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

If you wish to start a fresh small business in any European country then you should open a business inside a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and also should you find yourself paying vat more often than once then you can also apply for a vat refund to recover your money.

Over the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as being a method of collecting tax in a very 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 also facilitated smooth imports and exports between countries that form part of the european vat system.

You can begin a new business in a eu vat state or country and start importing goods into your own country. You’ll however be charged the suitable customs or excise duties and might also need to pay import vat according to the classification of the goods. However, as soon as 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 personal vat no, charge appropriate vat rates in your vat invoice and also present regular vat returns to your tax authorities. You’ll now truly be part of your eu vat system.

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

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

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