Starting a new business venture in 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 make sure that your costs are kept at the very least and therefore the problem of double taxation does not eat in your profits.
Several EU countries have embraced vat or vat in the last 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, amongst others have adapted vat and many countries have also moved to a 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 that has changed to vat then appropriate comprehension of eu vat rules is required for keeping a tight leash on your costs vat control.
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 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 in your country and charge the applicable vat rates to the customers. You will also need to file regular vat returns based on the sales and purchases.
However, if you’re based in any european country that follows vat system and also have imported goods to your country where vat has already been paid in the original country or used services in a country where vat may be paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat was already paid by applying for a vat refund inside the original country. In case you or your workers have attended trade shows or paid vat on any other services overseas, then you can still file for a vat reclaim to recuperate the quantity of vat paid.
The european vat rates various eu countries range from 15 to 25%, while special vat rates on certain goods and services vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can make a big difference in your product costs and when you can recover any tax that has already been paid 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 instead of charging a set fee check vat number.
Many countries in Europe have opted for a uniform tax system on goods and services, and this is great news if you intend to begin a new business in that country. Your costing process becomes simpler and you’ll surely have the ability 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 any financial shocks.