Starting a new business venture inside of 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 help you to legally exploit all avenues to make sure that your cost is kept at the very least and therefore 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 in addition have shifted to https://vatcheck.com/vat 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 over to vat then appropriate comprehension of eu vat rules is mandatory for keeping a tight leash on your own costs.
Any goods or services that you import into your country will attract customs or excise duties as well as import vat, based on its classification. To be able to charge vat to your customers, you’ll need to turn into a vat registered dealer, which can be done as soon as 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 have to file regular vat returns determined by the sales and purchases.
However, if you are located in any european country that follows vat system and also have imported goods to your country where vat has already been paid in 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 has already been 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, then you can still apply for a vat reclaim to recuperate the quantity of vat paid.
The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain goods and services range from 1 to 6%. There’s also certain products which are vat exempt. These rates can easily make a huge difference in the product costs and when you are able to recover any tax that has already been paid this can easily make a positive influence on your enterprise bottom-line. A professional and trusted vat agent can surely help you out. Make sure you look for a broker that only takes fees or commissions from vat amounts recovered instead of charging a flat fee.
Many countries in Europe have chose a uniform tax system on products or services, and this is great news if you intend to begin a whole new business in such a country. Your costing process becomes simpler and you’ll surely be able to recover vat amounts which may have already 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 the financial shocks.