Understanding europa vat can help to save money in your business

If you wish to import products or services into your own country that follows vat or value added tax system then knowing about europa vat can save money in your business.

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You will be able to accurately calculate the buying price of your imported products whilst be able to charge the correct vat rate when you sell them in local markets.

Most countries in the EU have shifted over to vat which 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. If you too intend to import goods where vat has already been paid then you definitely 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 begin issuing vat invoices to your clients, you will need to apply for vat registration in your own country. For instance, in the United Kingdom you can 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 even use their vat online services to fill up the vat form to get vat registration. When your business gets 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 distinct vat number.

You may 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 essential principle of taxes continues to be same. All vat friendly countries have a very 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 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 expertise of an expert vat and import agent so that your goods and services are placed within the appropriate classification as deemed fit by relevant tax authorities. Your agent should also have the ability to assist 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 to 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 their vat numbers by utilizing the internet. There are several websites that allow you to input the country code along with 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 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 due to the common platform of vat. If you plan to start an enterprise in any EU country that has embraced vat then you definitely should first check the europa vat list before you begin importing products or services from such countries.