In matters of tax eu countries have mostly chosen vat

Introduced first in France in 1954, VAT or value added tax was slowly implemented generally in most European countries www.vatcontrol.com
. in the future years and in matters of tax eu countries have mostly chosen vat is a taxation system that bypasses the possible risks with double taxation while also ensuring better adherence to tax payments.

Most countries around the world usually depended on traditional sales tax systems as a way of collecting revenues through taxes. However, the system wasn’t perfect and goods as well as services were taxed several times under this system. Vat is applicable every-time specified goods or services change hands and vat registered traders simply get back the paid tax amount once they issue a vat invoice to their clients and collect the tax back. Regular vat returns ensure that traders provide all vat details thus to their respective vat departments.

Most eu countries including Denmark, Greece, Sweden, France, Italy, Poland, Germany, Spain, Ireland, Hungary, the UK, Portugal, and Austria, amongst others have opted to stay with vat while other countries around the world too have moved to this process of collecting taxes on goods and services. Although vat rules differ slightly in various countries, the majority of them do remain similar in principle to other countries although vat rates on similar items might differ.

Most eu countries such as the United kingdom has 3 basic vat rates which might be charged whenever services or goods are sold. The standard rate of vat ‘s what is usually charged on many goods and services, and these range between 15-25%. Other products or services fall into the lower vat rate of 1-5%, while several others fall into the zero vat rate category. There are also certain vat exempt goods and services where no vat is charged and no vat could be claimed either. Each country possesses its own vat rate classifications where a large number of products or services are segregated according to their vat rates.

Traders that are looking to follow the vat system need to become vat registered traders in their country. This can be achieved by crossing the vat threshold limit set by their country. In this particular vat tax eu countries too have various threshold limits and traders might need to appoint a vat agent with good knowledge of eu vat and uk vat rules, particularly if they import goods or services from member eu countries into the UK. Once a trader gets vat registration then the business will have to issue vat invoices mentioning vat rates clearly and even file regular vat returns. However, any vat paid in a foreign country may be claimed back by a trader by choosing vat refunds, which often would help avoid double taxation and give a cash flow boost for the trader?s business.

Vat has been openly welcomed by most eu countries including the UK, and traders can quickly comprehend the system once they turn into vat registered traders. An expert vat agent readily available may also guide them during calculations and filing of vat returns so as to reclaim any previously paid vat. In matters of tax eu countries have mostly chosen vat and this unified system has helped many traders in such countries to quickly recover previously paid taxes.