Most European countries have adopted vat or value added tax as a way of taxing products or services and you should certainly learn all about exempt vat category in european states. Most countries exempt vat from certain services or goods that may pose a financial burden for the public or needy people.
It is important you learn about vat rates including vat exemption in case you plan to start 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. Once you start your personal manufacturing or trading business and import services or goods into 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 to be able to 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 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, information about eu vat and also uk vat is crucial, especially when your business is located in the UK. Most countries have 3 different categories of vat. Almost all products and services come under the regular vat rate that varies from 15-25%. Then there are vatvalidation.com/vat 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 product or service may be refunded using 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 goods or services, buyers or sellers cannot claim any vat back built in. In many countries services like 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. But if your array of activities or imports falls under some of these sections then you would be exempt from paying or collecting any vat although you may 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 in finding out vat rates in several countries as well as your own or have trouble in filing your vat returns then you 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 inturn could also turn out to be beneficial for your organization.