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 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 ensure that your costs are kept at a minimum and therefore the issue of double taxation doesn’t eat in your profits.

Several EU countries have embraced vat or vat over the past decade to ensure that trading between such countries proceeds on a common platform. Countries like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, amongst others 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 if you want to start a business in a EU country which has changed to vat then appropriate knowledge of eu vat rules is mandatory for keeping a decent leash on your costs.

Any goods or services which you import into your country will attract customs or excise duties as well as import vat, dependant on its classification. To be able to charge vat to your customers, you’ll need 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 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 based on the sales and purchases.

However, if you’re based in any european country that follows vat system and also have imported goods to your country where vat has already been paid from the original country or have used services in a country where vat has been 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 in the original country. In case 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 eu vat rates various eu countries range between 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 easily make a big difference in the product costs and when you can recover any tax which has previously been paid this can make a positive impact on your business bottom-line. A professional and trusted vat agent can surely help you out. Make sure you look for 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 great news if you plan to begin a new business in that country. Your costing process will become simpler and you will surely be able to recover vat amounts which may have been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State so as to defend your fledgling business from any financial shocks.