Starting a new business venture in 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 ensure that your cost is 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 like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others www.vatcheck.com/vat have adapted vat and many countries have also shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you want to begin a business in a EU country which has changed over to vat then appropriate knowledge of eu vat rules is required for keeping a tight 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, based 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 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. 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 have imported goods to your country where vat was already paid from the original country or used services in a country where vat has been 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 the event you or your workers have attended trade shows or paid vat on some other services overseas, then you can still file for a vat reclaim to recuperate 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’s also certain goods that are vat exempt. These rates can easily make a huge difference in the product costs and if you are able to recover any tax which has previously been paid then this can make a positive impact on your business bottom-line. An experienced and trusted vat agent can surely help you. You should look for an agent 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 products or services, which is good news if you plan to start a new business in that country. Your costing process becomes simpler and you will surely be able 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.