Starting a new business venture inside of 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 that 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 such as the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others have adapted vat and most countries in addition have 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 a EU country which has changed to vat then appropriate comprehension of eu vat rules is required for keeping a tight leash on your costs.
Any services or goods that you import in your country will attract customs or excise duties or even import vat, dependant on its classification. In order to charge vat to the customers, you will also need to turn into a vat registered dealer, which may be done once you cross the vat threshold in taxable sales. You can now come up with a vat invoice inside your country and charge the applicable vat rates to your 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 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 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 some other services overseas, then you can still file for a vat reclaim to recover the quantity of vat paid.
The eu 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 goods that are vat exempt. These rates can easily make a big difference in your product costs and if you are able to recover any tax which has previously been paid this can make a positive impact on your enterprise bottom-line. An experienced and trusted vat agent can surely help you. You should seek out an agent that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.
Many countries in Europe have chose 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 becomes simpler and you will surely have the ability to recover vat amounts that have been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from any financial shocks.