Hi ! Hope this will help
need to think 2 different operations. 1) Sales within EU with VAT and 2) sales to customer outside EU and ship out outside EU by proof (you can sell to customer outside EU with VAT too and this case this is customer decision to take VAT compensation when item leave EU).
If you assemble the item within EU you warehouse keep items with VAT. If you import items and move thru custom - your item with VAT. If you import item and do not move thru custom (keeping the item within custom warehouse (special control zone or you will issue the certificate (this case you can't sell the item, just keep it)) - item without VAT.
Let say 1 item cost 1200 VAT 200 by bookkeeping record (warehouse assets). If you ship out outside EU you need to export (custom doc is key proof of export), and the invoice will be without VAT. Export invoice cost can be (possible) 1100 VAT 0. (Just sample, need not to discuss margin in details, but in this case margin is 100 - 1100 w/o VAT - 1000 w/o VAT stock price). Company will receive payment 1100 w/o VAT. What about taxation ? You will have VAT debit EUR 200 and margin EUR 100. VAT debit your bookkeeper will record and if no further operation (VAT will balance within bookkepping of by the quarter) you will receive compensation by goverment next quarter. Margin will tax by the year total margin result (you salary and other expenses will deduct from margin
so, 99% companies in Europe do not pay margin tax at all.)
OK, also you can trade without VAT if you will ship out item which are not EU custom cleared, let say EU company sell something directly from India. You will issue invoice 1100 w/o VAT and ship out 1100 w/o VAT and buy from India supplier w/o VAT 500. This case you need not custom doc, just should India shipper sent to the customer outside EU. Please, keep attention that supplier and shipper can (should) be different. But, as taxation movement, India authority will wish to have something when export from India .
need to think 2 different operations. 1) Sales within EU with VAT and 2) sales to customer outside EU and ship out outside EU by proof (you can sell to customer outside EU with VAT too and this case this is customer decision to take VAT compensation when item leave EU).
If you assemble the item within EU you warehouse keep items with VAT. If you import items and move thru custom - your item with VAT. If you import item and do not move thru custom (keeping the item within custom warehouse (special control zone or you will issue the certificate (this case you can't sell the item, just keep it)) - item without VAT.
Let say 1 item cost 1200 VAT 200 by bookkeeping record (warehouse assets). If you ship out outside EU you need to export (custom doc is key proof of export), and the invoice will be without VAT. Export invoice cost can be (possible) 1100 VAT 0. (Just sample, need not to discuss margin in details, but in this case margin is 100 - 1100 w/o VAT - 1000 w/o VAT stock price). Company will receive payment 1100 w/o VAT. What about taxation ? You will have VAT debit EUR 200 and margin EUR 100. VAT debit your bookkeeper will record and if no further operation (VAT will balance within bookkepping of by the quarter) you will receive compensation by goverment next quarter. Margin will tax by the year total margin result (you salary and other expenses will deduct from margin
so, 99% companies in Europe do not pay margin tax at all.)OK, also you can trade without VAT if you will ship out item which are not EU custom cleared, let say EU company sell something directly from India. You will issue invoice 1100 w/o VAT and ship out 1100 w/o VAT and buy from India supplier w/o VAT 500. This case you need not custom doc, just should India shipper sent to the customer outside EU. Please, keep attention that supplier and shipper can (should) be different. But, as taxation movement, India authority will wish to have something when export from India
.