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 being a way of collecting tax in a transparent manner whilst plugging tax leaks. The process has become largely successful and this common method of charging tax on goods and services has facilitated smooth imports and exports between countries that form section 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 will however be charged the suitable customs or excise duties and might also need to pay import vat according to 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 in becoming 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 and also present regular vat returns to the tax authorities. You will now truly be part of your eu vat system. For info in Swedish Klicka har..

However, there are several benefits of remaining in the europa vat system. If you have imported goods from a member vat country where vat was already charged you’ll be able to simply complete the required vat form to claim a vat refund. Just in case you or your staff have paid vat during trade events 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 in a position to learn allin regards to the latest eu vat rules it would be better if 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 make sure that your vat refund applications are handled well 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 about 15 to 25% on most goods. The second is the lower vat rate of around 1 to 6% on specific goods whilst the third is products which are vat exempt. If you have paid vat in a foreign country then this is certainly large amounts, and recovering this amount can easily reduce your costing and provide a much-needed financial injection to your new business.

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