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

Starting a new business in 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 help you to legally exploit all avenues to make sure that your costs are kept at a minimum and that the problem 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 like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, among others have adapted vat and most countries have also moved to vat check a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries if you want to start a business in an EU country that has changed over to vat then appropriate knowledge of eu vat rules is required to keep a decent leash on your costs.

Any goods or services that you import into your country will attract customs or excise duties or even import vat, dependant on its classification. In order to charge vat to the customers, you will also have to turn into a vat registered dealer, which may be done as soon as you cross the vat threshold in taxable sales. Now you can make a vat invoice inside your country and charge the applicable vat rates to the customers. You will also need to file regular vat returns determined by the sales and purchases.

However, if you are located in any european country that follows vat system and also have imported goods into your country where vat has already been paid from 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 a vat refund in the original country. In case you or your employees have attended trade events or paid vat on some other services overseas, then you can still file for a vat reclaim to recuperate the amount of vat paid.

The eu vat rates various eu countries range between 15 to 25%, while special vat rates on certain goods and services vary from 1 to 6%. There’s also certain products which are vat exempt. These rates can easily make a huge difference in the product costs and if you can recover any tax which has previously been paid then 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 instead of charging a flat fee.

Many countries in Europe have opted for a uniform tax system on products or 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 which may have already been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from the financial shocks.