Starting a new business inside of a vat enabled European State or country will only bear fruit if you confirm all european vat rules before importing goods into that EU State. This move will allow you to legally exploit all avenues to ensure that your costs are kept at the very least and therefore the issue of double taxation does not eat into 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 most countries in addition have shifted to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to begin a business in an EU country which has changed over to vat then appropriate comprehension of eu vat rules is required for keeping a tight leash on your own costs vat check.
Any goods or services which you import in your country will attract customs or excise duties or even import vat, dependant 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. You can now make a vat invoice in your country and charge the applicable vat rates to the customers. Additionally, you will need 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 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 a vat refund in the original country. In case you or your workers have attended trade events or paid vat on any other services overseas, you’ll be able to still file for a vat reclaim to recover the quantity of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain goods and services vary from 1 to 6%. There are also certain products which are vat exempt. These rates can easily make a huge difference in the product costs and if you can recover any tax that has already been paid then this can make a positive impact on your enterprise bottom-line. A professional and trusted vat agent can surely help you. You should look for a broker 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 products or services, which is good news if you plan to begin a whole new business in such a country. Your costing process becomes simpler and you’ll surely have the ability to recover vat amounts that have already 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.