Learn about exempt vat category in european states

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 may pose a monetary burden for the public or needy people.

It is important that you learn all 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 business. When you start your personal manufacturing or trading business and import goods or services into your own country then you will need to pay customs and excise duties in line with the form of imports. When you cross the vat threshold limit put in place by your country then you will also need to get vat registered to be able to start charging vat by way of a vat invoice. The threshold limit varies within eu states and in Britain 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 need to 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 crucial, especially if your business is located in Britain. 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 http://vatvalidation.com/vat certain products and services that come under reduced vat rates that vary 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 products or services that usually come under 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 services or goods, buyers or sellers cannot claim any vat back built in. In most countries services like insurance, banking, medical including hospitals, education, and social security, and others have exemption from vat.

In addition certain products such as 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 you would then be exempt from paying or collecting any vat although you might also be unable 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 is also conversant in the latest customs, excise and vat rules. This should help you to understand information about exempt vat category in european states, which inturn may also turn out to be beneficial for your business.