Starting a new business in a vat enabled European State or country will only 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 costs are kept at the very least and that the problem of double taxation does not eat into your profits.
Several EU countries have embraced vat or value added tax 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, amongst others have adapted vat and many countries have also moved to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to start a business in an EU country that has changed to vat then appropriate comprehension of eu vat rules is mandatory for keeping a decent leash on your costs.
Any services or goods that you import into your country will attract customs or excise duties or even import vat, dependant on its classification. In order 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 come up with a vat invoice in your country and charge the applicable vat rates to your customers. Additionally, you will have to file regular vat returns based on the sales and purchases.
However, if you are based in any european country that follows vat system and have imported goods into your country where vat was already paid from the original country or have used services in a country where vat may be paid then you can 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 case you or your workers have attended trade events or paid vat on any other services in another country, then you can still file for a vat reclaim to recover the quantity of vat paid.
The eu vat rates various eu countries range from 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 your product costs and if you can recover any tax which has previously been paid then 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 seek out an agent 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 goods and services, which is great news if you intend to begin a whole new business in that country. Your costing process will become simpler and you will surely have the ability 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 any financial shocks.