If you wish to begin a new business in any European country you then should open up a business inside a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and even should you find yourself paying vat more often than once then you can certainly also apply for a vat refund to recoup your money.
Over the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted over to vat or value added tax as a method of collecting tax in a transparent manner whilst plugging tax leaks. The process has become largely successful and also this common method of charging tax on services and goods has also facilitated smooth imports and exports between countries that form part of the european vat system.
You can begin a new business in any eu vat state or country and start importing goods into your own country. You'll however pay the suitable customs or excise duties and may also need to pay import vat depending on the classification of your goods. However, once your http://vatvalidation.com taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration to turn into a vat registered trader or dealer. This will likely clear the path for you to get your personal vat no, charge appropriate vat rates as part of your vat invoice and also present regular vat returns to your tax authorities. You'll now truly be a part of your eu vat system.
However, there are several advantages of remaining in the europa vat system. In case you have imported goods from a member vat country where vat has already been charged you'll be able to simply fill out the necessary vat form to claim a vat refund. In case you or your staff have paid vat during trade shows or on any other services that attract vat then such vat rates can also be claimed back from that country provided all documentary proof is shown. As you may not in a position to learn almost all about the latest eu vat rules it will be better if you allow a specialist vat agent to reclaim vat in your stead.
Your vat agent should also file your vat returns on time as well as ensure that your vat refund applications are handled well within time limit. Most countries in Europe that have adopted vat normally have 3 vat rates. The very first is the normal vat rate of about 15 to 25% on many goods. Second is the reduced vat rate of around 1 to 6% on specific goods while the third is goods that are vat exempt. If you have paid vat in another country then this is certainly a large amount, and recovering this amount can easily lower costing and provide a much-needed financial injection into your new business.
Vat is truly a powerful way to make sure that tax leakage is reduced in a very seamless manner. You too should opt for starting a business in a vat friendly european country whilst importing services or goods from a member country that also follows vat. By setting up a business in a eu vat state you can certainly retain control over your costs while plugging your own revenue leaks on goods or services where vat has already been charged.
