Most countries in the European Union have adopted vat so as to conduct business under a common tax umbrella. The European Commission that monitors vat and issues vat rules and directives has implemented vat in a bid to create a common market, and to stop tax leakages. However, each country that follows the system of vat such as Poland, Portugal, Austria, Germany, Spain, Italy, Greece, the UK, etc interpret eu vat rules in their own way while remaining within the set boundaries. All eu countries can also set their own vat rates within the specified vat bracket as indicated by the European Commission. For example, standard vat rates have to be in the range of 15% to 25%. However, most countries also have reduced vat rates while some also have goods and services that attract zero vat rates or are totally vat exempt.

If you are a trader in the UK then you will need to follow uk vat once you enter into the system of vat. However, in order to receive your own vat certificate with your vat number, you will need to turn into a vat registered trader. You can do so if your taxable sales touch the vat threshold limit of £70,000 or are expected to touch this figure within the next 30 days, or can even do so when you have just started a new business. Once your vat registration process is complete then you will need to issue vat invoices, file vat returns and can even file for vat refunds if vat has already been paid on goods and services before it is imported into the UK. However, since filing for vat reclaim is a cumbersome process you should hire a vat agent to handle refunds and in fact all your vat matters even as you try to learn more about what is vat with each passing day.

You will also need to learn all about various vat rates applicable on goods or services that you purchase and sell. In the UK, it is HM Revenue and Customs or hmrc that has slotted goods and services into 14,000 classifications. You will thus need to apply the correct rate of vat so as to safely follow all applicable vat rules. You will also need to choose an appropriate vat accounting method and file your vat returns based on the system that you have chosen. Hmrc vat offers several vat online services including vat registration, online vat returns and refunds, and you should certainly use them to save on time and money while also conducting all online vat procedures in a secure manner. You can also opt for vat training to learn all about vat.

Your business will certainly benefit if you have all required knowledge on vat before you incorporate this system in your business. Once you know all about what is vat then you will certainly be able to calculate vat rates accurately, issue vat invoices, file vat returns and get successful vat refunds without any problems.

Vat has been adopted by most countries in the European Union in a bid to construct a single market platform where goods and services can be transported across borders in a transparent manner. Countries such as the UK, Poland, Belgium, Sweden, Italy, Romania, Germany, and many more have shifted over to vat under the guidance of the European Commission. If you too have a business in any of the eu countries that follow vat then you would need to follow eu vat rules along with vat rules issued by the vat department of your own country.

Vat taxes goods and services during each transaction and also allows traders to reclaim previously paid vat. If you are a trader that imports goods or services from another eu country and need to reclaim vat already paid in that country then you can do so by applying for vat refund. However, it is imperative that your supplier provides you with a genuine and valid vat number before exporting the goods into your country. If you are dealing with a new supplier then you should definitely opt for vat validation since the process takes only a few minutes and can certainly save you a lot of time, effort and money in the future.

You can easily visit the official website of the European Commission by following the link http://ec.europa.eu/taxation_customs/vies/vieshome.do. If you are a vat registered trader in the UK then you can also visit the website of hmrc vat or call up the office of HM Revenue and Customs to validate the vat number of your proposed supplier. In case you visit the website then you will need to type in the country code of the supplier followed by the complete vat number. The vat no might only contain numbers or might also contain characters depending on the country where the vat registration of your supplier has been done. You will also need to type in the code of your own country along with your own vat number.

You will receive a confirmation on your computer screen within seconds. You will now be able to find out if the vat number supplied by your supplier is genuine and valid. You can also keep a printout of this confirmation to remain on the safe side. Once your transaction is complete then you can safely file for vat refunds since this validation exercise will ensure that your supplier has a genuine vat certificate in that particular country. You can also check vat numbers of local suppliers if you wish by using this validation facility that anyway is totally free.

If you plan to import goods into a eu country where the system of vat is followed then you need a genuine supplier with a genuine vat number. This will enable you to go in for vat reclaim, which in turn will lower costs. Instead of losing out on vat refund and getting penalized due to your supplier, you should certainly conduct vat validation to safely conduct your business.

Most countries in the European Union are moving towards the concept of a single market under the umbrella of the European Commission that has established eu vat rules for the participating countries. Thus, countries such as the UK, Poland, Sweden, Greece, Spain, Portugal, and many more have adopted the system of vat. In the UK, you will need to follow uk vat rules that have been issued by Her Majesty’s Revenue and Customs department.

Once your taxable sales touch the vat threshold amount of £70,000 in the previous 12 months or is expected to do so in the next 30 days then you will need to apply for vat registration, get your vat certificate and vat number, and turn into a vat registered trader. Once you have entered into the system of vat then you will need to follow specific vat rules issued by hmrc regarding collection and payment of vat, maintaining vat records as well as filing vat returns and while applying for vat refunds. You can also authorise your vat agent or accountant to represent you in the above actions so that you can focus on running your business while leaving the paperwork and vat matters to experts.

In a bid to reduce paper documents, hmrc encourages you to file online vat returns once you turn into a vat registered trader in the UK although you will anyway need to file online returns if your vat exclusive turnover crosses £100,000 or if you have applied for vat registration on or after April 1, 2010. You will most probably need to file vat returns on a quarterly basis although this will depend on your turnover and the vat accounting scheme that you have chosen. You will need to file vat returns even if you opt for the flat vat rate scheme. If you opt to pay vat returns online then you can simply fill up the online vat return form available at the hmrc vat website.

You should make sure that you fill up each box of the return vat form number 100 or 193 whether you fill up the form on paper or electronically. You should make sure to double-check all figures or ask your vat agent to do so before you submit your vat return form to hmrc. In case of any mistake in your vat return, you should remember to inform hmrc immediately so that that mistake can be rectified by making adjustments in your next return. Depending on the severity of the error, you might even have to pay a penalty to hmrc.

Once you are inducted into the system of vat then you will need to follow the system of collecting and paying vat as specified by hmrc. In addition to issuing vat invoices and maintaining vat records as per vat rules, you will also need to fill up the appropriate vat return form at the specified time so as to remain on the right side of the law.

The European Commission has specified several vat rules concerning cross-border refunds of vat by all member eu countries that levy vat in their respective countries. Previously, the system required cumbersome paperwork that used to take a lot of time and energy that dissuaded many traders from filing for vat. This resulted in loss of income for traders as well as boosted up their costs. However, from January 1, 2010, eu vat rules specify that the entire system has been transferred online and if you are a trader with vat registration in the UK then this is definitely good news.

If you have imported goods from a member eu country and have already paid vat in that country then you can definitely file for vat reclaim on that original vat amount. If your employees have visited that country for trade shows and have paid vat tax for such trade shows or for refreshments, dining, traveling, etc then you can also reclaim vat paid on such services provided you meet all the requirements laid down by hmrc.

You can however apply for vat refunds in the UK only if you are not a vat registered trader in the eu country from where you have claimed to have paid vat in the first place. You will also need to prove that you do not reside in that country or have a business place in that country. In addition, you will also need to prove that you do not supply goods or services to the country of origin where vat has already been paid. You can also claim vat back for any capital goods that you have imported for use in your business.

You will need to make your vat refund claims within 9 months after the end of any calendar year in which you might have originally paid vat. Since the process of successfully receiving the vat amount of each claim takes between 4 to 8 months, you should definitely hire an expert vat agent to file vat claims on your behalf and follow them up until the money is received back into you bank account. You can simply pay a fixed percentage of all successful vat reclaims to your vat agent to free yourself of any financial burden and keep motivation levels high at all times. The closure of each successful vat claim will surely provide your business with some much-needed cash inflow while lowering your product costs at the same time.

Each eu country that follows vat has provisions for refunding vat on imports if it has already been paid once in the country of origin. If you are a vat registered trader in the UK then you too would have a chance to reclaim paid vat by following proper online procedures. Do not lose out on vat refunds to recover previously paid vat so as to ensure that your business remains competitive and receives vital funds at regular intervals at the same time.

Most European countries have slowly switched over to vat as they want to ensure smoother cross-border trading while boosting revenues at the same time. It is the European Commission that has specified eu vat rules that are applicable on all eu countries that have adopted vat. However, specific vat rates are set up by each eu country including the UK albeit within the vat range specified by the European Commission.

If you are a trader in the UK and have just touched the vat threshold limit in taxable sales then you will need to turn into a vat registered trader and issue vat invoices to your clients. However, before you issue invoices, you will need to know the exact classification of your goods and services as specified by hmrc or Her Majesty’s Revenue and Customs department that handles the vat department in the UK, Northern Ireland, and the Isle of Man. There are around 14,000 classifications specified by hmrc and you will need to check applicable vat rates on each of your sales so that you can collect the correct amount of vat while also filing your vat returns without facing any problems in the future.

There are three basic vat rates applicable in the UK. The standard vat rates are pegged at 17.5% that will increase to 20% from January 4, 2011 onwards. The reduced vat rates applicable on certain goods and services are pegged at 5% while the final vat rates are pegged at zero percent. There are also specific goods and services including postal services, gambling services, etc that are totally vat exempt. While you can claim back standard and reduced vat rates, it is quite difficult to claim back zero vat rates if those goods or services were in another vat rate section previously. It is even more difficult to claim back vat on vat exempt goods and services, while there are still a few classifications that are outside the purview of the vat act.

There are similar vat rates applicable in other eu countries that follow vat too. Thus if you have already paid vat on any goods or services in another country then you can claim that original vat rate back by applying for vat refund. This process could take a long time and it would be advisable to allow your vat agent or consultant to handle the process so that your business costs can be reduced once your vat reclaim is successful. Your vat returns too will need to summarize your sales and purchases done at various vat rates depending on the vat scheme that you have chosen.

Once you turn into a vat registered trader in the UK then it is very important to be sure of the exact vat to be charged on each item of your vat invoice. You should also check your purchase bills to make sure that you are not overcharged by your suppliers. You should certainly check vat rate applicable on each product and service before you issue any invoice for the same since you might have a tough time rectifying your mistake if you end up charging the wrong rate.

For example, if your vat registration is in the UK, which is one of the countries in the eu that follows vat, in addition to Sweden, Italy, Spain, Germany, Greece, etc then you will need to follow uk vat rules that are broadly based on eu vat rules. The EU rules have been formulated by the European Commission that guides all member countries towards a unified system of vat. In the UK, it is Her Majesty’s Revenue and Customs department or hmrc that lays down all vat rules.

All vat rules in the UK are available within the vat guide, which is under reference of Notice 700. You can simply visit the hmrc website and download the entire guide or click on any particular point that requires additional clarification. This guide offers explanations on every aspect of vat including import vat, vat registration, vat number, vat certificate, vat invoice, vat exemption, vat rates, vat returns, vat refunds, and much more. The hmrc vat website also offers various other vat online services including online filing of vat returns and vat refunds along with explanation on customs and excise duties too.

Most other eu countries that follow vat also have their own guides that can help direct new entrants as well as old ones that want to change vat schemes, to take the best possible route. Most countries also come out with amendments in a bid to fine-tune the process of boosting revenues and plugging loopholes in the vat tax system. Various directives also guide taxpayers towards better implementation of the vat act. New notifications such as the change in standard vat rates in the UK from 17.5% to 20% in the year 2011 also helps vat registered traders to get ready to shift over seamlessly to new rates well in advance.

The vat guide can explain in great detail as to what is vat and also guide you on your rights when you come under the system. The guide also explains the rights of vat officers when they arrive at your premises to conduct a vat audit and its implications in case you have willingly or unwillingly avoided payment of vat to hmrc. The UK guide covers vat rules applicable to the UK, Northern Ireland and the Isle of Man. Similarly, other eu countries have certain geographical areas that are included or excluded in the vat rules based on their discretion.

If you are a vat registered trader in the UK or want to turn into one then you should have a guide that can help you to understand all rules and regulations pertaining to vat. You will need to understand all uk vat rules as well as eu vat rules if you plan to import goods and services from EU countries into the UK. In such a case, you should make it a point to first study the vat guide in great detail so that your transition into the system of vat tax does not turn out to be a taxing one.

You will need to be professionally qualified in not only issues connected to uk vat and eu vat but should also possess all necessary qualifications in handling customs and excise duties, personal, small business and corporate finances, and various other finance departments related to vat. This will help you to comprehend and explain all vat issues to your clients before you start handling matters related to vat, and even customs and excise. You will need to communicate regularly with HM Revenue and Customs department or hmrc vat department in the UK and various other vat departments in different eu countries in case your client wishes to file for vat refunds.

In these high-tech times your consultancy will need to be equipped with computers connected to the internet since most vat services offered by hmrc including filing for vat registration, vat returns and vat refunds will completely move online from the current paper format. You should hire expert staff for your vat consultancy firm so that they can handle all outdoor services leaving you free to communicate with your clients and handle their needs. Once a trader wishes to opt for vat registration or is compelled to apply for vat registration after touching £70,000 in taxable sales then you can step into the picture to handle all their vat tax requirements.

Depending on the vat scheme opted by each client, you will also need to file vat returns on a monthly, quarterly or yearly basis. You will also have to calculate the amount of vat to be paid or collected from hmrc while filing these returns. If your clients have already paid vat on goods or services imported from another eu country that follows vat then you can offer them a scheme whereby you can follow up the vat refund on their behalf and take a commission from the vat reclaim amount only if you are successful in getting the vat amount back for them. This move will attract your clients to opt for this process and in turn will reward you as each vat claim gets successfully processed by the relevant vat department.

Turning into a vat registered trader, maintaining vat records and filing vat returns and vat refunds on time is a tedious process, and businesses might simply waste a lot of time in maintaining records instead of running their business. This should be your selling point when you offer your services to your client so that they can focus on increasing their business instead of simply handling vat paperwork. If your services are honest and efficient then your consultancy firm will surely grow by leaps and bounds in the coming years.

Vat is certainly here to stay as it offers governments a chance to increase their revenues and plug tax holes. You too should step into the consultancy market and start your own vat consultancy firm to safely guide traders through the maze of vat rules so that they can concentrate on running their business and leave the rest to your expertise.

As a business you can claim vat back only on goods and services related to your business and not for your personal use. This vat is known as input tax by the HM Revenue and Customs or hmrc department that handles customs, excise and vat departments in the UK. You can reclaim vat charged irrespective of the rates, be it the standard, reduced or zero rate. However, you will usually not be able to claim vat on vat exempt goods apart from certain exceptions.

Since the process of filing for vat refunds is quite complex and time consuming, especially for goods or services imported from other eu countries, you should use the services of an expert vat agent that is totally acquainted with the latest uk vat and eu vat rules. Several agents will charge a fee based on a percentage of the vat reclaim amount after it has been approved and will not charge any fees if the claim does not materialize. This facility should be accepted by you to avoid paying any money from your pocket to your agent since vat claims usually take between 4 to 8 months to come to a successful conclusion.

You will first need to register yourself online at the hmrc vat website if you want to use all vat services provided by the department. Even if you want to file a vat claim for vat paid in a foreign eu country, you will still need to apply for vat reclaim with hmrc first and also provide all necessary vat documents including vat receipts so that your claim can be processed further. Hmrc will forward your application to the mentioned country and you might also need to send additional documents such as your vat certificate along with the original vat invoice, if desired by that country. If all your documents are found to be in order at the first attempt itself, you could receive your vat refund within 4 months, albeit in the currency of the foreign eu country, which can be converted into sterling pounds when you transfer it to your UK bank account.

Reclaiming vat can provide relief to your business by lowering costs and injecting vital funds into your business. If you regularly participate in trade shows in member eu countries and pay vat in those countries, or import goods into the UK where vat has already been paid then you should opt for vat refunds since this move will lower the cost of your goods while allowing you to legally claim doubly paid tax back from the government.

Once you do turn into a vat registered trader in the UK then you should explore all legal means to recover any tax that has already been paid on goods or services utilized by your business. You need not invest your own time or staff while making vat claims since a capable vat agent can do the same on your behalf and only collect fees when your refund claim is approved.

The hmrc has provided for 14,000 classifications of goods and services that are subject to customs duties, excise duties and import vat. Most alcohol and tobacco products along with certain activities such as gambling are subject to excise duties while almost all other imports fall under customs duties and import vat depending on the goods and the country from where they arrive.

The hmrc has specified eu special territories where import vat will be levied if goods or services are brought in or sent to such territories. They are The French Overseas Departments of Guadeloupe, The Canary Islands in Spain, The Aland Islands in Finland, French Guiana, Mount Athos and Reunion and Martinique in Greece, and The Channel Islands in the UK. This vat will also be levied when you import goods from non eu countries.

However, if you are a vat registered trader in the UK then you can apply for a vat refund in case you have already paid vat on any goods in the country of origin itself before being imported into the UK. You can also offset this vat against sales vat if the goods that you have imported are sold in the local UK market. Countries such as the UK and Italy also offer special vat deferment schemes where you can get relief from import vat for up to one month by filing out a special vat form with the hmrc and opening of a special vat deferment account with them. This move would help protect your cash flow.

Once you start selling your goods or services in the local market then you will also need to charge the local sales vat rate to your clients. You will need to make vat invoices that specifically mention vat rates and also file regular vat returns. If you have problem in understanding various duties and taxes imposed by the hmrc then you should engage the services of a proficient vat and customs agent. This will allow you to concentrate on expanding your business while all relevant paperwork and payment of taxes and duties is handled in an efficient manner.

The import vat rate is the same as sales vat rates of similar products sold in the UK. The UK has 3 vat rate slabs. The first is the standard vat rate of 17.5% that is slated to rise to 20% from January 4, 2011. The second is the reduced vat rate of 5% while the third is zero vat rate. There are also certain goods and services that are totally exempt from any vat.

You should have sufficient knowledge on various duties and taxes applicable on imported goods into the UK so that you can calculate the costs on an accurate basis. You should use all legal avenues to reduce your costs such as vat refunds, vat deferments, etc so that you can lower your costs further and improve the cash flow of your business. You should diligently pay import vat when you import goods from eu special territories or from non eu countries and use the services of an efficient vat agent to claim additional vat back.

In the UK, all vat rules are issued by HM Revenue and Customs or hmrc vat department. Hmrc has classified all taxable and vat exempt goods and services into 14,000 classifications. Thus, any product or service that you purchase or sell is bound to fall under one of these classifications. Most of these goods and services fall under the standard vat rate of 17.5% that is slated to rise to 20% from January 4, 2011 onwards. Other goods and services fall under the reduced vat rate of 5% while a select few fall under the zero vat rate. There are also certain goods and services such as those related to charitable events, among others that fall under the vat exempt scheme where no vat can be added or claimed back.

Your vat calculations will begin once you know the correct vat rate of each of your products and services. For example, if you are selling a pair of shoes to your customers for £200 exclusive of vat then at 17.5% vat, your vat amount will be £35 while the total amount of your vat invoice including vat will be £235. Similarly, if you sell a product for £50 that attracts 5% vat rate then the vat amount on that product will be £2.50 while the total amount inclusive of vat will be £52.50. It is very important to know your basic product or service cost, your vat cost and your total cost inclusive of vat so that you can bill your customers at the best possible rates while also filing your vat returns without making any calculation errors.

Calculating the correct amount of vat is also vital when you apply for vat refunds. You would need to do this if your goods or services are imported into the UK from any other eu country that has already collected vat on them. In such a case, you would need to apply for vat reclaim to get back the money already paid in the country of origin. You should hire an expert vat agent so that chances of any miscalculations are minimized. Your vat agent can also take over all vat calculations so that all your vat returns and vat refunds are handled within the stipulated time frame and that too without any calculation mistakes. The hmrc vat department also offers various vat accounting schemes including the flat rate scheme, and in such a case different calculation methods will need to be employed.

Although vat is not a very complex tax method, you will still require calculations that manage to separate your basic costs from taxes. This will allow you to purchase and sell your goods and services after calculating proper profit margins. Since you will also need to file regular vat returns and might also have to apply for vat refunds, precise vat calculations will help you stay on the right side of the vat law.