Start a small business in a eu vat state to retain control of your costs

If you want to start a fresh business in a European country you then should open up a business in a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and even if you do find yourself paying vat more often than once then you can also obtain a vat refund to recover your money vies.

Through the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted over to vat or value added tax as a method of collecting tax in a transparent manner while also plugging tax leaks. The process has been largely successful and this common method of charging tax on services and goods has also facilitated smooth imports and exports between countries that form part of the european vat system.

You can start a new business in a eu vat state or country and start importing goods to your own country. You’ll however be charged the appropriate customs or excise duties and might also need to pay import vat according to the classification of your goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration to turn into a vat registered trader or dealer. This will clear the path for you to get your own vat no, charge appropriate vat rates in your vat invoice as well as present regular vat returns to your tax authorities. You’ll now truly be a part of your eu vat system.

However, there are several benefits of remaining in the europa vat system. In case you have imported goods originating 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. Just in case you or your staff have paid vat during trade events or on any 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 might not able to learn almost allin regards to the latest eu vat rules it would be better if you allow an expert vat agent to reclaim vat in your stead.

Your vat agent also needs to file your vat returns on time as well as ensure that your vat refund applications are handled within the time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The very first is the normal vat rate of around 15 to 25% on most goods. Second is the lower vat rate of about 1 to 6% on specific goods while the third is products which are vat exempt. If you’ve paid vat in a foreign country then this is probably large amounts, and recovering this amount can certainly lower costing and give a much-needed financial injection to your new business vat verification.

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