If you want to import products or services to your own country that follows vat or value added tax system then being aware of europa vat can save money in your business. You’ll be able to accurately calculate the buying price of your imported products whilst be able to charge the appropriate vat rate when you sell them in local markets.
Most countries within the EU have shifted to vat and this has helped achieve uniformity in cross-country imports and exports https://vatvalidation.com. It’s also allowed businesses to go in for vat refunds on imports where vat was already paid in the original country of export. If you too plan to import goods where vat has already been paid then you too can 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 begin issuing vat invoices to your clients, you will have to apply for vat registration in your own country. For example, in the United Kingdom you will get vat registered once your taxable sale during the last 12 months touches £70,000, which is called 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 you’ll be able to charge vat rates as prescribed by the department by way of a vat invoice that mentions your unique vat number.
You can 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 essential principle of taxes continues to be 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 text 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 should enroll the expertise of an expert vat and import agent so that your products or 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 getting vat refunds in the nation of origin so as to return the doubly-charged tax amount back to your coffers.
In case you want to deal with other business in other europa countries that follow vat then you can also cross-check the validity of the vat numbers by utilizing the internet web site. There are several websites that allow you to input the country code and the vat number before informing you if the vat number is still valid. This move can help you save lots of hassle and funds whilst keeping you safe from unscrupulous businesses and folks.
Conducting business with vat friendly eu countries will ensure 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 that has embraced vat then you should first look into the europa vat list before you start importing services or products from such countries.
