Starting a new business 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 that the issue of double taxation does not eat in your profits.
Several EU countries have embraced vat or value added tax 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, amongst others have adapted vat and many countries have also shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to start a business in a EU country which has changed over to vat then appropriate comprehension of eu vat rules is required to keep a decent leash on your own costs search vat number.
Any services or goods 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 the customers, you’ll have to turn into a vat registered dealer, which may 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 have to file regular vat returns based on your sales and purchases.
However, if you are based in any european country that follows vat system and also have imported goods into your country where vat was already paid in the original country or have 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 a 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 recuperate the quantity of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain products or services vary from 1 to 6%. There are also certain goods that 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 previously been paid this can easily make a positive influence on your enterprise bottom-line. An experienced and trusted vat agent can surely help you. Make sure you seek out an agent that only takes fees or commissions from vat amounts recovered rather than charging a flat fee vat check.
Many countries in Europe have opted for a uniform tax system on products or services, which is great news if you intend to begin a whole new business in that country. Your costing process will become simpler and you’ll 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.