Understanding europa vat can help to save money in your business

If you want to import goods and services to your own country that follows vat or value added tax system then being aware of europa vat can save money for your business.

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You’ll be able to accurately calculate the cost 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. 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. If you too plan 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 the 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 will get vat registered when your taxable sale during the last Twelve months touches £70,000, which is called the vat threshold. You will need to contact the hmrc vat department and can even 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 by way of 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 others. Although customs duties, excise duties and import vat might differ in each eu country, the basic principle of taxes continues to be same. All vat friendly countries have a standard vat rate which is between 15-25%, a special low vat rate between 1-6% and vat exempt items or services where no vat is charged. The rates might differ so might the language in each vat invoice however 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 that your products or services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent must also be able to help you in filing regular vat returns and applying for vat refunds in the nation of origin in order to return the doubly-charged tax amount back into your coffers.

In case you want to deal with other business in other europa countries that follow vat then you could also cross-check the validity of the vat numbers by utilizing the internet. There are many websites that permit you to input the nation code along with the vat number before informing you if your vat number is still valid. This move can help you save a lot of hassle and funds while also protecting you from unscrupulous businesses and individuals.

Conducting business with vat friendly eu countries will ensure that your paperwork proceeds in a seamless manner thanks to the common platform of vat. If you plan to begin an enterprise in any EU country that has embraced vat then you should first look into the europa vat list before you start importing products or services from such countries.