If you want to start a fresh business in a European country you then should open a small business in a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and also if you do find yourself paying vat more often than once then you can certainly also obtain a vat refund to recoup your money vat validation.
Through the years many Countries in europe including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as being a method of collecting tax in a very transparent manner whilst plugging tax leaks. The method has become largely successful and this common method of charging tax on services and goods has also facilitated smooth imports and exports between countries that form section of the european vat system.
You can start a new business in any eu vat state or country and start importing goods to your own country. You will however pay the suitable customs or excise duties and might also need to pay import vat according to the classification of your goods. However, as soon as your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration to turn into a vat registered trader or dealer. This will likely clear the path to get your own vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to your tax authorities. You will now truly be part of your eu vat system.
However, there are several benefits of remaining in the europa vat system. If you have imported goods originating from a member vat country where vat was already charged then you can simply complete the required vat form to claim a vat refund. Just in case you or your staff have paid vat during trade shows or on any other services that attract vat then such vat rates too can be claimed back from that country provided all documentary proof is shown. As you might not able to learn almost allin regards to the latest eu vat rules it will be better when you allow an expert vat agent to reclaim vat in your stead.
Your vat agent should also file your vat returns in time and also ensure that your vat refund applications are handled within time limit. Most countries in Europe which have adopted vat normally have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on many goods. The second is the lower vat rate of about 1 to 6% on specific goods whilst the third is products which are vat exempt. If you have paid vat in another country then this is certainly a large amount, and recovering this amount can certainly lower costing and give a much-needed financial injection to your new business search vat number.
Vat is really a powerful solution to make sure that tax leakage is reduced in a seamless manner. You also should opt for starting a business in a vat friendly european country whilst importing goods or services from a member country that also follows vat. By opening up a business inside a eu vat state you can certainly retain control of your costs while plugging your own revenue leaks on services or goods where vat was already charged.