Several EU countries have embraced VAT or VAT over the past decade to ensure that trading between such countries proceeds on a common platform. Countries like the UK, Spain, Greece, Italy, Germany, France, Poland, Netherlands, Sweden, and Hungary, among others have adapted VAT and most countries have also moved to one common currency, i.e. the Euro. This move has facilitated smoother trading between these countries 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 mandatory to keep a tight leash on your costs.
Any services or goods that you import into your country will attract customs or excise duties as well as import VAT, dependant on its classification. To be able to charge VAT to the customers, you'll have to turn into a VAT registered dealer, which may be done as soon as you cross the VAT threshold in taxable sales. You can now make a VAT invoice inside your country and charge the applicable VAT rates to your customers. Additionally, you will have to file regular VAT returns based on your sales and purchases.
However, if you are based in any European country that follows VAT system and also have imported goods to your country where VAT has already been 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 was already paid by applying for your VAT refund inside the original country. In case you or your workers have attended trade shows or paid VAT on any other services overseas, then you can still file for a VAT reclaim to recuperate the amount of VAT paid.
The EU VAT rates various EU countries range between 15 to 25%, while special VAT rates on certain goods and services range from 1 to 6%. There are also certain goods that are VAT exempt. These rates can easily make a big difference in the product costs and when you are able to recover any tax which has already been paid then this can make a positive influence on your business bottom-line. A professional and trusted VAT agent can surely help you. You should look for an agent that only takes fees or commissions from VAT amounts recovered instead of charging a set fee.
Many countries in Europe have opted for a uniform tax system on products or services, and this is good news if you plan to start a whole new business in such a country. Your costing process becomes simpler and you will surely have the ability to recover VAT amounts which may have been charged previously. However, you need to surely confirm all European VAT rules before importing goods into an EU State so as to defend your fledgling business from any financial shocks.
![[Valid RSS feed]](http://www.fyifiles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
