Open up a business in a eu vat state to retain control of your costs

If you wish to begin a fresh business in a European country then you should open up a business inside a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and even if you do find yourself paying vat more often than once then you can also obtain a vat refund to recover your hard earned money.

Through the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted over to vat or value added tax as a way of collecting tax in a transparent manner while also plugging tax leaks. The process has been largely successful and also this common method of charging tax on goods and services has also facilitated smooth imports and exports between countries that form section of the european vat system.

You can start a new business in any eu vat state or country and begin importing goods into your own country. You will however pay the appropriate customs or excise duties and may also also need to pay import vat according to the classification of your goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration in becoming a vat registered trader or dealer. This will likely clear the path to get your own vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to the tax authorities. You will now truly be a part of your eu vat system.

However, there are many advantages of remaining in the europa vat system. In case you have imported goods from a member vat country where vat was already charged then you can simply fill out the required vat form to claim a vat refund. In case you or your staff have paid vat during trade events or on some other services that attract vat then such vat rates can also be claimed back from that country provided all documentary proof is shown. As you may not be able to learn almost allin regards to the latest eu vat rules it will be better if you allow a specialist vat agent to reclaim vat in your stead.

Your vat agent should also file your vat returns on time and also make sure that your vat refund applications are handled within the time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The first is the standard vat rate of about 15 to 25% on most goods. The second is the lower vat rate of around 1 to 6% on specific goods while the third is products which are vat exempt. If you've paid vat in another country then this is certainly large amounts, and recovering this amount can certainly reduce your costing and give a much-needed financial injection into your new business.

Vat is truly an efficient way to ensure that tax leakage is reduced in a seamless manner. You also should go for starting a business in a vat friendly european country whilst importing services or goods from a member country that also follows vat. By setting up a small business in a eu vat state you are able to certainly retain control over your costs while plugging your own revenue leaks on services or goods where vat has already been charged.