Starting a new business in a vat enabled European State or country is only going to bear fruit if you confirm all european vat rules before importing goods into that EU State. This move will help you to legally exploit all avenues to make sure that your costs are kept at the very least and that the problem of double taxation does not eat into your profits.
Several EU countries have embraced vat or value added tax in the last decade so that trading between such countries proceeds on a common platform. Countries like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, among others http://vatcheck.com/vat have adapted vat and most countries have also shifted to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to start a business in a EU country that has changed to vat then appropriate comprehension of eu vat rules is required to keep a tight leash on your own costs.
Any goods or services that you import into your country will attract customs or excise duties as well as import vat, dependant on its classification. In order to charge vat to the customers, you will also need to turn into a vat registered dealer, which may be done once you cross the vat threshold in taxable sales. Now you can make a vat invoice inside your country and charge the applicable vat rates to your customers. You will also have to file regular vat returns determined by your sales and purchases.
However, if you are located in any european country that follows vat system and also have imported goods into your country where vat was already paid in the original country or used services in a country where vat has been paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat was already paid by applying for your vat refund inside the original country. In the event you or your workers have attended trade events or paid vat on some other services in another country, you'll be able to still apply for a vat reclaim to recover the amount of vat paid.
The european 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 are also certain products which are vat exempt. These rates can make a big difference in the product costs and when you can recover any tax that has previously been paid this can easily make a positive influence on your enterprise bottom-line. A professional and trusted vat agent can surely help you. You should seek out a broker that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.
Many countries in Europe have opted for a uniform tax system on goods and services, and this is great news if you plan to begin a whole new business in such a country. Your costing process will become simpler and you will surely have the ability to recover vat amounts that have been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from any financial shocks.
