Starting a business that is going to import goods or services to the UK can be tough in these competitive times but knowing the range of eu countries that observe vat may help reduce costs. You may easily be able to track tax systems that are similar to your own while
claiming vat refunds for previously paid vat in other countries.
There are many countries in the eu that also adhere to 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 the same. The list of countries in 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 set of eu countries have however opted to stay out of the vat gambit. You can go to the hmrc vat or hm revenue and customs website to find out about such territories.
One major advantage that you have when importing goods from such eu countries is that any vat that you might have paid in a particular country can be refunded to you by that country once you file for a vat reclaim. This process can be handled by an expert vat agent who has offices in the UK along with other countries from where your imports take place. In addition, if you have attended trade events inside a eu country and have paid vat for the very same then such vat amounts can also be recovered back. This vat refund can surely help shore up your business bottom line while suitably lowering your product costs.
Should you hire an expert vat, customs duties, and excise duties agent then that agent can also help calculate sales vat rates and also file your vat returns in the stipulated time period. Vat rates in the UK range between 17.5% for standard vat rates to 5% for reduced vat rates to zero vat rates for specific products and services. There's also specific products and services that are vat exempt. The hmrc website provides a detailed set of such services and products that are split up into 14,000 classifications.
In order to claim a vat refund you will need to preserve and submit all original vat documents including your vat certificate too. While procedures and language in several countries might pose problems, a vat agent well versed in various vat systems should be able to recover your hard earned money back to your account. There are also different deadlines 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 certainly provide a distinct benefit to you and your business.
If you wish to import services or goods to the UK then choosing eu countries that follow vat would offer several distinct advantages. Having the listing of eu countries that follow vat can certainly help save money as well as offer simplicity of operation because the system for paying and collecting vat will be the same in most these countries.