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 European countries Http://vatcontrol.com
. Within the coming years as well as in matters of tax eu countries have mostly chosen vat is a taxation system that bypasses the possible risks with double taxation whilst 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 as well as services were taxed several times under this system. Vat is relevant every-time specified goods or services change hands and vat registered traders simply get back the paid tax amount once 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 United Kingdom, Portugal, and Austria, amongst others have opted to remain with vat while other countries around the globe too have moved to this method of collecting taxes on products or services. Although vat rules differ slightly in a number of countries, the majority of them do remain similar in principle to other countries even though 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 sold. The standard rate of vat ‘s what is normally charged on many products or services, and these range between 15-25%. Other goods and 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 goods and services where no vat is charged and no vat could be claimed either. Each country has its own vat rate classifications where a large number of goods and services are segregated in line with 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 can be 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 understanding 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 the business will need 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 opting for vat refunds, which in turn would help avoid double taxation and give a income boost to the trader?s business.

Vat continues to be openly welcomed by most eu countries including the UK, and traders can quickly comprehend the system when they turn into vat registered traders. An expert vat agent readily available 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 this unified system helps many traders in such countries to quickly recover previously paid taxes.