If you want to start a new small business in any European country you then should open a small business in a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and also if you do find yourself paying vat more often than once then you can also obtain a vat refund to recoup your money.
Through the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as being a way of collecting tax in a transparent manner while also plugging tax leaks vatverification
. The method has become largely successful and also this common method of charging tax on goods and services has facilitated smooth imports and exports between countries that form part of the european vat system.
You can start a new business in any eu vat state or country and start importing goods into your own country. You’ll however be charged the appropriate customs or excise duties and may also also need to pay import vat according to the classification of the goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country then you may need vat registration in becoming a vat registered trader or dealer. This will likely clear the path for you to get your own vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to your tax authorities. You will now truly be part of your eu vat system.
However, there are many benefits of remaining in the europa vat system. In case you have imported goods originating from a member vat country where vat has already been charged you’ll be able to simply complete the required vat form to claim a vat refund. In case you or your staff have paid vat during trade events or on any other services that attract vat then such vat rates can also be claimed back from that country provided all documentary proof is shown. As you may not able to learn all about the latest eu vat rules it will be better if you allow an expert vat agent to reclaim vat on your behalf.
Your vat agent should also file your vat returns on time as well as ensure that your vat refund applications are handled within the time limit. Most countries in Europe which have adopted vat normally have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on many goods. Second is the reduced vat rate of about 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you’ve paid vat in another country then this is probably large amounts, and recovering this amount can certainly lower costing and give a much-needed financial injection into your new business.
Vat is truly a powerful solution to make sure that tax leakage is reduced in a seamless manner. You also should go for starting a small business in a very vat friendly european country whilst importing services or goods from a member country which also follows vat yoururl.com. By opening up a business inside a eu vat state you can certainly retain control of your costs while plugging your revenue leaks on services or goods where vat has already been charged.
