Open up a small business in a eu vat state to retain control over your costs

 

If you want to start a new small business in any European country you then should open up a small business inside a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and even should you end up paying vat more than once then you can certainly also obtain a vat refund to recoup your money vat check.

Over 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 being a way of collecting tax in a very transparent manner while also plugging tax leaks. The process has been largely successful and also this common way of charging tax on services and goods has also facilitated smooth imports and exports between countries that form section of the european vat system.

You can start a new business in a eu vat state or country and begin importing goods to your own country. You’ll however pay the appropriate customs or excise duties and may also also need to pay import vat depending on the classification of your goods. However, as soon as 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 to get your personal vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to your tax authorities. You’ll now truly be part of your eu vat system.

However, there are many benefits of staying in the europa vat system. In case you have imported goods originating from a member vat country where vat has already been charged then you can simply fill out the necessary vat form to claim a vat refund. Just in case you or your staff have paid vat during trade events or on some 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 be in a position to learn all about the latest eu vat rules it would be better if you allow a specialist vat agent to reclaim vat on your behalf.

 

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

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