Learn all about exempt vat category in european states

Most European countries have adopted vat or value added tax as a way of taxing goods and services and you need to 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 case you plan to start a business in a European country. This move will help you slot your items correctly in the designated vat classifications, which in turn will help enhance the bottom-line of your respective business. Once you start your personal manufacturing or trading business and import goods or services to your own country then you’ll need 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 http://vatvalidation.com/vat you will need to get vat registered so that you can start charging vat through a vat invoice. The threshold limit varies in different eu states and in 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 your clients you also need to find out about existing vat rates in your own country as well as in other countries. Thus, information about eu vat and also uk vat is important, especially when your company is located in Britain. Most countries have 3 different types of vat. Almost all services and products come under the regular vat rate that varies from 15-25%. Then there are certain products and services 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 may be refunded with a vat reclaim.

Additionally, there are 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 element of hidden vat inside these goods or services, 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.

Moreover certain products such as postage stamps, medical equipments, and also lotteries or gambling services are exempt from vat. If your array of activities or imports falls under some of these sections you would then be exempt from paying or collecting any vat although you may also not be able to request a vat refund if vat was already paid for the same in another eu country.

For those who have trouble in finding out vat rates in several countries including 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 learn information about exempt vat category in european states, which in turn could also prove to be beneficial for your business.