Most European countries 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 services or goods that could pose a financial burden to the public or to needy people.
It is important that 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 within the designated vat classifications, which can help improve the bottom-line of your business. Once you start your personal manufacturing or trading business and import services or goods to your own country then you will have to pay customs and excise duties in line with the type of imports. When you cross the vat threshold limit set up by your country you will also need to get vat registered so that you can start charging vat through a vat invoice. The threshold limit varies within eu states and in Britain the limit of £70,000 is achieved when your taxable sales cross that amount during the past 12 months.
However, before you begin charging vat to your clients you also need to find out about existing vat rates throughout your home country as well as in other countries. Thus, information about eu vat as well as uk vat is crucial, especially when your business is situated in Britain. Most countries have 3 different types of vat. Almost all services and products fall under the regular vat rate that varies from 15-25%. Then there are 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 product or service may be refunded with a vat reclaim.
There are also certain goods and services that usually fit in 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.
In addition certain products like 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 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 various countries as well as your own or have trouble in filing your vat returns then you should hire a professional 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 in turn could also turn out to be good for your organization.