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 is only going to bear fruit should you confirm all european vat rules before importing goods into that EU State. This move
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will allow you to legally exploit all avenues to make sure that your costs are kept at the very least and that the issue of double taxation does not eat in your profits.
Several EU countries have embraced vat or value added tax in the last 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, amongst others have adapted vat and most countries in addition have shifted to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to start a business in a EU country that 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 which you import into your country will attract customs or excise duties as well as import vat, dependant on its classification. In order to charge vat to the customers, you will also have 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 make a vat invoice in your country and charge the applicable vat rates to the customers. Additionally, you will need to file regular vat returns based on your sales and purchases.
However, if you’re located in any european country that follows vat system and also have imported goods into your country where vat has already been paid from 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 was already paid by applying for your vat refund in the original country. In case you or your workers have attended trade shows or paid vat on any other services in another country, you’ll be able to still apply for a vat reclaim to recuperate the amount 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’s also certain goods that are vat exempt. These rates can easily make a huge difference in your product costs and when you can recover any tax that has previously been paid this can make a positive influence on your enterprise bottom-line. An experienced and trusted vat agent can surely help you. Make sure you look for an agent 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 good news if you intend to begin a new business in such a country. Your costing process becomes simpler and you will surely have the ability to recover vat amounts which may have been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from the financial shocks.
