Starting a new business 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 costs are kept at a minimum and therefore the problem of double taxation does not eat in your profits.
Several EU countries have embraced vat or value added tax 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 www.vatvalidation.com shifted to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to begin a business in an EU country which has changed over to vat then appropriate knowledge of eu vat rules is mandatory to keep a tight leash on your own costs.
Any services or goods which you import in your country will attract customs or excise duties or even import vat, based on its classification. To be able to charge vat to the customers, you will also need to turn into a vat registered dealer, which can 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 to your country where vat was already paid in the original country or used services in a country where vat has been paid you’ll be able to 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 case 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 recuperate the amount 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’s 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 which has already been paid this can make a positive impact on your enterprise bottom-line. An experienced and trusted vat agent can surely help you out. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered rather than charging a set fee.
Many countries in Europe have opted for a uniform tax system on goods and services, and this is great news if you intend to start a whole new business in such a country. Your costing process will become simpler and you will surely have the ability to recover vat amounts that have been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from the financial shocks.