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

If you wish to start a fresh small business in any European country you then should open a business in a eu vat state to retain control of your costs. Vat, in principle avoids the pitfalls of double taxation and even should you find yourself paying vat more often than once then you can certainly also obtain a vat refund to recoup your money check vat number.

Through the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted over to vat or value added tax as being a method of collecting tax in a very transparent manner whilst plugging tax leaks. The method has become largely successful and also this common way of charging tax on goods and services has also facilitated smooth imports and exports between countries that form section of the european vat system.

You can begin a new business in a eu vat state or country and begin importing goods to your own country. You’ll however pay the suitable customs or excise duties and might also need to pay import vat depending on the classification of your goods. However, once your taxable sales cross the vat threshold limit set by the particular eu country you might need vat registration in becoming a vat registered trader or dealer. This will clear the path for you to get your personal 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 a part of your eu vat system.

However, there are many benefits of staying in the europa vat system. If you have imported goods originating from a member vat country where vat was already charged you’ll be able to simply fill out the necessary vat form to claim a vat refund. Just 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 might not be able to learn all about the latest eu vat rules it will be better if you allow a specialist vat agent to reclaim vat on your behalf.

Your vat agent should also file your vat returns on time as well as make sure that your vat refund applications are handled well within time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on most goods. The 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 another country then this is probably large amounts, and recovering this amount can certainly lower costing and give a much-needed financial injection to your new business vat registration.

Vat is really an efficient way to ensure that tax leakage is reduced in a seamless manner. You also should go for starting a business in a very vat friendly european country while also importing goods or services from a member country which also follows vat. By setting up a small business in a eu vat state you are able to certainly retain control over your costs while plugging your revenue leaks on services or goods where vat has already been charged.