Knowing about europa vat can save money for your business

If you want to import goods and services into 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 cost of your imported products while also be able to charge the correct vat rate when you sell them in local markets.

Most countries within the EU have shifted over to vat and this has helped achieve uniformity in cross-country imports and exports. It has 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 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 along with the vat rates.

However, before you start issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For example, in the UK 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 need to contact the hmrc vat department and can even use their vat online services to fill up the vat form to apply for vat registration. Once your business gets the necessary registration then you can charge vat rates as prescribed by the department through a vat invoice that mentions your unique vat number.

You can import goods and services from several europa vat countries including Sweden, UK, France, Germany, Greece, Spain, Italy, Poland, and many more. 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 standard vat rate that 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 and so might the language in each vat invoice but the formula for calculating vat remains the 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 help you in filing regular vat returns and applying for vat refunds in the country of origin so as 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 can also cross-check the validity of their vat numbers by using the internet. 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 save you a lot of hassle and money while also keeping you safe 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 start a business in any EU country that has embraced vat then you should first check the europa vat list before you start importing products or services from such countries.