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

Starting a new business inside of a vat enabled European State or country is only going to 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 the very least and that the issue of double taxation doesn’t 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, among others have adapted vat and most countries in addition have shifted to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you would like to begin a business in an EU country which has changed to vat then appropriate comprehension of eu vat rules is required to keep a decent leash on your own costs.

Any services or goods that you import in your country will attract customs or excise duties or even import vat, dependant on its classification. To be able to charge vat to your customers, you’ll need to turn into a vat registered dealer, which may be done once you cross the vat threshold in taxable sales. Now you can 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 your sales and purchases.

However, if you’re based in any european country that follows vat system and also have imported goods into your country where vat was already paid from the original country or have used services in a country where vat has been paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat was already paid by applying for your vat refund inside the original country. In case you or your employees have attended trade events or paid vat on some other services in another country, then you can still file for a vat reclaim to recuperate the quantity 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 make a huge difference in the product costs and when you are able to recover any tax which has already been paid then this can easily make a positive influence on your enterprise 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.

Many countries in Europe have chose a uniform tax system on goods and services, which is good news if you plan to begin a whole new business in that country. Your costing process becomes simpler and you will surely be able to recover vat amounts that have 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 any financial shocks.