In matters of tax eu countries have mostly opted for vat

Introduced first in France in 1954, VAT or value added tax was slowly implemented in most countries in Europe Www.vatcontrol.com
. in the future years as well as in matters of tax eu countries have mostly opted for 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 globe usually been dependent on traditional sales tax systems as a way of collecting revenues through taxes. However, the system was not perfect and goods along with 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 amount of taxes when they issue a vat invoice to their clients and collect the tax back. Regular vat returns make sure that traders provide all vat details to their respective vat departments.

Most eu countries including Denmark, Greece, Sweden, France, Italy, Poland, Germany, Spain, Ireland, Hungary, the United Kingdom, Portugal, and Austria, among others have opted to stay with vat while other countries around the world too have shifted 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 UK have 3 basic vat rates which might be charged whenever goods or services are sold. The standard rate of vat ‘s what is normally charged on many goods and services, which range between 15-25%. Other products or services fall into the reduced vat rate of 1-5%, while a few others fall under the zero vat rate category. Additionally, there are certain vat exempt products or services where no vat is charged and no vat can be claimed either. Each country has 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 adhere to the vat system need to turn into vat registered traders in their own country. This is often 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 should 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 to the UK. When a trader gets vat registration then a business will need to issue vat invoices mentioning vat rates clearly and even file regular vat returns. However, any vat paid in a foreign country could be claimed back by a trader by opting for vat refunds, which in turn would help avoid double taxation and give a cash flow boost for the trader?s business.

Vat continues to be openly welcomed by most eu countries like the UK, and traders can quickly understand the system when they become vat registered traders. An expert vat agent on hand can 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 opted for vat and also this unified system helps many traders in such countries to quickly recover previously paid taxes.