Starting a new business 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 cost is kept at the very least and that the issue of double taxation does not 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 shifted to https://vatcheck.com/vat a 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 which has changed over 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 in your country will attract customs or excise duties or even import vat, based on its classification. To be able to charge vat to your customers, you will also need to turn into a vat registered dealer, which may be done as soon as you cross the vat threshold in taxable sales. You can now make a vat invoice in your country and charge the applicable vat rates to your customers. Additionally, you will need to file regular vat returns determined by the sales and purchases.
However, if you’re located in any european country that follows vat system and also have imported goods into your country where vat was already paid from the original country or have used services in a country where vat has been paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat was already paid by applying for your vat refund in the original country. In case you or your workers have attended trade events or paid vat on any other services in another country, 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 vary from 1 to 6%. There are also certain goods that are vat exempt. These rates can easily make a big difference in the product costs and if you can recover any tax that has previously been paid this can easily make a positive impact on your enterprise bottom-line. An experienced and trusted vat agent can surely help you out. You should look for an agent that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.
Many countries in Europe have opted for 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 becomes simpler and you will surely have the ability 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 in order to defend your fledgling business from the financial shocks.