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

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

Over the years many European countries including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as a method of collecting tax in a transparent manner whilst plugging tax leaks vat verification
. The process has been largely successful and also this common method of charging tax on goods and services has facilitated smooth imports and exports between countries that form part of the european vat system.

You can begin a new business in a eu vat state or country and begin importing goods into your own country. You will however be charged the suitable customs or excise duties and might need to pay import vat depending on the classification of your 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 clear the path for you to get your own 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 many advantages of staying in the europa vat system. In case you have imported goods originating from a member vat country where vat was already charged then you can simply fill out the necessary vat form to claim a vat refund. 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 may not be in a position to learn allin regards to the latest eu vat rules it will be better if you allow a specialist vat agent to reclaim vat in your stead.

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 normally have 3 vat rates. The very first is the standard vat rate of around 15 to 25% on most goods. 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 have 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 to your new business.

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