Starting a business that needs to import services or goods to the UK can be tough in these competitive times but understanding the number of eu countries that follow vat can help reduce costs. You will easily be in a position to track tax systems that are a lot like your while claiming vat refunds for previously paid vat in other countries.
There are many countries in the eu which follow the system of vat. Even though the language used in the vat invoice might differ in addition to vat rates, the system followed is almost exactly the same. This list of countries in the EU which have adopted the system of vat are Estonia, Denmark, Bulgaria, Ireland, Latvia, Poland, Spain, Italy, Luxembourg, Belgium, Hungary, Slovak Republic, Czech Republic, Portugal, Sweden, Finland, Slovenia, Austria, Netherlands, Greece, Germany, France, Romania, Malta, Lithuania, and Cyprus. Some territories in this particular set of eu countries have however opted to remain out of the vat gambit. You can visit the hmrc vat or hm revenue and customs website to read about such territories vat verification.
One major advantage that you have when importing goods from such eu countries is that any vat that you might have paid in a particular country may be refunded to your account by that country once you file for a vat reclaim. This process can be handled by an expert vat agent who has offices in the United Kingdom along with other countries from which your imports take place. In addition, if you have attended trade shows in a eu country and have paid vat for the same then such vat amounts can also be recovered back. This vat refund can surely help shore up your business bottom line while suitably lowering your product costs.
Should you hire an expert vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates and also file your vat returns in the stipulated time period. Vat rates in the UK range from 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific products and services. There’s also specific services and products that are vat exempt. The hmrc website offers the detailed set of such products and services which are split up into 14,000 classifications.
In order to claim a vat refund you will need to preserve and submit all original vat documents together with your vat certificate too. While procedures and language in various countries might pose a problem, a vat agent amply trained in several vat systems should be able to recover your hard earned money back into your account. There are also different deadlines in different eu countries for submitting a vat reclaim and therefore having an in-depth knowledge of eu vat and uk vat rules will definitely provide a distinct advantage to both you and your business vies.
If you want to import services or goods into the UK then choosing eu countries that follow vat would offer several distinct advantages. Knowing the list of eu countries that follow vat will help save money and also offer ease of operation because the system for paying and collecting vat will be the same in all these countries.