Starting a new business inside of 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 cost is kept at a minimum and therefore the issue of double taxation doesn't 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, among others vat check have adapted vat and most countries have also moved to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you want to begin a business in a EU country that has changed over to vat then appropriate comprehension of eu vat rules is mandatory to keep a decent leash on your costs.
Any services or goods which 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 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 come up with a vat invoice inside your country and charge the applicable vat rates to the customers. Additionally, you will have to file regular vat returns based on your sales and purchases.
However, if you're located 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 have used services in a country where vat has been 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 the event you or your employees have attended trade shows or paid vat on any other services overseas, then you can still file for a vat reclaim to recuperate 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 range from 1 to 6%. There's also certain products which are vat exempt. These rates can make a huge difference in the product costs and when you are able to recover any tax which 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. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered instead of charging a set 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 new business in that country. Your costing process will become simpler and you'll surely be able 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 in order to defend your fledgling business from any financial shocks.