Validate all european vat rules before importing goods into an EU State

Starting a new business inside of a vat enabled European State or country will only 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 cost is kept at a minimum and therefore the issue of double taxation does not eat into your profits.

Several EU countries have embraced vat or value added tax over the past decade so 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 many countries in addition have vatvalidation.com moved to a common currency, i.e. the Euro. This move has facilitated smoother trading between these countries and if you want to start a business in a EU country that has changed over to vat then appropriate comprehension of eu vat rules is required to keep a decent leash on your own costs.

Any goods or services which you import in your country will attract customs or excise duties or even import vat, dependant on its classification. To be able to charge vat to the customers, you will also have to turn into a vat registered dealer, which can be done once you cross the vat threshold in taxable sales. Now you can make a vat invoice in your country and charge the applicable vat rates to your customers. Additionally, you will need to file regular vat returns based on the sales and purchases.

However, if you’re located in any european country that follows vat system and have imported goods to your country where vat was already paid from the original country or used services in a country where vat may be paid then you can reclaim the vat amount. You are able to claim vat amount on goods where vat has already been paid by applying for a vat refund inside the original country. In case you or your employees have attended trade events or paid vat on some other services in another country, you’ll be able to still apply for a vat reclaim to recuperate the amount of vat paid.

The european vat rates various eu countries range between 15 to 25%, while special vat rates on certain products or services vary from 1 to 6%. There are also certain goods that are vat exempt. These rates can make a huge difference in the product costs and when you are able to recover any tax that has previously been paid this can make a positive influence on your enterprise bottom-line. A professional and trusted vat agent can surely help you out. Make sure you look for a broker that only takes fees or commissions from vat amounts recovered rather than charging a flat fee.

Many countries in Europe have chose a uniform tax system on products or services, and this is good news if you intend to begin a whole new business in that country. Your costing process will become simpler and you’ll surely be able to recover vat amounts that have already been charged previously. However, you need to surely confirm all european vat rules before importing goods into an EU State in order to defend your fledgling business from the financial shocks.