If you wish to start a fresh business in a European country you then should open up a business in a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and even if you do find yourself paying vat more than once then you can certainly also apply for a vat refund to recoup your hard earned money.
Through 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 being a method of collecting tax in a transparent manner while also plugging tax leaks https://vatverification.com
. The process has been 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 a eu vat state or country and start importing goods to your own country. You will however be charged the suitable customs or excise duties and might also need to pay import vat depending on the classification of the goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country then you may need vat registration to turn into a vat registered trader or dealer. This will likely clear the path to get your personal vat no, charge appropriate vat rates in your vat invoice as well as present regular vat returns to the tax authorities. You will now truly be part of your eu vat system.
However, there are several advantages of staying in the europa vat system. If you have imported goods from a member vat country where vat was already 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 some 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 might not able to learn almost allin regards to the latest eu vat rules it would be better when you allow an expert vat agent to reclaim vat on your behalf.
Your vat agent also needs to file your vat returns on time as well as make sure that your vat refund applications are handled well within the time limit. Most countries in Europe which have adopted vat usually have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on many goods. The second is the reduced vat rate of around 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you have paid vat in another country then this is probably a large amount, and recovering this amount can easily reduce your costing and give a much-needed financial injection into your new business.
Vat is truly a powerful solution to ensure that tax leakage is reduced in a very seamless manner. You too should opt for starting a small business in a very vat friendly european country while also importing services or goods from a member country which also follows vat clicking here. By setting up a business in a eu vat state you are able to certainly retain control over your costs while plugging your revenue leaks on goods or services where vat has already been charged.
