Starting a new business venture 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 ensure that your costs are kept at a minimum and that the problem of double taxation doesn’t 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 most countries have also www.vatvalidation.com moved to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to begin a business in a EU country that has changed to vat then appropriate comprehension of eu vat rules is mandatory for keeping a decent 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. In order to charge vat to your customers, you’ll need to turn into a vat registered dealer, which can be done once 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. 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 have imported goods to your country where vat was already paid from the original country or used services in a country where vat may be paid you’ll be able to reclaim the vat amount. You can claim vat amount on goods where vat was already paid by applying for your vat refund inside the original country. In the event you or your workers have attended trade shows or paid vat on any other services overseas, you’ll be able to still apply for a vat reclaim to recover the quantity of vat paid.
The european vat rates various eu countries range from 15 to 25%, while special vat rates on certain products or services vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can easily make a big difference in your product costs and if you can recover any tax that has already been paid this can easily make a positive impact on your business bottom-line. A professional and trusted vat agent can surely help you. You should seek out a broker that only takes fees or commissions from vat amounts recovered instead of charging a set fee.
Many countries in Europe have opted for a uniform tax system on goods and services, which is great news if you intend to start a new business in that 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 should surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from the financial shocks.