If you want to begin a new business in any European country then you should open up a business inside a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and also if you do end up paying vat more than once then you can also obtain a vat refund to recover your money.
Through the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as being a way of collecting tax in a very transparent manner whilst plugging tax leaks vatverification
. The method has been largely successful and this common method of charging tax on goods and services has facilitated smooth imports and exports between countries that form section of the european vat system.
You can begin a new business in any eu vat state or country and begin importing goods into your own country. You’ll however pay the appropriate customs or excise duties and might also need to pay import vat depending on the classification of the goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration in becoming a vat registered trader or dealer. This will likely clear the path for you to get your personal vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to the tax authorities. You will now truly be part of your eu vat system.
However, there are several benefits of remaining in the europa vat system. If you have imported goods originating from a member vat country where vat was already charged then you can simply complete the required vat form to claim a vat refund. Just in case you or your staff have paid vat during trade shows or on some other services that attract vat then such vat rates can also be claimed back from that country provided all documentary proof is shown. As you might not in a position to learn almost allin regards to the latest eu vat rules it will be better if you allow an expert vat agent to reclaim vat in your stead.
Your vat agent should also file your vat returns in time and also ensure that your vat refund applications are handled within time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on most goods. Second is the reduced vat rate of around 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you have paid vat in a foreign country then this is certainly large amounts, and recovering this amount can easily lower costing and provide a much-needed financial injection to your new business.
Vat is really a powerful way to make sure that tax leakage is reduced in a seamless manner. You also should go for starting a business in a very vat friendly european country while also importing services or goods from a member country that also follows vat click for source . By setting up a small business in a eu vat state you can certainly retain control over your costs while plugging your revenue leaks on goods or services where vat has already been charged.
