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

Starting a new business venture in 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 allow you to legally exploit all avenues to make sure that your costs are kept at a minimum and therefore the problem of double taxation does not eat in your profits.

Several EU countries have embraced vat or value added tax over the past decade to ensure 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 most countries in addition have moved to vatcheck.com/vat a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like to begin a business in a EU country which has changed to vat then appropriate knowledge of eu vat rules is required for keeping a decent leash on your costs.

Any goods or services that you import in your country will attract customs or excise duties as well as import vat, based on its classification. To be able to charge vat to your customers, you will also need to turn into a vat registered dealer, which may be done as soon as you cross the vat threshold in taxable sales. You can now come up with a vat invoice inside your country and charge the applicable vat rates to your customers. Additionally, you will need to file regular vat returns determined by your sales and purchases.

However, if you’re located in any european country that follows vat system and also have imported goods to your country where vat was already paid in the original country or used services in a country where vat may be paid you’ll be able to reclaim the vat amount. You can claim vat amount on goods where vat has already been paid by applying for your vat refund in the original country. In the event you or your workers have attended trade shows or paid vat on some other services overseas, you’ll be able to still file for a vat reclaim to recover the amount of vat paid.

The eu vat rates various eu countries range between 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 easily make a huge difference in the product costs and if you can recover any tax that has previously been paid then this can easily make a positive impact on your enterprise bottom-line. An experienced and trusted vat agent can surely help you out. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered instead of charging a set fee.

Many countries in Europe have opted for a uniform tax system on goods and services, which is great news if you plan to start a new business in such a country. Your costing process will become simpler and you’ll 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 the financial shocks.