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 allow you to legally exploit all avenues to ensure that your costs are kept at the very least and that the issue of double taxation doesn’t eat in your profits.
Several EU countries have embraced vat or vat over the past 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 have also 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 start a business in an EU country that has changed to vat then appropriate knowledge of eu vat rules is required to keep a decent leash on your costs.
Any goods or services that you import into your country will attract customs or excise duties as well as 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 may be done once 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 your customers. You will also need to file regular vat returns determined by your sales and purchases.
However, if you are located in any european country that follows vat system and have imported goods into your country where vat has already been paid in the original country or have used services in a country where vat has been paid then you can reclaim the vat amount clicking here. 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 events or paid vat on some other services in another country, then you can still apply for a vat reclaim to recover the quantity of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain products or services vary from 1 to 6%. There are also certain goods that are vat exempt. These rates can make a big difference in the product costs and if you are able to recover any tax that has already been paid then this can make a positive impact on your enterprise bottom-line. An experienced and trusted vat agent can surely help you out. 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 chose a uniform tax system on goods and services, which is good news if you intend to start a new business in such a country. Your costing process will become simpler and you’ll surely be able to recover vat amounts which may 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.
