UK companies may not be aware that if they bring in goods from the EU, they may be able to claim back some of the VAT they paid on them at the time of the transaction. Those wishing to do this for 2013 dealings will need to get their skates on, however, as the September 30 deadline for claiming electronically is looming.
What are EU talking about?
The idea behind this relief is that VAT on internationally shipped goods is payable at the time they reach UK shores, and is usually paid at UK rates. Often, these are higher that the rates applicable in the country of origin, so companies can often claim the difference back. Provided that your company is VAT-registered in the UK, and not registered for VAT in the EU member state, you can probably take advantage of this opportunity.
Though seen as a complex procedure by some companies, it can certainly be a worthwhile claim to make, and can be seen as a good educational process for those who want to familiarise themselves more with individual European markets. Of course, using a clued-up accounting and financial service can only make the job easier.
EU-seful to know
There are currently 28 member states in the EU, although bear in mind that Croatia only joined in July 2013, so any Croatian transactions from before then will not be applicable. Iceland, Norway and Switzerland are not EU nations, but claiming relief might still be possible.
Though the EU is a partnership, different countries will apply minimum claims and various procedures via which to make a claim. The governmental resource Gov.uk is an excellent starting point for those looking to make sense of all this.
Achieving a state of satisfaction
The EU gives us an exciting and diverse market in close proximity to the UK and, while some international traders may find regulations in trading between one country and the next to be frustrating, the size and economy of the union gives us a market comparable to that in North America. In order to get the most out of cross-nation trading, however, it is important to have a sound understanding of trading practices in each and every country in which you hope to get involved.
Of course, another excellent way to make sure your company is both complying with tax legislation and taking advantage of any tax relief applicable is to make use of a professional accountant. By outsourcing accountancy services, UK business owners can give themselves more time and focus on delving into the European market.