Starting a new business venture inside of 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 make sure that your cost is kept at the very least and that the problem of double taxation doesn’t eat into your profits.
Several EU countries have embraced vat or value added tax in the last decade so that trading between such countries proceeds on a common platform. Countries like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others have adapted vat and most countries in addition have shifted to www.vatcheck.com/vat one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to start a business in an EU country which has changed to vat then appropriate comprehension of eu vat rules is mandatory to keep a tight leash on your own costs.
Any goods or services which you import into 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’ll have to turn into a vat registered dealer, which can be done once 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 also have imported goods to your country where vat has already been paid in the original country or used services in a country where vat has been paid you’ll be able to reclaim the vat amount. You can 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 in another country, then you can still apply for a vat reclaim to recover 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 vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can easily make a huge difference in your product costs and if you can recover any tax that has previously been paid this can make a positive influence on your enterprise bottom-line. An experienced and trusted vat agent can surely help you. You should look for a broker that only takes fees or commissions from vat amounts recovered instead of charging a flat fee.
Many countries in Europe have opted for a uniform tax system on products or services, and this is great news if you plan to begin a 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.