If you want to start a fresh small business in any European country then you should open a small business in a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and even if you do end up paying vat more often than once then you can certainly also obtain a vat refund to recoup your money search vat number.
Over 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 being a method of collecting tax in a transparent manner whilst plugging tax leaks. The process has been largely successful and also this common way of charging tax on goods and services has 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 start importing goods into your own country. You will however be charged the appropriate customs or excise duties and may also also need to pay import vat depending on 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 to turn into a vat registered trader or dealer. This will likely clear the path for you to get your own vat no, charge appropriate vat rates in your vat invoice and also present regular vat returns to your tax authorities. You will now truly be 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 complete the necessary vat form to claim a vat refund. In case you or your staff have paid vat during trade shows or on any 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 able to learn almost all about the latest eu vat rules it would be better when you allow a specialist vat agent to reclaim vat on your behalf.
Your vat agent also needs to file your vat returns on time and also ensure that your vat refund applications are handled well within the time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The first is the normal vat rate of around 15 to 25% on most goods. The second is the lower vat rate of around 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you have paid vat in a foreign country then this is certainly large amounts, and recovering this amount can easily lower costing and give a much-needed financial injection to your new business vat verification.
Vat is really an efficient way to make sure that tax leakage is reduced in a seamless manner. You too should go for starting a business in a vat friendly european country while also importing services or goods from a member country which also follows vat. By setting up a business in a eu vat state you are able to certainly retain control over your costs while plugging your revenue leaks on goods or services where vat has already been charged.