Starting a new business venture inside of a vat enabled European State or country will only bear fruit if you confirm all european vat rules before importing goods into that EU State. This move will allow you to legally exploit all avenues to ensure that your cost is kept at a minimum and that the issue of double taxation does not eat in 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, amongst others have adapted vat and many countries in addition have www.vatvalidation.com shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to begin a business in a EU country which has changed to vat then appropriate knowledge 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 as well as import vat, based on its classification. In order to charge vat to your customers, you’ll need to turn into a vat registered dealer, which can be done as soon as you cross the vat threshold in taxable sales. Now you can make a vat invoice in your country and charge the applicable vat rates to your customers. You will also have to file regular vat returns based on your sales and purchases.
However, if you’re located 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 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 inside the original country. In the event you or your workers have attended trade events or paid vat on some other services overseas, then you can still file 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 products or services range from 1 to 6%. There are 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 which has already been paid this can easily make a positive influence on your business bottom-line. A professional and trusted vat agent can surely help you out. Make sure you seek out an agent that only takes fees or commissions from vat amounts recovered rather than charging a set fee.
Many countries in Europe have chose a uniform tax system on products or services, which is good news if you intend to start a new business in that country. Your costing process will become simpler and you will surely have the ability 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 so as to defend your fledgling business from the financial shocks.