goods or services according to their classification as deemed by the UK revenue and customs department or hmrc vat department.
For those who have already paid vat in any 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 begin selling your goods and charging vat on the same you will need to become a vat registered trader. The hmrc vat department offers several vat online services and you can simply download the right vat form to finish the vat registration process, even though you will have to submit documentary proof too. Once you get your unique vat no you may issue a vat invoice against each sale and charge the related vat rate to your 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 do not follow vat. Each EU country has been assigned a particular code and follows a particular vat number format. Vat invoices are also prepared in each country in its own language. For example, Poland issues a faktura vat, which is their version of the vat invoice.
If you wish to reclaim vat paid in a foreign country then your simplest way forward should be to hire a vat agent that is an expert in uk vat as well as eu vat rules. This will likely enable 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. It is also important to study various classifications in customs, excise and vat duties and also learn more about vat exempt items so your product costs are reduced in a legal manner. While duty rates might be different within these eu countries, the fact they all follow vat will certainly reduce paperwork and help you with your cost calculations.
Most eu countries follow vat and this also factor ought to be noted if you’re going to import goods or services to the UK or perhaps any other vat friendly EU country. The eu countries list already mentioned should allow you to identify countries that follow vat and allow you to import products while avoiding the problem of double taxation by allowing you to definitely reclaim vat back.