Starting a new business 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 allow you to legally exploit all avenues to make sure that your cost is kept at the very least and that the problem of double taxation doesn’t eat in your profits.
Several EU countries have embraced vat or vat over the past decade to ensure that trading between such countries proceeds on a common platform. Countries such as the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, among others www.vatcheck.com/vat have adapted vat and most countries in addition have 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 an EU country that has changed to vat then appropriate comprehension of eu vat rules is required for keeping a decent leash on your costs.
Any goods or services which you import in your country will attract customs or excise duties as well as import vat, based on its classification. To be able to charge vat to the customers, you’ll have to turn into a vat registered dealer, which can be done once you cross the vat threshold in taxable sales. Now you can come up with 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 based in any european country that follows vat system and also have imported goods to your country where vat has already been paid from the original country or have used services in a country where vat has been paid then you can reclaim the vat amount. You can claim vat amount on goods where vat was already paid by applying for your vat refund in the original country. In the event you or your workers have attended trade shows or paid vat on any other services overseas, you’ll be able to still apply 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 products or services vary from 1 to 6%. There’s also certain goods that are vat exempt. These rates can make a big difference in the product costs and if you can recover any tax which has previously been paid this can make a positive influence on your enterprise bottom-line. A professional and trusted vat agent can surely help you. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered instead of charging a flat fee.
Many countries in Europe have chose a uniform tax system on products or services, and this is good news if you plan to start a whole new business in that country. Your costing process becomes simpler and you will surely be able to recover vat amounts which may 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.