If you want to import products or services to your own country that follows vat or value added tax system then knowing about europa vat can save money for your business.
You will be able to accurately calculate the buying price of your imported products whilst have the ability to charge the correct vat rate whenever you sell them in local markets.
Most countries within the EU have shifted to vat and this helps 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 plan to import goods where vat was already paid then you too can make an application for vat reclaim in the country of origin with supporting documents that show your 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 example, in the United Kingdom you can get vat registered once your taxable sale in the last 12 months touches £70,000, which is known as the vat threshold. You will have 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 has the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your distinct vat number.
You may import services and goods from many 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 that 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 text 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 should enroll the services of an expert vat and import agent so that your goods and services are placed in the appropriate classification as deemed fit by relevant tax authorities. Your agent should also be able to assist you in filing regular vat returns and getting vat refunds in the country of origin so as to return the doubly-charged tax amount back to 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 many websites that allow you to input the nation code and the vat number before informing you if the vat number remains to be valid. This move can help you save a lot of hassle and funds whilst protecting you from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to start a business in any EU country that has embraced vat then you should first look into the europa vat list before you begin importing services or products from such countries.