Starting a new business venture in a vat enabled European State or country will only 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 make sure that your cost is kept at the very least and that the issue of double taxation does not eat into 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 vat check have adapted vat and most countries in addition have moved to a 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 which has changed over to vat then appropriate comprehension of eu vat rules is required to keep a decent leash on your own costs.
Any services or goods which 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 your customers, you’ll have to turn into a vat registered dealer, which may be done as soon as 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 have to file regular vat returns determined by the sales and purchases.
However, if you are based in any european country that follows vat system and also have imported goods into your country where vat has already been paid from the original country or used services in a country where vat has been paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat has already been paid by applying for your vat refund in the original country. In case you or your workers have attended trade shows or paid vat on some other services overseas, then you can still apply for a vat reclaim to recover the amount of vat paid.
The eu 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 products which are vat exempt. These rates can make a huge difference in your product costs and when you are able to recover any tax which has already been paid then this can make a positive influence on your business bottom-line. A professional 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 opted for a uniform tax system on goods and services, which is good news if you intend to begin a whole new business in that country. Your costing process becomes simpler and you will 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.