Starting a new business venture inside of 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 help you to legally exploit all avenues to make sure that your cost is kept at the very least and therefore the problem of double taxation doesn’t eat in your profits.
Several EU countries have embraced vat or vat in the last 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, amongst others have adapted vat and most countries in addition have moved to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to start a business in an EU country which has changed over to vat then appropriate knowledge of eu vat rules is mandatory for keeping a tight leash on your own costs.
Any goods or services that you import in your country will attract customs or excise duties or even import vat, dependant on its classification. To be able to charge vat to your customers, you will also 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 come up with a vat invoice in your country and charge the applicable vat rates to the customers. Additionally, you will need to file regular vat returns determined by your sales and purchases.
However, if you’re 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 have 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 has already been paid by applying for your vat refund inside the original country. In the event you or your employees have attended trade events or paid vat on some other services in another country, you’ll be able to still file for a vat reclaim to recuperate the quantity of vat paid.
The eu 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’s also certain products which are vat exempt. These rates can easily make a big difference in the product costs and when you are able to recover any tax that 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. You should seek out a broker 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 great news if you plan to start a whole new business in such a country. Your costing process will become simpler and you will 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 the financial shocks.