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

If you want to start a new small business in any European country then you should open up a business inside 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 apply for a vat refund to recoup your money vies.

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 while also plugging tax leaks. The process has become 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 part of the european vat system.

You can begin a new business in any eu vat state or country and start importing goods to 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 the goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country then you may 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 as part of 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 has already been charged you’ll be able to simply fill out the required 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 might not able to learn allin regards to the latest eu vat rules it will be better if you allow an expert vat agent to reclaim vat on your behalf.

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 which have adopted vat usually have 3 vat rates. The first is the normal vat rate of around 15 to 25% on many goods. The second is the reduced 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 another country then this is probably large amounts, and recovering this amount can easily reduce your costing and provide a much-needed financial injection into your new business vies.

Vat is truly an efficient solution to ensure that tax leakage is reduced in a seamless manner. You too should go for starting a small business in a very vat friendly european country while also importing services or goods from a member country that also follows vat. By setting up a business inside 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.