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

Starting a new business inside of a vat enabled European State or country will only bear fruit should 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 the very least and that 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 so that trading between such countries proceeds on a common platform. Countries such as the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others have adapted vat and many countries have also moved to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you would like 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 own costs search vat number.

Any services or goods 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 your customers, you will also have to turn into a vat registered dealer, which may be done once 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 the customers. Additionally, you will need to file regular vat returns based on the 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 in the original country or have used services in a country where vat has been 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 case you or your workers have attended trade events or paid vat on any other services overseas, you’ll be able to still file for a vat reclaim to recuperate the amount of vat paid.

The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain products or 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 are able to recover any tax which has previously been paid this can make a positive impact on your business bottom-line. A professional and trusted vat agent can surely help you out. You should seek out an agent that only takes fees or commissions from vat amounts recovered rather than charging a set fee vat registration.

Many countries in Europe have chose a uniform tax system on products or services, which is good news if you intend to start a new business in that country. Your costing process becomes simpler and you’ll surely have the ability to recover vat amounts which may have already been charged previously. However, you should surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from the financial shocks.