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

If you wish to start a fresh business in a European country then you 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 than once then you can certainly also obtain a vat refund to recoup your money.

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 method of collecting tax in a transparent manner while also plugging tax leaks. The method has become largely successful and also this common method of charging tax on goods and services has also 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 begin importing goods to your own country. You will however pay the suitable customs or excise duties and may also 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 then you may need vat registration to turn into a vat registered trader or dealer. This will likely clear the path for you to get your own vat no, charge appropriate vat rates in your vat invoice as well as present regular vat returns to the tax authorities. You’ll now truly be part of your eu vat system.

However, there are many benefits of staying 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. In case you or your staff have paid vat during trade shows or on any 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 in a position to learn almost allin regards to the latest eu vat rules it will be better if you allow an expert vat agent to reclaim vat in your stead.

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

Vat is truly a powerful solution to ensure that tax leakage is reduced in a seamless manner. You too should opt for starting a small business in a very vat friendly european country while also importing goods or services from a member country which also follows vat. By opening up a business inside a eu vat state you are able to certainly retain control over your costs while plugging your own revenue leaks on goods or services where vat was already charged.