Starting an organization that is going to import services or goods into the UK can be difficult during these competitive times but knowing the range of eu countries which observe vat may help reduce costs. You may easily be in a position to track tax systems that are similar to your while also claiming vat refunds for previously paid vat in other countries.
There are several countries from the eu which follow the system of value-added tax. Even though the language used in the vat invoice might differ along with vat rates, the system followed is almost exactly the same. This list of countries within 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 list of eu countries have however opted to remain out from the vat gambit. You can visit the hmrc vat or hm revenue and customs website to find out about such territories vat verification.
One major advantage you have when importing goods from such eu countries is that any vat that you might have paid in the particular country can be refunded to you by that country when you file for a vat reclaim. This process can be handled by an expert vat agent who has offices in the United Kingdom as well as in other countries from where your imports take place. Moreover, should you have attended trade shows inside a eu country and also have paid vat for the same then such vat amounts may also be recovered back. This vat refund can surely help shore up your business net profit while suitably lowering your product costs.
Should you hire a specialist vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates and also file your vat returns within 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 services and products. There’s also specific services and products that are vat exempt. The hmrc website provides a detailed set of such products and services that are put into 14,000 classifications.
In order to claim a vat refund you will have 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 various vat systems should be able to recover your hard earned cash back into your account. Additionally, there are different time limits in different eu countries for filing for a vat reclaim and therefore having an in-depth knowledge of eu vat and uk vat rules will definitely offer a distinct benefit to both you and your business vat validation.
If you want to import goods or services to the UK then opting for eu countries that follow vat would offer several distinct advantages. Having the list of eu countries that follow vat can certainly help reduce costs as well as offer ease of operation as the system for paying and collecting vat will be the same in most these countries.