Are your VAT returns due? As a business operating in the European Union your goods and services will be subject to value added tax. Value Added Tax (VAT) can be an onerous burden for many businesses in terms of time and cost, however there are accountants who can help you with this line of services.
In this post we look at the benefits of having a VAT accountant at hand to help you with your VAT returns.
What Is VAT?
VAT is an acronym for Value Added Tax. It is a tax which is applied to goods and services in the European Union (EU) and many other countries. The tax is built into the price of a product or service, adding a certain percentage to the final selling price. In other words, it is a tax on business transactions. VAT is usually calculated as a percentage of the value added to a product at each stage of its manufacture or distribution.
This means that VAT is not paid by the final consumer but by all those who have had their hands on the product before it reached the market.
How much is VAT in UK?
VAT rates for goods and services
|% of VAT||What the rate applies to|
|Standard rate||20%||Most goods and services|
|Reduced rate||5%||Some goods and services, eg children’s car seats and home energy|
|Zero rate||0%||Zero-rated goods and services, eg most food and children’s clothes|
How Much is VAT In Ireland?
What is the VAT in Ireland = 23%
23% is the standard rate of VAT. All goods and services that do not fall into the reduced rate categories are charged at this rate.
How much is VAT in Germany?
The German standard VAT rate is 19.0%, which is just below the OECD average. The average VAT/GST¹ standard rate in the OECD was 19.2% as of 31 December 2020.
The previous standard VAT rate in Germany was 19% in 2019.
Benefits of VAT Services
There are many benefits to employing an outsourced VAT Services for a European Union (EU) based business including:
- Saves time for an organization
- Improves productivity
- Task is carried out by an expert – less chance of mistake in return
There are many benefits of using a VAT returns service for your business if you are based in the European Union