Most European countries have adopted vat or value added tax as a method of taxing products or services and you should certainly learn all about exempt vat category in european states. Most countries exempt vat from certain goods or services that could pose a monetary burden to the public or needy people.
It is necessary that you learn about vat rates including vat exemption in case you intend to start up a business in a European country. This move will help you to slot your items correctly within the designated vat classifications, which in turn can help improve the bottom-line of your business. When you start your own manufacturing or trading business and import goods or services into your own country then you’ll vat number search have 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 also need to get vat registered to be able to start charging vat through a vat invoice. The threshold limit varies within eu states and in the UK the limit of £70,000 is achieved once your taxable sales cross that amount during the past Twelve months.
However, before you begin charging vat to the clients you also need to find out about existing vat rates throughout your home country as well as in other countries. Thus, knowledge about eu vat and also uk vat is crucial, especially if your company is situated in the UK. Most countries have 3 different categories of vat. Nearly all products and services come under the regular vat rate that varies from 15-25%. There are certain services and products that come under reduced vat rates that cover anything from 1-6%. The last vat rate is a zero vat rate where no vat is charged by the seller although any vat, if previously paid on that product or service may be refunded with 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 many 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. If your range of activities or imports falls under any of these sections then you would be exempt from paying or collecting any vat even though you might 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 locating out vat rates in several countries as well as your own or have trouble in filing your vat returns then you definitely should 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 could also turn out to be good for your business.