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

If you want to start a new business in a European country then you should open up 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 should you end up paying vat more than once then you can also obtain a vat refund to recover your hard earned 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 being a method of collecting tax in a very transparent manner whilst plugging tax leaks. The method has been largely successful and this common method of charging tax on services and goods has also facilitated smooth imports and exports between countries that form part of the european vat system.

You can begin a new business in any eu vat state or country and begin importing goods into your own country. You will however be charged 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 vatvalidation.com 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 own vat no, charge appropriate vat rates as part of your vat invoice and also present regular vat returns to your tax authorities. You will now truly be a part of your eu vat system.

However, there are many advantages of staying 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 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 almost allin regards to the latest eu vat rules it will be better when you allow an expert vat agent to reclaim vat on your behalf.

Your vat agent also needs to file your vat returns in time as well as ensure that your vat refund applications are handled well within time limit. Most countries in Europe which have adopted vat normally have 3 vat rates. The first is the normal vat rate of about 15 to 25% on many goods. The second is the reduced vat rate of around 1 to 6% on specific goods while the third is products which are vat exempt. If you’ve paid vat in a foreign country then this is certainly large amounts, and recovering this amount can easily lower costing and provide a much-needed financial injection to your new business.

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