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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