Table of Contents
What are EU VAT regulations?
According to EU law, EU Member States are required to levy a standard VAT rate of at least 15 percent and a reduced rate of at least 5 percent. Switzerland, as a non-EU country, levies the lowest VAT rate of only 7.7 percent, followed by Luxembourg (17 percent), Turkey (18 percent), and Germany (19 percent).
Which EU country has the highest VAT?
Hungary
The EU countries with the highest standard VAT rates are Hungary (27 percent), and Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent).
Do US customers pay EU VAT?
In addition, the European Union applies VAT to sales by non-European Union-based companies of electronically supplied services to European Union-based non-business customers. U.S. companies that are covered by the rule must collect and submit VAT to EU tax authorities.
Do I charge VAT to EU customers from UK?
Which country’s VAT rules to use when charging VAT on services. If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT.
What is the biggest VAT in the world?
Brazil imposes a state tax equivalent to VAT (ICMS) This rate is imposed by each state and is subject to a limit set by the federal senate. The rates can vary from 17% to 20% (Rio de Janeiro). and the highest rate can typically reach 25%.
What country has the lowest VAT?
Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent).
Do I charge VAT on EU sold items?
VAT isn’t charged on exports of goods to countries outside the EU. In these cases, VAT is charged and due in the country of import and you don’t need to declare any VAT as an exporter. However, when exporting goods you will need to provide documentation as proof that the goods were transported outside the EU.
Do I need to charge VAT to European customers?
If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.
Which tax system is the most fair?
Supporters of the progressive system claim that higher salaries enable affluent people to pay higher taxes and that this is the fairest system because it lessens the tax burden of the poor.
What is the standard VAT rate in the EU?
Each EU country has a standard rate which applies to the supply of most goods and services. This cannot be less than 15%. One or two reduced rates may be applied to supply of specific goods and services (based on the list in Annex III of the VAT Directive ), but – in most cases – not to electronically supplied services.
What are the rules on VAT in the UK?
VAT rules and rates. UK decision to invoke Article 50 of the TEU: More information. The EU has standard rules on VAT but these rules may be applied differently in each EU country (In this case, the 28 EU member states.). You must normally pay VAT on all goods and services, up to and including the sale to the final consumer.
What are the 2015 B2C digital services VAT compliance requirements?
2015 B2C digital services VAT compliance requirements, to alleviate the need for businesses to VAT register wherever their customers are. Companies operating across the European Union (EU), may be required to register their business with a VAT number in another EU country.
What are the new EU place of supply rules for 2015?
EU: 2015 Place of Supply Changes – Overview of new rules. From 1 January 2015, supplies of telecommunications, broadcasting and electronically supplied services made by EU suppliers to private individuals and non-business customers will be taxable in the Member State of the customer.