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 therefore the problem of double taxation doesn’t eat into 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 have adapted vat and most countries have also moved to vatcheck.com/vat a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you want to start a business in a 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 your customers, you will also have 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 make a vat invoice inside your country and charge the applicable vat rates to your customers. Additionally, you will need to file regular vat returns based on 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 has already been 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 are able to 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 any other services in another country, you’ll be able to still file for a vat reclaim to recover the quantity of vat paid.
The european vat rates various eu countries range from 15 to 25%, while special vat rates on certain goods and services range from 1 to 6%. There are also certain goods that are vat exempt. These rates can easily make a huge difference in your product costs and when you can recover any tax which 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 out. You should seek out an agent that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.
Many countries in Europe have opted for a uniform tax system on products or services, which is good news if you intend to start a whole 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 any financial shocks.