Confirm all european vat rules before importing goods into an EU State
Starting a new business 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 allow you to legally exploit all avenues to ensure that your costs are kept at a minimum and therefore the issue of double taxation does not 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 such as the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others have adapted vat and many countries have also shifted to one common currency, i.e. the Euro vatvalidation.com/vat. This move has facilitated smoother trading between these countries if you want to start a business in a EU country that has changed to vat then appropriate comprehension of eu vat rules is mandatory for keeping a tight leash on your costs.
Any services or goods which you import into your country will attract customs or excise duties or even import vat, dependant 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 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 determined by your sales and purchases.
However, if you are based in any european country that follows vat system and also have imported goods to your country where vat has already been paid from the original country or used services in a country where vat may be paid then you can reclaim the vat amount going here. You are able to claim vat amount on goods where vat was already paid by applying for your vat refund inside the original country. In case you or your employees have attended trade shows or paid vat on some other services overseas, then you can 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 vary from 1 to 6%. There’s also certain goods that are vat exempt. These rates can easily make a huge difference in the product costs and when you can recover any tax that has already been paid then this can easily make a positive influence on your business bottom-line. An experienced and trusted vat agent can surely help you. 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 opted for a uniform tax system on products or services, which is great news if you intend to begin a new business in such a country. Your costing process becomes simpler and you will surely be able to recover vat amounts which may 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 the financial shocks.