Starting a new business venture 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 help you to legally exploit all avenues to ensure that your cost is kept at the very least and therefore the problem of double taxation doesn’t eat into your profits.
Several EU countries have embraced vat or value added tax 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 have adapted vat and most countries in addition have www.vatvalidation.com shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to start a business in an EU country which has changed to vat then appropriate knowledge of eu vat rules is required to keep a decent leash on your own costs.
Any goods or services that you import into 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’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 make a vat invoice inside your country and charge the applicable vat rates to your customers. Additionally, you will 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 to your country where vat has already been paid from the original country or have 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 was already paid by applying for a vat refund inside the original country. In case you or your employees have attended trade events or paid vat on some other services in another country, then you can still apply for a vat reclaim to recuperate the amount of vat paid.
The eu vat rates various eu countries range between 15 to 25%, while special vat rates on certain products or services vary from 1 to 6%. There are also certain products which are vat exempt. These rates can make a huge difference in the product costs and when you can recover any tax that has previously been paid then this can make a positive influence on your enterprise bottom-line. An experienced and trusted vat agent can surely help you. You should seek out a broker that only takes fees or commissions from vat amounts recovered rather than charging a set fee.
Many countries in Europe have opted for a uniform tax system on products or services, which is great news if you intend to begin a whole new business in such a country. Your costing process will become simpler and you will surely have the ability to recover vat amounts that have been charged previously. However, you should surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from any financial shocks.