Confirm all european vat rules before importing goods into an EU State

Starting a new business inside of a vat enabled European State or country will only bear fruit if 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 costs are kept at a minimum and therefore the problem of double taxation doesn’t eat in your profits.

Several EU countries have embraced vat or vat 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 most countries have also moved to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to begin a business in an EU country which has changed to vat then appropriate comprehension of eu vat rules is mandatory for keeping a tight leash on your own costs.

Any goods or services which you import in your country will attract customs or excise duties or even import vat, dependant on its classification. In order to charge vat to your customers, you’ll have 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 your customers. You will also have to file regular vat returns determined by your sales and purchases.

However, if you are based in any european country that follows vat system and also have imported goods to your country where vat has already been paid from the original country or used services in a country where vat may be 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 case you or your employees have attended trade shows or paid vat on some other services in another country, you’ll be able to still apply for a vat reclaim to recuperate the amount of vat paid.

The european 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 are also certain goods that are vat exempt. These rates can make a huge difference in your 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. An experienced and trusted vat agent can surely help you out. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered instead of charging a set fee.

Many countries in Europe have opted for a uniform tax system on goods and services, which is great news if you intend to begin a new business in such a country. Your costing process will become simpler and you will surely have the ability to recover vat amounts which may have already been charged previously. However, you should surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from any financial shocks.

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