Most European countries have adopted vat or value added tax as a method of taxing goods and services and you need to certainly learn about exempt vat category in european states. Most countries exempt vat from certain goods or services that could pose a financial burden to the public or to needy people.
It is important you learn about vat rates including vat exemption in case you plan to start a business in any European country. This move will help you slot your products correctly within the designated vat classifications, which in turn can help enhance the bottom-line of your business. When you start your own manufacturing or trading business and import services or goods to your own country then you’ll have to pay customs and excise duties in line with the type of imports. When you cross the vat threshold limit put in place by your country www.vatvalidation.com/vat you will also need to get vat registered to be able to start charging vat by way of a vat invoice. The threshold limit varies within eu states and the UK the limit of £70,000 is achieved when your taxable sales cross that amount in the past Twelve months.
However, before you begin charging vat to the clients you additionally need to find out about existing vat rates throughout your home country as well as in other countries. Thus, information about eu vat and also uk vat is important, especially when your business is located in the UK. Most countries have 3 different types of vat. Almost all services and products come under the standard vat rate that varies from 15-25%. There are certain services and products that come under reduced vat rates that vary from 1-6%. The final vat rate is a zero vat rate where no vat is charged by the seller although any vat, if previously paid on that service or product may be refunded using a vat reclaim.
There are also certain goods and services that typically come under the purview of social services or obligations and usually qualify as exempt vat. Although there might some component of hidden vat inside these services or goods, buyers or sellers cannot claim any vat back built in. In most countries services like insurance, banking, medical including hospitals, education, and social security, among others have exemption from vat.
Moreover certain products such as postage stamps, medical equipments, and even lotteries or gambling services are exempt from vat. But if your array of activities or imports falls under any of these sections then you would be exempt from paying or collecting any vat although you may also not be able to request a vat refund if vat has already been paid for the same in another eu country.
If you have trouble in finding out vat rates in various countries including your own or have trouble in filing your vat returns then you definitely should certainly hire a specialist vat agent that’s also conversant in the latest customs, excise and vat rules. This should help you to learn all about exempt vat category in european states, which inturn may also prove to be beneficial for your business.