Managing Value Added Tax (VAT) in the European Union (EU) can be complex for businesses, especially those new to the market or expanding across borders. VAT compliance is crucial to avoid penalties, added costs, and administrative issues. Here are some dos and don’ts for businesses operating within the EU:
- Do understand the basics of VAT and how it works.
- Don’t assume VAT rates are the same across the EU.
- Do register for VAT when necessary based on sales thresholds in each country.
- Don’t neglect VAT invoices; ensure they contain all required details.
- Do keep meticulous records of all VAT transactions.
Source Taxually
