Open up a business in a eu vat state to retain control of your costs

If you want to begin a new business in any European country then you should open up a small business inside a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and also should you end up paying vat more often than once then you can certainly also apply for a vat refund to recover your hard earned 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 a way of collecting tax in a transparent manner while also plugging tax leaks. The method has been largely successful and also 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 begin a new business in any eu vat state or country and begin importing goods to your own country. You’ll however pay the appropriate customs or excise duties and might 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 then you may need vat registration in becoming a vat registered trader or dealer. This will likely 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 your tax authorities. You’ll now truly be a part of your eu vat system.

However, there are several 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 then you can 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 can also be claimed back from that country provided all documentary proof is shown. As you may not in a position to learn all about the latest eu vat rules it will be better when you allow an expert vat agent to reclaim vat in your stead.

Your vat agent also needs to file your vat returns in time and also make sure that your vat refund applications are handled within the time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The first is the normal vat rate of about 15 to 25% on most goods. Second is the reduced vat rate of around 1 to 6% on specific goods whilst the third is goods that are vat exempt. If you have paid vat in another country then this is certainly a large amount, 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 way to ensure that tax leakage is reduced in a seamless manner. You too should go for starting a small business in a vat friendly european country while also importing services or goods from a member country which also follows vat. By opening up a business inside a eu vat state you can certainly retain control of your costs while plugging your own revenue leaks on services or goods where vat has already been charged.