Learn about exempt vat category in european states

Most Countries in europe have adopted vat or value added tax as being a way of taxing goods and 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 needy people.

It is important you learn all about vat rates including vat exemption in the event you intend to start up a business in any European country. This move will help you slot your products correctly in the designated vat classifications, which in turn can help improve the bottom-line of your respective business. Once you start your own manufacturing or trading business and import services or goods into your own country then you’ll have to pay customs and excise duties based on the form of imports. When you cross the vat threshold limit put in place by your country http://vatvalidation.com/vat you will need to get vat registered to be able to start charging vat by way of a vat invoice. The threshold limit varies in different eu states and in the UK the limit of £70,000 is achieved once your taxable sales cross that amount during the past 12 months.

However, before you start charging vat to the clients you additionally need to find out about existing vat rates throughout your home country and other countries. Thus, knowledge about eu vat as well as uk vat is important, especially if your business is situated in the UK. Most countries have 3 different categories of vat. Almost all services and products come under the standard vat rate that varies from 15-25%. Then there are certain products and services that fall 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 product or service can 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 in most cases qualify as exempt vat. Although there might some element of hidden vat inside these goods or services, buyers or sellers cannot claim any vat back on them. In many countries services like insurance, banking, medical including hospitals, education, and social security, and others have exemption from vat.

Moreover certain products such as postage stamps, medical equipments, and even lotteries or gambling services are exempt from vat. If your array of activities or imports falls under some of these sections you would then be exempt from paying or collecting any vat even though you might also not be able to request a vat refund if vat was already 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 should certainly hire a professional vat agent that’s also conversant in the latest customs, excise and vat rules. This will help you to learn all about exempt vat category in european states, which inturn may also prove to be beneficial for your organization.