Through the years many Countries in europe including Hungary, Germany, Greece, Spain, Italy, UK, Sweden, Poland, etc have shifted to vat or value added tax as a way of collecting tax in a very transparent manner while also plugging tax leaks. The process has been largely successful and also this common way 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 begin a new business in an eu vat state or country and begin importing goods into your own country. You’ll however pay the appropriate customs or excise duties and may 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 clear the path to get your personal vat no, charge appropriate vat rates as part of your vat invoice as well as present regular vat returns to your tax authorities. You’ll now truly be a part of your eu vat system. For info in Swedish Klicka har..

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 has already been charged then you can 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 can also be claimed back from that country provided all documentary proof is shown. As you might not be in a position to learn almost all about the latest eu vat rules it will be better when you allow an expert vat agent to reclaim vat in your stead.

Your vat agent should also file your vat returns on time and also make sure that your vat refund applications are handled well within the time limit. Most countries in Europe that have adopted vat usually have 3 vat rates. The first is the normal vat rate of around 15 to 25% on many goods. Second is the lower vat rate of about 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 lower costing and give a much-needed financial injection into your new business.

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