Understanding the concepts of VAT tax in EU. On Vacue.us you can read all about it.
The European Union Value added tax which is commonly abbreviated as the EU VAT of EU VAT Tax is a form of value added tax which is levied on the goods that are purchased by the customers under the legislation of European Union member states.
The EU VAT Tax is levied on the articles that are bought on the end of the consumers. The VAT is generally levied on the goods that are imported or exported under the legislations of the EU. For the immobile or the mobile goods that are introduced into the EU from other countries for the purpose of selling or for general consumption, they need to be registered with an EU VAT.
The VAT that is levied on these goods is also termed as input tax when the EU VAT Tax is to be paid by the businessman to the suppliers as well. The output vat on the other hand is termed to the VAT that is levied on the articles which are bought by the consumers.
The tax rates are independent in the member states of EU but are generally known to hover around the range of 15% to 25% in various states. Although the states have complete jurisdiction over the tax rates, there are a number of factors that govern the likeliness of the rates. For instance the contribution of the EU member state on to the annual revenue of EU and the funding available plays a major role in deciphering the tax rates which are to be predominant in that particular EU state.