Starting a new business venture inside of a vat enabled European State or country will only bear fruit should you confirm all european vat rules before importing goods into that EU State. This move will help you to legally exploit all avenues to ensure that your costs are kept at the very least and therefore the issue of double taxation does not eat into your profits.
Several EU countries have embraced vat or value added tax in the last decade to ensure that trading between such countries proceeds on a common platform. Countries like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others have adapted vat and many countries in addition have vatvalidation.com shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to begin a business in a EU country that has changed to vat then appropriate comprehension of eu vat rules is mandatory to keep a decent leash on your own costs.
Any services or goods that you import into your country will attract customs or excise duties or even import vat, based on its classification. In order to charge vat to the customers, you’ll have to turn into a vat registered dealer, which may be done once you cross the vat threshold in taxable sales. You can now come up with a vat invoice inside your country and charge the applicable vat rates to your customers. You will also need to file regular vat returns based on the sales and purchases.
However, if you are based in any european country that follows vat system and also have imported goods into your country where vat has already been paid in the original country or used services in a country where vat may be paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat has already been paid by applying for a vat refund inside the original country. In case you or your workers have attended trade events or paid vat on some other services in another country, then you can still file for a vat reclaim to recover the amount of vat paid.
The eu vat rates various eu countries range from 15 to 25%, while special vat rates on certain goods and services vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can easily make a big difference in the product costs and if you are able to recover any tax which has previously been paid then this can easily make a positive influence on your business bottom-line. An experienced and trusted vat agent can surely help you out. You should look for an agent that only takes fees or commissions from vat amounts recovered rather than charging a set fee.
Many countries in Europe have opted for a uniform tax system on products or services, and this is great news if you plan to begin a new business in such a country. Your costing process becomes simpler and you will surely have the ability to recover vat amounts that have been charged previously. However, you should surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from any financial shocks.