Starting a new business in 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 allow you to legally exploit all avenues to ensure that your costs are kept at a minimum and therefore the problem of double taxation does not eat into your profits.
Several EU countries have embraced vat or vat 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, among others have adapted vat and most countries have also shifted to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to start a business in a EU country which has changed over to vat then appropriate comprehension of eu vat rules is mandatory to keep a tight leash on your own costs vat verification.
Any services or goods which you import into your country will attract customs or excise duties as well as import vat, based on its classification. In order to charge vat to your customers, you’ll have to turn into a vat registered dealer, which can be done once you cross the vat threshold in taxable sales. Now you can come up with a vat invoice in your country and charge the applicable vat rates to your customers. You will also need to file regular vat returns determined by your sales and purchases.
However, if you’re located in any european country that follows vat system and have imported goods into your country where vat has already been paid from the original country or used services in a country where vat has been paid you’ll be able to reclaim the vat amount. You can 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 shows or paid vat on any other services overseas, you’ll be able to still file for a vat reclaim to recover the amount 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 make a big difference in your product costs and when you can 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 out. You should seek out an agent that only takes fees or commissions from vat amounts recovered instead of charging a flat fee search vat number.
Many countries in Europe have chose a uniform tax system on goods and services, and this is great news if you intend to start a whole new business in that country. Your costing process will become simpler and you’ll surely be able 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 the financial shocks.