- Understanding Value Added Tax (VAT) is crucial for businesses entering the EU market, as it is a consumption tax applied to the value added at each stage of production and sales, requiring compliance through registration and reporting to avoid operational hurdles.
- The article outlines the different VAT rates applicable in the EU, including standard, reduced, second reduced, zero, and livestock rates, along with detailed calculations for import and sales VAT, emphasizing the complexity of VAT compliance, especially with varying rates for different goods and services.
- VAT exemptions and zero-rated sales are explained, highlighting the differences between them, the process for obtaining VAT refunds, and the importance of consulting VAT experts for navigating the complex regulations and ensuring compliance when expanding into the European market.
Source VATai
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