Starting a new business 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 help you to legally exploit all avenues to ensure that your cost is kept at the very least and that the issue of double taxation does not 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 many countries in addition have shifted to vat check one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to begin a business in an EU country which has changed over to vat then appropriate knowledge of eu vat rules is mandatory for keeping a decent leash on your costs.
Any services or goods which 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 the customers, you will also need to turn into a vat registered dealer, which may be done as soon as you cross the vat threshold in taxable sales. You can now 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’re based in any european country that follows vat system and also 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 may be paid you’ll be able to reclaim the vat amount. You are able to 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 employees have attended trade events or paid vat on any other services overseas, you’ll be able to still file for a vat reclaim to recover the quantity of vat paid.
The eu vat rates various eu countries range from 15 to 25%, while special vat rates on certain goods and services range from 1 to 6%. There are also certain goods that are vat exempt. These rates can make a huge difference in the product costs and when you are able to recover any tax that has already been paid this can make a positive influence on your enterprise bottom-line. An experienced and trusted vat agent can surely help you out. Make sure you look for an agent that only takes fees or commissions from vat amounts recovered instead of charging a set fee.
Many countries in Europe have chose a uniform tax system on goods and services, and this is great news if you plan to begin a whole new business in that country. Your costing process will become simpler and you’ll surely be able to recover vat amounts which may have 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 the financial shocks.