Learn all about exempt vat category in european states

Most European countries have adopted vat or value added tax as a method of taxing products or services and you should certainly learn about exempt vat category in european states. Most countries exempt vat from certain goods or services that could pose a financial burden for the public or needy people.

It is necessary you learn all about vat rates including vat exemption in the event you intend to start a business in any European country. This move will help you slot your items correctly in the designated vat classifications, which can help improve the bottom-line of your business. Once you start your own manufacturing or trading business and import goods or services into your own country then you’ll need 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 when your taxable sales cross that amount during the past 12 months.

However, before you start charging vat to your clients you also must find out about existing vat rates throughout your home country and other countries. Thus, knowledge about eu vat as well as uk vat is crucial, especially when your business is located in Britain. 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 certain services and products that come 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 can be refunded using a vat reclaim.

There are also certain products or services that typically 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 many countries services like insurance, banking, medical including hospitals, education, and social security, among 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 any 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.

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 professional vat agent that’s also conversant in the latest customs, excise and vat rules. This will help you to understand all about exempt vat category in european states, which in turn may also prove to be beneficial for your organization.