Start a small business in a eu vat state to retain control over your costs

If you want to begin a new small business in a European country you then should open a small business inside a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and also should you find yourself paying vat more than once then you can also apply for a vat refund to recoup your money.

Over the years many Countries in europe including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as a method of collecting tax in a very transparent manner while also plugging tax leaks. The method has become largely successful and this common method of charging tax on services and goods has facilitated smooth imports and exports between countries that form section 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 pay the suitable customs or excise duties and may also also need to pay import vat depending on the classification of your goods. However, as soon as your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration to turn into a vat registered trader or dealer. This will clear the path to get your personal vat no, charge appropriate vat rates as part of your vat invoice and also present regular vat returns to the tax authorities. You will now truly be part of your eu vat system.

However, there are several advantages of staying in the europa vat system. In case you have imported goods originating from a member vat country where vat was already charged you’ll be able to simply fill out 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 too can be claimed back from that country provided all documentary proof is shown. As you might not able to learn allin regards to the latest eu vat rules it will be better when you allow a specialist vat agent to reclaim vat on your behalf.

Your vat agent should also file your vat returns in time and also make sure that your vat refund applications are handled well within the time limit. Most countries in Europe that have adopted vat normally have 3 vat rates. The first is the standard vat rate of about 15 to 25% on most goods. Second is the reduced vat rate of about 1 to 6% on specific goods while the third is goods that are vat exempt. If you have paid vat in a foreign country then this is probably large amounts, and recovering this amount can certainly reduce your costing and give a much-needed financial injection to your new business.

Vat is truly a powerful solution to make sure that tax leakage is reduced in a seamless manner. You too should opt for starting a business in a vat friendly european country while also importing goods or services from a member country that also follows vat. By opening up a small business inside a eu vat state you are able to certainly retain control of your costs while plugging your revenue leaks on services or goods where vat was already charged.