Starting a new business venture inside of a vat enabled European State or country is only going to bear fruit if 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 costs are kept at a minimum and therefore the issue of double taxation does not eat in your profits.
Several EU countries have embraced vat or value added tax in the last 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, among others have adapted vat and many countries in addition have moved to https://vatcheck.com/vat one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to start a business in a EU country that has changed over to vat then appropriate knowledge of eu vat rules is mandatory for keeping a tight leash on your own costs.
Any services or goods that 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 will also have 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 make a vat invoice in your country and charge the applicable vat rates to the customers. Additionally, you will have to file regular vat returns determined by the sales and purchases.
However, if you’re located in any european country that follows vat system and also have imported goods to your country where vat was already 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 has already been 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 amount of vat paid.
The european 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 are also certain products which 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 then this can easily make a positive impact on your business bottom-line. A professional and trusted vat agent can surely help you out. Make sure you look for a broker that only takes fees or commissions from vat amounts recovered instead of charging a flat 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 such a country. Your costing process will become simpler and you will surely be able to recover vat amounts which may 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.