Most Countries in europe have adopted vat or value added tax as a way of taxing goods and 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 financial burden for the public or needy people.
It is important you learn all about vat rates including vat exemption in the event you intend to start a business in a European country. This move will help you slot your items correctly in the designated vat classifications, which can help improve 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 will vat number search have to pay customs and excise duties based on the type of imports. Once you cross the vat threshold limit put in place by your country then you will also need to get vat registered so that you can start charging vat by way of a vat invoice. The threshold limit varies in different eu states and the UK the limit of £70,000 is achieved when your taxable sales cross that amount during the past 12 months.
However, before you start charging vat to your clients you also need to find out about existing vat rates in your own country and other countries. Thus, knowledge about eu vat and also uk vat is crucial, especially when your company is situated in Britain. Most countries have 3 different categories of vat. Almost all services and products fall under the standard vat rate that varies from 15-25%. There are certain services and products that fall under reduced vat rates that vary 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 service or product may be refunded with a vat reclaim.
There are also certain goods and services that typically 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 goods or services, 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.
In addition 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 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.
For those who have trouble locating out vat rates in several countries as well as 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 inturn could also turn out to be beneficial for your organization.