Starting a new business venture inside of 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 allow you to legally exploit all avenues to ensure that your cost is kept at the very least 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, among others have adapted vat and most countries in addition have http://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 an 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 as well as import vat, dependant on its classification. In order to charge vat to the customers, you will also 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 inside 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 have imported goods into your country where vat was already paid from the original country or used services in a country where vat may be 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 inside the original country. In the event you or your workers 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 recover the quantity of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain goods and services range from 1 to 6%. There’s also certain goods that are vat exempt. These rates can easily make a big difference in your product costs and when you can recover any tax that has already been paid this can easily 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 instead of charging a flat fee.
Many countries in Europe have chose a uniform tax system on goods and services, which is good news if you plan to start a new business in that 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 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.