In matters of tax eu countries by armallah23


									In matters of tax eu countries have mostly opted for vat

ntroduced first in France in 1954, VAT or value added tax was slowly implemented
generally in most countries in Europe. Within the coming years as well as in
matters of tax eu countries have mostly opted for vat. 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 means of collecting revenues through taxes. However, the system
wasn’t perfect and goods along with services were taxed several times under this
system. Vat is applicable every-time specified services or goods change hands
and vat registered traders simply get back the paid tax amount 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 thus to their respective vat departments.

Most eu countries including Denmark, Greece, Sweden, France, Italy, Poland,
Germany, Spain, Ireland, Hungary, the UK, Portugal, and Austria, amongst others
have opted to stay with vat while other countries around the world too have
shifted to this method of collecting taxes on products or 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 United kingdom has 3 basic vat rates which might
be charged whenever services or goods are traded. The regular rate of vat ‘s what
is usually charged on most products or services, which range from 15-25%. Other
goods and services fall under the reduced vat rate of 1-5%, while a few others fall
into 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 thousands of products or
services are segregated in line with their vat rates.

Traders that are looking to adhere to the vat system have to turn into vat
registered traders in their country. This is often achieved by crossing the vat
threshold limit set by their country. In this vat tax eu countries too have various
threshold limits and traders should appoint a vat agent with good understanding
of eu vat and uk vat rules, particularly if they import services or goods from
member eu countries to the UK. When a trader gets vat registration then the
business will have to issue vat invoices mentioning vat rates clearly as well as file
regular vat returns. However, any vat paid in another country may be claimed back
by the trader by choosing vat refunds, which often would aid in avoiding double
taxation and give a cash flow boost for the trader?s business.

Vat continues to be openly welcomed by most eu countries including the UK, and
traders can quickly comprehend the system once they turn into vat registered
traders. A professional vat agent on hand may 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 chosen vat and also this unified system
helps many traders in these countries to quickly recover previously paid taxes.

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