All eu countries that follow vat have to follow vat eu directives

Most EU countries have slowly switched over to VAT or value added tax on goods and services, along with order to abide by a standard code all eu countries that follow vat have to follow vat eu directives. These directives are amended regularly in a bid to help fine tune the system so as to avoid tax leaks and make sure better co-operation among states in collecting and refunding vat.

The European countries through its website ec.europa.eu tries to educate member countries and vat registered traders in various countries on a number of rules and regulations that apply on current and future vat rates and refunds. Several countries in Europe including the UK, Sweden, Poland, Greece, Germany, Italy, etc have slowly moved to the system of vat tax in a bid to improve tax revenues and also to plug tax holes which were previously draining precious resources. Each vat enabled country has its own interpretation of european vat or europa vat rules that may vary slightly but they are almost similar in principle.

For instance, in the United Kingdom a trader which has crossed across the vat threshold limit will have to turn into a vat registered trader before issuing any vat http://vatvalidation.com/vat invoice. The following vat collected from the trader will then be adjusted against any vat paid as well as the difference is paid to HM Revenue and Customs or hmrc vat department that looks after all issues connected to customs duties, excise and vat in the United Kingdom. Similarly, a trader in Poland would have to issue a faktura invoice, which essence is a vat invoice however in Polish language, and pay vat to the relevant vat department in the country.

Since each country has adopted vat in a slightly different manner by applying varying vat rates to similar products, traders all across Europe usually have to hire a vat agent or vat consultant to help file vat returns regularly. These agents need to be experts in interpreting vat eu rules and vat rules applicable in their country. For instance, a UK trader with vat registration needs to appoint a vat agent that may be conversant with uk vat rules. If that trader imports goods from other vat european countries that have already charged vat on the same then the vat agent of this trader will be able to file for vat refund in order to reclaim vat back. This method is pretty lengthy but could help European traders recover vat amounts previously paid, which in turn can lower their costs and improve their cash flow.

The europa website attempts to educate all vat enabled eu countries to follow a standard system of vat in order to decrease friction among member countries as a result of varying vat rates on similar goods or services. Several European countries too have come with their very own amendments while they attempt to adapt completely to eu vat directives for better vat compliance in their own country and across borders too.

The move of shifting over to vat has benefited various countries in Europe since they have witnessed higher revenue collections over the years. However, in a bid to ensure better co-operation between states, vat eu directives and amendments from the European Commission are making constant efforts to further improve the system of collecting and refunding vat.