Starting a new business in a vat enabled European State or country is only going to 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 costs are kept at the very least and therefore the issue of double taxation does not eat in 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, among others have adapted vat and many countries in addition have https://vatvalidation.com 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 that has changed over to vat then appropriate comprehension of eu vat rules is mandatory to keep a decent leash on your own costs.
Any services or goods that you import in 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 will also need 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 make a vat invoice inside your country and charge the applicable vat rates to the customers. Additionally, you will need to file regular vat returns based on 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 have used services in a country where vat has been paid you’ll be able to reclaim the vat amount. You are able to claim vat amount on goods where vat has already been paid by applying for a vat refund in the original country. In the event you or your workers have attended trade events or paid vat on some other services in another country, you’ll be able to still apply for a vat reclaim to recover the amount of vat paid.
The eu vat rates various eu countries range from 15 to 25%, while special vat rates on certain products or services range from 1 to 6%. There are also certain products which are vat exempt. These rates can easily make a big difference in the product costs and if you can recover any tax that has already been paid this can make a positive impact 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 rather than charging a flat fee.
Many countries in Europe have opted for a uniform tax system on goods and services, which is good news if you plan to start a new business in such a country. Your costing process will become simpler and you’ll surely have the ability 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 any financial shocks.