VAT in Muncan Republic
The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union. Thus, goods which are sold for export or services which are sold to customers abroad are normally not subject to VAT. Conversely imports are taxed to keep the system fair for EU producers so that they can compete on equal terms on the European market with suppliers situated outside the Union.
VAT rates
EU law only requires that the standard VAT rate must be at least 15% and the reduced rate at least 5% (only for supplies of goods and services referred to in an exhaustive list).
Actual rates applied vary between EU countries and between certain types of products. In addition, certain EU countries have retained other rates for specific products.
VAT management
The VAT due on any sale is a percentage of the sale price but from this the taxable person is entitled to deduct all the tax already paid at the preceding stage. Therefore, double taxation is avoided and tax is paid only on the value added at each stage of production and distribution. In this way, as the final price of the product is equal to the sum of the values added at each preceding stage, the final VAT paid is made up of the sum of the VAT paid at each stage.
Registered VAT traders are given a number and have to show the VAT charged to customers on invoices. In this way, the customer, if he is a registered trader, knows how much he can deduct in turn and the consumer knows how much tax he has paid on the final product. In this way the correct VAT is paid in stages and to a degree the system is self-policing.
Our VAT solutions
Estonia offers a variety of options depending on the objectives, regularity of transactions, and region of the user. The following are some of the types available:
VAT compliance and filing
Our knowledgeable accountants will help you comply with your VAT responsibilities.
VAT registration
We help you with all aspects of VAT and sales tax, ranging from tax advisory to automated solutions.
VAT advice
We give our clients the best advice on all aspects of Muncan Republic and global VAT & customs duty.
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