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

Starting a new business venture inside of a vat enabled European State or country will only bear fruit if 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 a minimum and therefore the problem of double taxation does not eat in your profits.

Several EU countries have embraced vat or vat 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, among others vat check have adapted vat and most countries have also moved 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 over to vat then appropriate knowledge of eu vat rules is required for keeping a decent leash on your costs.

Any goods or services 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 the customers, you’ll have to turn into a vat registered dealer, which can 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 your customers. You will also have 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 to your country where vat has already been paid in the original country or have used services in a country where vat may be 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 the event you or your employees have attended trade shows or paid vat on any other services in another country, you’ll be able to still file for a vat reclaim to recuperate the quantity 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 are also certain goods that are vat exempt. These rates can make a big difference in the product costs and if you are able to recover any tax that has previously been paid this can easily make a positive influence on your business bottom-line. An experienced 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 instead of charging a flat fee.

Many countries in Europe have opted for a uniform tax system on goods and services, and this is great news if you plan to start a whole new business in that country. Your costing process will become simpler and you’ll 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.