- Understanding VAT and Its Framework: Value Added Tax (VAT) is a consumption tax implemented in over 120 countries, including EU Member States. Intra-Community VAT pertains to transactions between taxable persons (businesses) within the EU, with regulations set by the VAT Directive that allows for some member state flexibility in implementation.
- VAT Rates and Compliance Obligations: Each EU country has different VAT rates, with a minimum standard rate of 15% and reduced rates not below 5%. Businesses engaging in taxable operations must register for a VAT number, file VAT returns, and may need to appoint a fiscal representative to ensure compliance with local VAT obligations.
- Special Provisions and Reverse Charge Mechanism: Intra-Community VAT includes provisions for VAT exemptions, such as exports and sales between EU countries to businesses. The reverse charge mechanism allows foreign companies to avoid VAT registration in certain situations, shifting the responsibility for VAT payment to the local customer.
Source Easytax
Click on the logo to visit the website
Latest Posts in "European Union"
- ECJ C-121/24 (Vaniz) – AG Opinion – Joint VAT liability requires existing debtor; no liability post-liquidation
- ECJ/General Court VAT Cases – Pending cases
- ECJ VAT Cases decided in 2025
- ECJ C-726/23 (Arcomet Towercranes) – Judgment – Transfer Pricing Adjustment for intra-group services subject to VAT; documentation required
- Public Consultation on Tobacco taxation – excise duties for manufactured tobacco products
