Starting a new business in a vat enabled European State or country is only going to 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 make sure that your costs are kept at a minimum and therefore the issue of double taxation doesn’t eat into your profits.
Several EU countries have embraced vat or vat over the past 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 have adapted vat and most countries in addition have moved to one common currency, i.e. the Euro vatvalidation.com/vat. This move has facilitated smoother trading between these countries and if you would like to begin a business in a EU country which has changed over to vat then appropriate comprehension of eu vat rules is mandatory for keeping a decent leash on your 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. To be able to charge vat to the customers, you’ll need to turn into a vat registered dealer, which may be done as soon as you cross the vat threshold in taxable sales. You can now come up with a vat invoice in your country and charge the applicable vat rates to your customers. Additionally, you will have to file regular vat returns determined by 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 was already paid in the original country or used services in a country where vat may be paid then you can reclaim the vat amount read more here. You can claim vat amount on goods where vat was already paid by applying for a vat refund inside the original country. In the event you or your workers have attended trade events or paid vat on any other services overseas, you’ll be able to still file for a vat reclaim to recuperate the amount of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain goods and services vary from 1 to 6%. There’s also certain goods that are vat exempt. These rates can make a huge difference in your product costs and if you can recover any tax that has previously been paid this can make a positive impact on your enterprise bottom-line. A professional and trusted vat agent can surely help you. You should look for an agent that only takes fees or commissions from vat amounts recovered instead of charging a set fee.
Many countries in Europe have chose a uniform tax system on goods and services, which is great news if you intend to start a whole new business in such a country. Your costing process becomes simpler and you’ll surely be able to recover vat amounts that have already 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.
