Starting a new business in a vat enabled European State or country is only going to 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 costs are kept at a minimum and that the issue of double taxation does not eat into 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, among others have adapted vat and most countries in addition have shifted to a common currency, i.e. the Euro www.vatvalidation.com/vat. This move has facilitated smoother trading between these countries if you would like to begin a business in an EU country which has changed over to vat then appropriate comprehension of eu vat rules is required to keep a tight leash on your costs.
Any goods or services which you import in your country will attract customs or excise duties or even 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 may be done once 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 the customers. Additionally, you will have to file regular vat returns based on the 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 from the original country or have used services in a country where vat has been paid you’ll be able to reclaim the vat amount more info. You are able to claim vat amount on goods where vat was already paid by applying for a vat refund in the original country. In the event you or your workers have attended trade shows or paid vat on any other services overseas, 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 products or services vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can make a big difference in your product costs and if you are able to recover any tax that has already been paid this can make a positive impact on your business bottom-line. An experienced 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 flat fee.
Many countries in Europe have opted for a uniform tax system on products or services, which is great news if you plan to start a new business in that 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.
