Most Countries in europe have adopted vat or value added tax as a way 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 necessary that you learn about vat rates including vat exemption in the event you intend to start up a business in any 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. Once you start your personal manufacturing or trading business and import goods or services to your own country then you will vat number search need to pay customs and excise duties in line with the form of imports. When you cross the vat threshold limit set up by your country then you will need to get vat registered to be able to start charging vat through a vat invoice. The threshold limit varies in different eu states and Britain the limit of £70,000 is achieved when your taxable sales cross that amount during the past Twelve months.
However, before you begin 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 as well as uk vat is crucial, especially if your business is situated 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 services and products 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 service or product can be refunded using a vat reclaim.
Additionally, there are certain goods and 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 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, and others have exemption from vat.
In addition certain products such as postage stamps, medical equipments, and also lotteries or gambling services are exempt from vat. But 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 be unable to ask for 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 learn all about exempt vat category in european states, which in turn may also turn out to be beneficial for your business.