Starting a new business venture in a vat enabled European State or country is only going to 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 a minimum and therefore the problem of double taxation doesn’t eat into your profits.
Several EU countries have embraced vat or vat over the past 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 vat check have adapted vat and many countries in addition have shifted 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 an EU country that has changed over to vat then appropriate comprehension of eu vat rules is mandatory to keep a decent leash on your own costs.
Any goods or services which you import in your country will attract customs or excise duties or even import vat, based 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 as soon as you cross the vat threshold in taxable sales. Now you can make a vat invoice in your country and charge the applicable vat rates to your customers. You will also have to file regular vat returns based on your sales and purchases.
However, if you are based in any european country that follows vat system and also have imported goods into your country where vat has already been paid in the original country or have used services in a country where vat has been paid then you can 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 employees 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 from 15 to 25%, while special vat rates on certain products or services range from 1 to 6%. There’s also certain goods that are vat exempt. These rates can easily make a huge difference in your product costs and if you are able to recover any tax which has previously been paid this can make a positive influence on your enterprise 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 chose a uniform tax system on goods and services, which is good news if you intend to begin a whole new business in such a country. Your costing process becomes simpler and you will surely be able to recover vat amounts that have already been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from any financial shocks.