Starting a new business venture in 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 costs are kept at a minimum and that the issue of double taxation doesn’t eat in your profits.
Several EU countries have embraced vat or value added tax over the past decade so 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 vat check have adapted vat and most countries have also moved to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to begin a business in an 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 goods or services which you import into your country will attract customs or excise duties as well as import vat, based on its classification. To be able to charge vat to your customers, you will also 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. You will also have to file regular vat returns determined by the sales and purchases.
However, if you are located in any european country that follows vat system and 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 you’ll be able to 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 employees have attended trade events or paid vat on some other services overseas, you’ll be able to still file for a vat reclaim to recover the quantity of vat paid.
The eu vat rates various eu countries range from 15 to 25%, while special vat rates on certain products or services range from 1 to 6%. There are also certain products which are vat exempt. These rates can make a huge difference in your product costs and when you can recover any tax which has previously been paid then this can make a positive impact on your business bottom-line. A professional and trusted vat agent can surely help you out. You should look for a broker that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.
Many countries in Europe have chose a uniform tax system on goods and services, which is good news if you intend to begin a new business in that country. Your costing process will become simpler and you’ll surely be able 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 so as to defend your fledgling business from the financial shocks.