Most Countries in europe have adopted vat or value added tax as being a method of taxing products or services and you should certainly learn about exempt vat category in european states. Most countries exempt vat from certain services or goods that could pose a monetary burden to the public or to needy people.
It is important you learn all about vat rates including vat exemption in case you plan to start up a business in any European country. This move will help you to slot your products correctly within the designated vat classifications, which in turn will help improve the bottom-line of your business. When you start your personal manufacturing or trading business and import goods or services to your own country then you will need to pay customs and excise duties in line with the form of imports. Once you cross the vat threshold limit put in place by your country you will 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 Britain the limit of £70,000 is achieved once your taxable sales cross that amount during the past Twelve months.
However, before you start charging vat to the clients you also must find out about existing vat rates throughout your home country as well as in other countries. Thus, knowledge about eu vat as well as uk vat is crucial, especially when your company is located in the UK. Most countries have 3 different categories of vat. Almost all products and services fall under the regular vat rate that varies from 15-25%. There are www.vatvalidation.com/vat certain products and services 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 with a vat reclaim.
Additionally, there are certain products or services that usually fit in the purview of social services or obligations and usually qualify as exempt vat. Although there might some element of hidden vat inside these services or goods, buyers or sellers cannot claim any vat back built in. In most countries services such as 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 also lotteries or gambling services are exempt from vat. But if your range 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 be unable to request a vat refund if vat was already paid for the same in another eu country.
For those who have trouble locating out vat rates in several countries including your own or have trouble in filing your vat returns then you should certainly hire a specialist vat agent that’s also conversant in the latest customs, excise and vat rules. This should help you to understand information about exempt vat category in european states, which in turn may also prove to be beneficial for your business.