Most European countries have adopted vat or value added tax as a method 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 for the public or to needy people.
It is important that you learn 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 to slot your items correctly in the designated vat classifications, which will help enhance 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 need to pay customs and excise duties based on the type of imports. When you cross the vat threshold limit set up by your country http://vatvalidation.com/vat you will 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 in the UK the limit of £70,000 is achieved when 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 throughout your home country as well as in other countries. Thus, information about eu vat as well as uk vat is important, especially when your business is located in the UK. Most countries have 3 different categories of vat. Almost all products and services fall under the regular 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 final 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 can be refunded with a vat reclaim.
Additionally, there are 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 component of hidden vat inside these goods or services, buyers or sellers cannot claim any vat back on them. In most countries services like insurance, banking, medical including hospitals, education, and social security, and others have exemption from vat.
Moreover certain products like postage stamps, medical equipments, and even lotteries or gambling services are exempt from vat. If your range of activities or imports falls under some of these sections then you would be exempt from paying or collecting any vat even though you might also be unable to ask for 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 as well as your own or have trouble in filing your vat returns then you should certainly hire a specialist vat agent that is also conversant in the latest customs, excise and vat rules. This should help you to understand all about exempt vat category in european states, which in turn may also turn out to be good for your organization.