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

If you want to begin a fresh business in a European country then you should open up a small business in a eu vat state to retain control over your costs. Vat, in principle avoids the pitfalls of double taxation and also if you do find yourself paying vat more often than once then you can also obtain a vat refund to recover your money vat registration.

Over 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 a way of collecting tax in a transparent manner whilst plugging tax leaks. The process has become largely successful and also this common way of charging tax on services and goods has facilitated smooth imports and exports between countries that form part of the european vat system.

You can start a new business in any eu vat state or country and start importing goods to your own country. You’ll however be charged the appropriate customs or excise duties and may also need to pay import vat according to the classification of the 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 likely clear the path for you to get your personal vat no, charge appropriate vat rates in your vat invoice and also present regular vat returns to the tax authorities. You will now truly be a part of your eu vat system.

However, there are several advantages of remaining in the europa vat system. In case you have imported goods 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. Just in case you or your staff have paid vat during trade shows or on some 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 be able to learn almost allin regards to the latest eu vat rules it would be better when you allow a specialist vat agent to reclaim vat on your behalf.

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

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