Learn about exempt vat category in european states

Most European countries have adopted vat or value added tax as being a method of taxing products or 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 monetary burden for the public or needy people.

It is necessary that you learn all about vat rates including vat exemption in case you intend to start a business in a European country. This move will help you to slot your products correctly in the designated vat classifications, which will help enhance the bottom-line of your business. When you start your personal manufacturing or trading business and import goods or services into your own country then you will have to pay customs and excise duties based on the form of imports. Once you cross the vat threshold limit set up by your country you will need to get vat registered so that you can start charging vat through 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 Twelve months.

However, before you start charging vat to the clients you also need to find out about existing vat rates throughout your home country and other countries. Thus, knowledge about eu vat and also uk vat is important, especially when your company is situated in the UK. Most countries have 3 different types of vat. Almost all products and services come under the regular vat rate that varies from 15-25%. Then there are http://vatvalidation.com/vat certain products and services 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 product or service may be refunded with a vat reclaim.

There are also certain goods and services that typically fit in the purview of social services or obligations and in most cases 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 most countries services such as insurance, banking, medical including hospitals, education, and social security, among others have exemption from vat.

In addition certain products like 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 might also not be able to ask for a vat refund if vat has already been paid for the same in another eu country.

For those who have trouble locating out vat rates in several countries including your own or have trouble in filing your vat returns then you should certainly hire a professional vat agent that is 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 inturn may also turn out to be good for your business.