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

Starting a new business venture in a vat enabled European State or country is only going to bear fruit should 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 does not eat into your profits.

Several EU countries have embraced vat or vat 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 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 over to vat then appropriate knowledge of eu vat rules is mandatory for keeping a decent leash on your 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 will also need to turn into a vat registered dealer, which can be done once you cross the vat threshold in taxable sales. You can now come up with a vat invoice inside your country and charge the applicable vat rates to your customers. Additionally, you will have to file regular vat returns determined by your sales and purchases.

However, if you are based in any european country that follows vat system and have imported goods to your country where vat has already been paid in the original country or used services in a country where vat may be paid you’ll be able to reclaim the vat amount. You are able to claim vat amount on goods where vat has already been paid by applying for your vat refund in the original country. In the event you or your employees have attended trade shows or paid vat on some other services overseas, then you can still apply 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 products or services range from 1 to 6%. There are also certain products which are vat exempt. These rates can make a big difference in your product costs and if you can recover any tax which has previously 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. Make sure you seek out a broker that only takes fees or commissions from vat amounts recovered rather than charging a set fee.

Many countries in Europe have opted for a uniform tax system on goods and services, which is great news if you intend to start a whole new business in such a country. Your costing process becomes simpler and you will surely be able to recover vat amounts which may 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 the financial shocks.