Confirm all european vat rules before importing goods into an EU State

Starting a new business venture 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 does not eat into your profits.

Several EU countries have embraced vat or value added tax over the past 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 have adapted vat and many countries have also www.vatvalidation.com shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to begin a business in an EU country which has changed over to vat then appropriate knowledge of eu vat rules is required to keep a tight leash on your own costs.

Any services or goods that you import in 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 have to turn into a vat registered dealer, which may 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 your customers. Additionally, you will have to file regular vat returns determined by your sales and purchases.

However, if you’re based in any european country that follows vat system and 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. You can claim vat amount on goods where vat was already paid by applying for a vat refund inside the original country. In case you or your workers have attended trade events or paid vat on some other services in another country, then you can still apply for a vat reclaim to recuperate the quantity of vat paid.

The european 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 are also certain goods that are vat exempt. These rates can make a huge difference in your product costs and when you are able to recover any tax which has already been paid 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 look for an agent that only takes fees or commissions from vat amounts recovered rather than charging a set fee.

Many countries in Europe have opted for a uniform tax system on products or services, which is good news if you intend to start a whole new business in such a 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.