If you want to begin a new business in a European country you then should open a small business inside a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and also should you find yourself paying vat more often than once then you can certainly also obtain a vat refund to recover your hard earned money vat check.
Over 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 transparent manner whilst plugging tax leaks. The method has become largely successful and also this common way of charging tax on goods and services has facilitated smooth imports and exports between countries that form section of the european vat system.
You can begin a new business in any eu vat state or country and begin importing goods to your own country. You will however pay the appropriate customs or excise duties and may also also need to pay import vat according to the classification of the goods. However, once 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 clear the path for you to get your own vat no, charge appropriate vat rates in your vat invoice and also present regular vat returns to the tax authorities. You’ll now truly be a part of your eu vat system.
However, there are many benefits of remaining in the europa vat system. If you have imported goods from a member vat country where vat has already been charged you’ll be able to simply complete the required vat form to claim a vat refund. In case you or your staff have paid vat during trade events or on any other services that attract vat then such vat rates can also be claimed back from that country provided all documentary proof is shown. As you might not be able to learn all about the latest eu vat rules it would be better if you allow an expert vat agent to reclaim vat on your behalf.
Your vat agent also needs to file your vat returns on time as well as ensure that your vat refund applications are handled within the time limit. Most countries in Europe which have adopted vat normally have 3 vat rates. The first is the standard vat rate of about 15 to 25% on most goods. The second is the lower vat rate of around 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you’ve paid vat in another country then this is certainly large amounts, and recovering this amount can easily reduce your costing and give a much-needed financial injection to your new business search vat number.
Vat is truly an efficient way to ensure that tax leakage is reduced in a seamless manner. You too should opt for starting a small business in a very vat friendly european country while also importing services or goods from a member country which also follows vat. By opening up a business in a eu vat state you can certainly retain control over your costs while plugging your revenue leaks on goods or services where vat has already been charged.