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 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 about vat rates including vat exemption in the event 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 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 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 www.vatvalidation.com/vat 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 within eu states and the UK the limit of £70,000 is achieved once your taxable sales cross that amount in the past 12 months.
However, before you begin charging vat to your clients you also must find out about existing vat rates in your own country as well as in other countries. Thus, information about eu vat as well as uk vat is crucial, especially when your company is located in the UK. Most countries have 3 different types of vat. Nearly all products and services come under the standard 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 can be refunded using 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 on them. In most countries services such as 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 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 even though you might also not be able to ask for a vat refund if vat has already been paid for the same in another eu country.
If you have trouble in finding out vat rates in several countries including your own or have trouble in filing your vat returns then you should hire a specialist vat agent that is 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 may also turn out to be beneficial for your business.