Starting a new business venture in a vat enabled European State or country will only bear fruit should you confirm all european vat rules before importing goods into that EU State get the facts. This move will allow you to legally exploit all avenues to make sure that your costs are kept at the very least and that the problem of double taxation does not eat in your profits.
Several EU countries have embraced vat or vat in the last decade so 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 one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to begin a business in a EU country which has changed to vat then appropriate comprehension of eu vat rules is required to keep a tight leash on your own costs.
Any services or goods that 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 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. You can now make a vat invoice in your country and charge the applicable vat rates to the customers. Additionally, you will need to file regular vat returns determined by 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 from the original country or have used services in a country where vat may be paid you’ll be able to reclaim the vat amount. You are able to 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 any other services in another country, then you can still file for a vat reclaim to recuperate 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 make a big difference in the product costs and if you can recover any tax which has already been paid this can easily make a positive influence on your enterprise bottom-line helpful hints. A professional and trusted vat agent can surely help you out. Make sure you 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 chose a uniform tax system on products or services, and this is good news if you intend to begin a new business in such a country. Your costing process will become simpler and you’ll surely have the ability to recover vat amounts that have 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.