A value-added tax (VAT) or goods and services tax (GST) is a popular way of implementing a consumption tax in Europe, Japan, and many other countries. It differs from the sales tax in that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.
The VAT is an alternative to a sales tax, to deal with a specific problem.
With a sales tax, a business selling goods is responsible to make a subjective decision about the intent of the buyer, one which it may not be fully competent to make. If buyers intend to consume the goods themselves, then the seller must collect a tax on the purchase price. If instead buyers intend the goods as capital goods, to be resold at a profit after adding value to them, then the seller must not collect the tax. Sellers thus have an incentive to claim that a sale is non-taxable, in order to please customers, creating an incentive to under-collect taxes.
Value Added Tax (VAT) is an indirect tax levied on the value creation or addition. Concept of VAT in Nepal was introduced in FY 2049/50 but the act was developed in BS 2050. VAT was implemented in 1998 and is the major source of government's review. It is administered by Inland Revenue Department of Nepal.
VAT Rates in Nepal
There are two rates of VAT: Normal VAT rate is 13%, some goods or services are subject to VAT at 0%. In addition some goods or services are exempt from VAT.
VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union. There are complex regulations for goods and services imported from within the EU. The default VAT rate is the standard rate, 20% since 4 January 2011. Some goods and services are subject to VAT at a reduced rate of 5% (such as domestic fuel) or 0% (such as most food and children's clothing). Others are exempt from VAT or outside the system altogether.
Under EU law, the standard rate of VAT in any EU state cannot be lower than 15%. Each state may have up to two reduced rates of at least 5% for a restricted list of goods and services. The European Council must approve any temporary reduction of VAT in the public interest.
In business, the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added. Summing value added per unit over all units sold is total value added. Total value added is equivalent to revenue less outside purchases (of materials and services). Value added is a higher portion of revenue for integrated companies, e.g., manufacturing companies, and a lower portion of revenue for less integrated companies, e.g., retail companies. Total value added is very closely approximated by total labor expense (including wages, salaries, and benefits) plus "cash" operating profit (defined as operating profit plus depreciation expense, i.e., operating profit before depreciation). The first component (total labor expense) is a return to labor and the second component (operating profit before depreciation) is a return to capital (including capital goods, land, and other property). In national accounts used in macroeconomics, it refers to the contribution of the factors of production, i.e., capital (e.g., land and capital goods) and labor, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The national value added is shared between capital and labor (as the factors of production), and this sharing gives rise to issues of distribution.
(VAT) Value Added Tax - Whiteboard Animation Explanation
published: 28 Dec 2020
What is VAT? | Back to Basics
Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. https://bit.ly/3tp28VN
00:01 – What is VAT?
00:30 – How do value-added taxes work?
02:46 – Why VAT?
Watch more of our Back to Basics videos here:
https://youtube.com/playlist?list=PLmYAE4wV1YQyRb6H1_XJWY73HJVdR6oBX
published: 02 Mar 2022
VAT Value Added Tax explained
What is VAT? How does VAT work? VAT, or Value Added Tax, is a system of indirect taxation. In this quick VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use. How does VAT work? What is reverse charge VAT? Find out in this Finance Storyteller video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to VAT
0:20 Basics of a VAT system
1:25 Value Added Tax example
3:43 VAT categories and rates
5:13 Reverse charge VAT
VAT, or Value Added Tax, is a system of indirect taxation. In this quick #VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT ...
published: 13 Dec 2016
The Problems With Value Added Tax | VAT RANT
Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
https://www.kashflow.com/uk-vat
▶ VAT rates for goods and services:
https://www.gov.uk/vat-rates
▶ What are the Most Serious VAT Problems?:
https://bit.ly/3lv99S2
▶ Free UK VAT calculator:
http://www.vatcalculator.co.uk
==========================================
#VAT #ValueAddedTax #TaxRant
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published: 11 Oct 2021
ANALYSIS: Value Added Tax
--Analyzing the policy idea of a value added tax (VAT), most prominently proposed in the 2020 election cycle by Democratic presidential candidate Andrew Yang
Do I Support Yang's Plan to Tax Automation? https://youtu.be/liG2uf5ik7w
https://www.taxpolicycenter.org/briefing-book/who-would-bear-burden-vat
Support The David Pakman Show:
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published: 15 Feb 2020
What is value added Tax malayalam | VAT in GCC
This video will clarify all your doubt's about VAT.
ADN BUSINESS CONSULTANTS
"ADN Business Consultants specializes in offering comprehensive accounting and tax-related services. Should you have any requirements in these areas, feel free to reach out to us. Stay updated with our latest developments by following our Instagram, Facebook, Twitter, and YouTube channel links provided below."
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GST REGISTRATION GUIDE: https://youtu.be/1MjXyyirSp8?si=XGpp...
published: 25 Apr 2019
Why Indonesia Keeps Raising Taxes | Value Added Tax (VAT)
Indonesia has raised its value-added tax in 2022, and an additionally increase is going to be made by 2025. But why?
Inquiries: [email protected]
Brought to you by the Behind Asian Team.
published: 23 Dec 2024
Value added tax (VAT)
The video aims at helping students understand what Value Added Tax represents and how is it paid and collected in the EU.
published: 16 Aug 2018
All you need to know about (Value added Tax) VAT in Kenya
VAT is an indirect tax paid by consumers of goods and services in Kenya. It is collected by registered businesses who act as agents for the government. This video will explain what VAT is, how it works, and the obligations of VAT-registered taxpayers.
Key Topics in this Video:
What is VAT?
How VAT Works (Input/Output Tax System)
VAT Rates
VAT Registration
Due Dates and Filing
Tax Invoices
Input Tax Deduction
eTims
Keeping Records
Time of Supply
Digital Marketplace Supplies
Deregistration for VAT
Obligations of a VAT Registered Taxpayer
VAT Payment
Electronic Tax Invoice
VAT on Imported Services
Withholding VAT
Keywords: #VAT #Kenya #Tax #Finance #Business #Accounting
published: 17 Jan 2025
Input VAT vs Output VAT | Explained
In this video, we explain Input VAT, Output VAT, and the difference between Input VAT and Output VAT. We also explain why Input VAT is an asset account and Output VAT a liability account. We explain what a VAT vendor is (who can charge and claim VAT) and when VAT is owed to and from the Revenue Authority (SARS).
VAT Vendor registration: https://youtu.be/1PoMTPWwxUk
VAT Inclusive & VAT Exclusive | Calculation Examples: https://youtu.be/qvJkup5U7WE
Check out other straightforward examples and business-related topics on our channel.
We also offer one-on-one tutorials at reasonable rates as well as other accounting and tax services. Email us and/or visit our website or FaceBook page for more info.
Connect with us:
Email: [email protected]
Our Website: https://Counttuts.com
Our Facebook P...
Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. https://bit.ly/3tp28VN
00:01 – What is VAT?
00:30 – How do value-adde...
Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. https://bit.ly/3tp28VN
00:01 – What is VAT?
00:30 – How do value-added taxes work?
02:46 – Why VAT?
Watch more of our Back to Basics videos here:
https://youtube.com/playlist?list=PLmYAE4wV1YQyRb6H1_XJWY73HJVdR6oBX
Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. https://bit.ly/3tp28VN
00:01 – What is VAT?
00:30 – How do value-added taxes work?
02:46 – Why VAT?
Watch more of our Back to Basics videos here:
https://youtube.com/playlist?list=PLmYAE4wV1YQyRb6H1_XJWY73HJVdR6oBX
What is VAT? How does VAT work? VAT, or Value Added Tax, is a system of indirect taxation. In this quick VAT tutorial, I will walk you through the concept and d...
What is VAT? How does VAT work? VAT, or Value Added Tax, is a system of indirect taxation. In this quick VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use. How does VAT work? What is reverse charge VAT? Find out in this Finance Storyteller video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to VAT
0:20 Basics of a VAT system
1:25 Value Added Tax example
3:43 VAT categories and rates
5:13 Reverse charge VAT
VAT, or Value Added Tax, is a system of indirect taxation. In this quick #VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use.
VAT is used in around 140 countries in the world. These are the basics of a VAT system:
VAT is a system of indirect taxation on the sale of goods and services to final consumers, in other words VAT is a tax on consumption.
VAT is collected in stages through what is called “the chain of supply”, as you see in the picture on the right. I will illustrate this “chain of supply” concept with numbers in the next part of the video.
VAT registered businesses charge VAT on their sales (this is called output tax) and recover VAT on their purchases and expenses (this is called input tax), and settle the difference with country tax authorities. VAT is not a cost to businesses themselves, they collect and pay it “on behalf of the government”.
VAT rates and rules are subject to change, so check with your local country tax authorities or tax advisor for any country-specific applications of the general idea, and any exceptions to the rule.
The European Union is very well known for having a well-functioning VAT system. Please be aware that although many VAT related legislation is largely standardized across the EU member states, the standard rates differ widely, and what goes into the standard versus the reduced rate category can also differ from country to country.
In this globalizing world with lots of cross-border transactions, how does VAT work in an international context? How about the Dutch training company of your Finance Storyteller that delivers training services in other EU countries? How should he apply VAT?
The main rule is that the place of supply of business-to-business services provided between two VAT-entrepreneurs within the EU, will be the country where the recipient of the services is established.
So does that mean that this training services company has to register for VAT in all EU countries where it supplies its services?
For most companies, fortunately not!
There is solution for this situation and it is called “Reverse charge” VAT!
In reverse charge VAT, there is no VAT on the invoice itself.
The recipient of the invoice self-assesses local country VAT in their monthly or quarterly VAT filing, and deducts that same amount in that VAT filing, effectively leading to a VAT charge of zero, but with two line items.
Both supplier and customer file a separate form of cross-border transactions, detailing “counterpart” VAT number and amount.
That’s how reverse charge VAT works! It greatly simplifies my administrative life.
Here’s what your Accounts Payable staff should look out for when receiving “reverse charge VAT” invoices.
The VAT amount on the invoice should be zero.
The VAT number of the supplier and the VAT number of the (correct) invoiced legal entity are mentioned.
The supplier has mentioned “Reverse charge” (in English) / “Umkehrung der Steuerschuldnerschaft” (in German) / “Autoliquidation” (in French) or “BTW verlegd” (in Dutch) on the invoice.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
What is VAT? How does VAT work? VAT, or Value Added Tax, is a system of indirect taxation. In this quick VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use. How does VAT work? What is reverse charge VAT? Find out in this Finance Storyteller video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to VAT
0:20 Basics of a VAT system
1:25 Value Added Tax example
3:43 VAT categories and rates
5:13 Reverse charge VAT
VAT, or Value Added Tax, is a system of indirect taxation. In this quick #VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use.
VAT is used in around 140 countries in the world. These are the basics of a VAT system:
VAT is a system of indirect taxation on the sale of goods and services to final consumers, in other words VAT is a tax on consumption.
VAT is collected in stages through what is called “the chain of supply”, as you see in the picture on the right. I will illustrate this “chain of supply” concept with numbers in the next part of the video.
VAT registered businesses charge VAT on their sales (this is called output tax) and recover VAT on their purchases and expenses (this is called input tax), and settle the difference with country tax authorities. VAT is not a cost to businesses themselves, they collect and pay it “on behalf of the government”.
VAT rates and rules are subject to change, so check with your local country tax authorities or tax advisor for any country-specific applications of the general idea, and any exceptions to the rule.
The European Union is very well known for having a well-functioning VAT system. Please be aware that although many VAT related legislation is largely standardized across the EU member states, the standard rates differ widely, and what goes into the standard versus the reduced rate category can also differ from country to country.
In this globalizing world with lots of cross-border transactions, how does VAT work in an international context? How about the Dutch training company of your Finance Storyteller that delivers training services in other EU countries? How should he apply VAT?
The main rule is that the place of supply of business-to-business services provided between two VAT-entrepreneurs within the EU, will be the country where the recipient of the services is established.
So does that mean that this training services company has to register for VAT in all EU countries where it supplies its services?
For most companies, fortunately not!
There is solution for this situation and it is called “Reverse charge” VAT!
In reverse charge VAT, there is no VAT on the invoice itself.
The recipient of the invoice self-assesses local country VAT in their monthly or quarterly VAT filing, and deducts that same amount in that VAT filing, effectively leading to a VAT charge of zero, but with two line items.
Both supplier and customer file a separate form of cross-border transactions, detailing “counterpart” VAT number and amount.
That’s how reverse charge VAT works! It greatly simplifies my administrative life.
Here’s what your Accounts Payable staff should look out for when receiving “reverse charge VAT” invoices.
The VAT amount on the invoice should be zero.
The VAT number of the supplier and the VAT number of the (correct) invoiced legal entity are mentioned.
The supplier has mentioned “Reverse charge” (in English) / “Umkehrung der Steuerschuldnerschaft” (in German) / “Autoliquidation” (in French) or “BTW verlegd” (in Dutch) on the invoice.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
https://www.kashflow.com/uk-vat
▶ ...
Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
https://www.kashflow.com/uk-vat
▶ VAT rates for goods and services:
https://www.gov.uk/vat-rates
▶ What are the Most Serious VAT Problems?:
https://bit.ly/3lv99S2
▶ Free UK VAT calculator:
http://www.vatcalculator.co.uk
==========================================
#VAT #ValueAddedTax #TaxRant
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👍 Tell us what you like: http://skill-builder.uk/vote
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◾ Out of respect to our channel sponsors and the wide variety of people who watch our videos, we'll remove comments that do not follow common standards of politeness and decency.
Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
https://www.kashflow.com/uk-vat
▶ VAT rates for goods and services:
https://www.gov.uk/vat-rates
▶ What are the Most Serious VAT Problems?:
https://bit.ly/3lv99S2
▶ Free UK VAT calculator:
http://www.vatcalculator.co.uk
==========================================
#VAT #ValueAddedTax #TaxRant
🌲 Skill Builder Link Tree: https://linktr.ee/skillbuilder
👍 Tell us what you like: http://skill-builder.uk/vote
📪 Ask Skill Builder: http://skill-builder.uk/send
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🛒 As an Amazon Associate, we earn from qualifying purchases
🎬 All videos: https://www.youtube.com/skillbuilderchannel/videos
💧 We Support Charity Water: https://www.charitywater.org
◾ Out of respect to our channel sponsors and the wide variety of people who watch our videos, we'll remove comments that do not follow common standards of politeness and decency.
--Analyzing the policy idea of a value added tax (VAT), most prominently proposed in the 2020 election cycle by Democratic presidential candidate Andrew Yang
D...
--Analyzing the policy idea of a value added tax (VAT), most prominently proposed in the 2020 election cycle by Democratic presidential candidate Andrew Yang
Do I Support Yang's Plan to Tax Automation? https://youtu.be/liG2uf5ik7w
https://www.taxpolicycenter.org/briefing-book/who-would-bear-burden-vat
Support The David Pakman Show:
-Become a Member: https://www.davidpakman.com/membership
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Broadcast on February 10, 2020
#davidpakmanshow #valueaddedtax #vat
--Analyzing the policy idea of a value added tax (VAT), most prominently proposed in the 2020 election cycle by Democratic presidential candidate Andrew Yang
Do I Support Yang's Plan to Tax Automation? https://youtu.be/liG2uf5ik7w
https://www.taxpolicycenter.org/briefing-book/who-would-bear-burden-vat
Support The David Pakman Show:
-Become a Member: https://www.davidpakman.com/membership
-Become a Patron: https://www.patreon.com/davidpakmanshow
-Get your TDPS Gear: http://www.davidpakman.com/gear
Engage with us on social media:
-Join on YouTube: https://www.youtube.com/channel/UCvixJtaXuNdMPUGdOPcY8Ag/join
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-Timely news is important! We upload new clips every day! Make sure to subscribe!
Broadcast on February 10, 2020
#davidpakmanshow #valueaddedtax #vat
Indonesia has raised its value-added tax in 2022, and an additionally increase is going to be made by 2025. But why?
Inquiries: [email protected]
Brought t...
Indonesia has raised its value-added tax in 2022, and an additionally increase is going to be made by 2025. But why?
Inquiries: [email protected]
Brought to you by the Behind Asian Team.
Indonesia has raised its value-added tax in 2022, and an additionally increase is going to be made by 2025. But why?
Inquiries: [email protected]
Brought to you by the Behind Asian Team.
VAT is an indirect tax paid by consumers of goods and services in Kenya. It is collected by registered businesses who act as agents for the government. This vid...
VAT is an indirect tax paid by consumers of goods and services in Kenya. It is collected by registered businesses who act as agents for the government. This video will explain what VAT is, how it works, and the obligations of VAT-registered taxpayers.
Key Topics in this Video:
What is VAT?
How VAT Works (Input/Output Tax System)
VAT Rates
VAT Registration
Due Dates and Filing
Tax Invoices
Input Tax Deduction
eTims
Keeping Records
Time of Supply
Digital Marketplace Supplies
Deregistration for VAT
Obligations of a VAT Registered Taxpayer
VAT Payment
Electronic Tax Invoice
VAT on Imported Services
Withholding VAT
Keywords: #VAT #Kenya #Tax #Finance #Business #Accounting
VAT is an indirect tax paid by consumers of goods and services in Kenya. It is collected by registered businesses who act as agents for the government. This video will explain what VAT is, how it works, and the obligations of VAT-registered taxpayers.
Key Topics in this Video:
What is VAT?
How VAT Works (Input/Output Tax System)
VAT Rates
VAT Registration
Due Dates and Filing
Tax Invoices
Input Tax Deduction
eTims
Keeping Records
Time of Supply
Digital Marketplace Supplies
Deregistration for VAT
Obligations of a VAT Registered Taxpayer
VAT Payment
Electronic Tax Invoice
VAT on Imported Services
Withholding VAT
Keywords: #VAT #Kenya #Tax #Finance #Business #Accounting
In this video, we explain Input VAT, Output VAT, and the difference between Input VAT and Output VAT. We also explain why Input VAT is an asset account and Outp...
In this video, we explain Input VAT, Output VAT, and the difference between Input VAT and Output VAT. We also explain why Input VAT is an asset account and Output VAT a liability account. We explain what a VAT vendor is (who can charge and claim VAT) and when VAT is owed to and from the Revenue Authority (SARS).
VAT Vendor registration: https://youtu.be/1PoMTPWwxUk
VAT Inclusive & VAT Exclusive | Calculation Examples: https://youtu.be/qvJkup5U7WE
Check out other straightforward examples and business-related topics on our channel.
We also offer one-on-one tutorials at reasonable rates as well as other accounting and tax services. Email us and/or visit our website or FaceBook page for more info.
Connect with us:
Email: [email protected]
Our Website: https://Counttuts.com
Our Facebook Page: https://www.facebook.com/Counttuts
Support our Efforts: paypal.me/counttuts
In this video, we explain Input VAT, Output VAT, and the difference between Input VAT and Output VAT. We also explain why Input VAT is an asset account and Output VAT a liability account. We explain what a VAT vendor is (who can charge and claim VAT) and when VAT is owed to and from the Revenue Authority (SARS).
VAT Vendor registration: https://youtu.be/1PoMTPWwxUk
VAT Inclusive & VAT Exclusive | Calculation Examples: https://youtu.be/qvJkup5U7WE
Check out other straightforward examples and business-related topics on our channel.
We also offer one-on-one tutorials at reasonable rates as well as other accounting and tax services. Email us and/or visit our website or FaceBook page for more info.
Connect with us:
Email: [email protected]
Our Website: https://Counttuts.com
Our Facebook Page: https://www.facebook.com/Counttuts
Support our Efforts: paypal.me/counttuts
Our latest Back to Basics video explains what is value-added tax (VAT) and how it works. https://bit.ly/3tp28VN
00:01 – What is VAT?
00:30 – How do value-added taxes work?
02:46 – Why VAT?
Watch more of our Back to Basics videos here:
https://youtube.com/playlist?list=PLmYAE4wV1YQyRb6H1_XJWY73HJVdR6oBX
What is VAT? How does VAT work? VAT, or Value Added Tax, is a system of indirect taxation. In this quick VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use. How does VAT work? What is reverse charge VAT? Find out in this Finance Storyteller video.
⏱️TIMESTAMPS⏱️
0:00 Introduction to VAT
0:20 Basics of a VAT system
1:25 Value Added Tax example
3:43 VAT categories and rates
5:13 Reverse charge VAT
VAT, or Value Added Tax, is a system of indirect taxation. In this quick #VAT tutorial, I will walk you through the concept and definition of how VAT works, run you through a VAT example with a Value Added Tax calculation, and discuss the different VAT categories in use.
VAT is used in around 140 countries in the world. These are the basics of a VAT system:
VAT is a system of indirect taxation on the sale of goods and services to final consumers, in other words VAT is a tax on consumption.
VAT is collected in stages through what is called “the chain of supply”, as you see in the picture on the right. I will illustrate this “chain of supply” concept with numbers in the next part of the video.
VAT registered businesses charge VAT on their sales (this is called output tax) and recover VAT on their purchases and expenses (this is called input tax), and settle the difference with country tax authorities. VAT is not a cost to businesses themselves, they collect and pay it “on behalf of the government”.
VAT rates and rules are subject to change, so check with your local country tax authorities or tax advisor for any country-specific applications of the general idea, and any exceptions to the rule.
The European Union is very well known for having a well-functioning VAT system. Please be aware that although many VAT related legislation is largely standardized across the EU member states, the standard rates differ widely, and what goes into the standard versus the reduced rate category can also differ from country to country.
In this globalizing world with lots of cross-border transactions, how does VAT work in an international context? How about the Dutch training company of your Finance Storyteller that delivers training services in other EU countries? How should he apply VAT?
The main rule is that the place of supply of business-to-business services provided between two VAT-entrepreneurs within the EU, will be the country where the recipient of the services is established.
So does that mean that this training services company has to register for VAT in all EU countries where it supplies its services?
For most companies, fortunately not!
There is solution for this situation and it is called “Reverse charge” VAT!
In reverse charge VAT, there is no VAT on the invoice itself.
The recipient of the invoice self-assesses local country VAT in their monthly or quarterly VAT filing, and deducts that same amount in that VAT filing, effectively leading to a VAT charge of zero, but with two line items.
Both supplier and customer file a separate form of cross-border transactions, detailing “counterpart” VAT number and amount.
That’s how reverse charge VAT works! It greatly simplifies my administrative life.
Here’s what your Accounts Payable staff should look out for when receiving “reverse charge VAT” invoices.
The VAT amount on the invoice should be zero.
The VAT number of the supplier and the VAT number of the (correct) invoiced legal entity are mentioned.
The supplier has mentioned “Reverse charge” (in English) / “Umkehrung der Steuerschuldnerschaft” (in German) / “Autoliquidation” (in French) or “BTW verlegd” (in Dutch) on the invoice.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Roger points out the problems with UK Value Added Tax in his latest rant.
Further reading.
▶ The UK’s VAT Rate Explained:
https://www.kashflow.com/uk-vat
▶ VAT rates for goods and services:
https://www.gov.uk/vat-rates
▶ What are the Most Serious VAT Problems?:
https://bit.ly/3lv99S2
▶ Free UK VAT calculator:
http://www.vatcalculator.co.uk
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#VAT #ValueAddedTax #TaxRant
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--Analyzing the policy idea of a value added tax (VAT), most prominently proposed in the 2020 election cycle by Democratic presidential candidate Andrew Yang
Do I Support Yang's Plan to Tax Automation? https://youtu.be/liG2uf5ik7w
https://www.taxpolicycenter.org/briefing-book/who-would-bear-burden-vat
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Broadcast on February 10, 2020
#davidpakmanshow #valueaddedtax #vat
Indonesia has raised its value-added tax in 2022, and an additionally increase is going to be made by 2025. But why?
Inquiries: [email protected]
Brought to you by the Behind Asian Team.
VAT is an indirect tax paid by consumers of goods and services in Kenya. It is collected by registered businesses who act as agents for the government. This video will explain what VAT is, how it works, and the obligations of VAT-registered taxpayers.
Key Topics in this Video:
What is VAT?
How VAT Works (Input/Output Tax System)
VAT Rates
VAT Registration
Due Dates and Filing
Tax Invoices
Input Tax Deduction
eTims
Keeping Records
Time of Supply
Digital Marketplace Supplies
Deregistration for VAT
Obligations of a VAT Registered Taxpayer
VAT Payment
Electronic Tax Invoice
VAT on Imported Services
Withholding VAT
Keywords: #VAT #Kenya #Tax #Finance #Business #Accounting
In this video, we explain Input VAT, Output VAT, and the difference between Input VAT and Output VAT. We also explain why Input VAT is an asset account and Output VAT a liability account. We explain what a VAT vendor is (who can charge and claim VAT) and when VAT is owed to and from the Revenue Authority (SARS).
VAT Vendor registration: https://youtu.be/1PoMTPWwxUk
VAT Inclusive & VAT Exclusive | Calculation Examples: https://youtu.be/qvJkup5U7WE
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We also offer one-on-one tutorials at reasonable rates as well as other accounting and tax services. Email us and/or visit our website or FaceBook page for more info.
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A value-added tax (VAT) or goods and services tax (GST) is a popular way of implementing a consumption tax in Europe, Japan, and many other countries. It differs from the sales tax in that taxes are applied to the difference between the seller-purchased price and the resale price. This is accomplished by taking full tax on all sales, but refunding the tax difference to the sellers.
The VAT is an alternative to a sales tax, to deal with a specific problem.
With a sales tax, a business selling goods is responsible to make a subjective decision about the intent of the buyer, one which it may not be fully competent to make. If buyers intend to consume the goods themselves, then the seller must collect a tax on the purchase price. If instead buyers intend the goods as capital goods, to be resold at a profit after adding value to them, then the seller must not collect the tax. Sellers thus have an incentive to claim that a sale is non-taxable, in order to please customers, creating an incentive to under-collect taxes.
Nigeria’s proposed Value Added Tax (VAT) reforms have sparked heated debates, especially as they come during a time when many. read more Taxing Nigeria’s future. Will VAT reforms bridge the economic divide? ... .
He also reportedly entered false value-added tax (VAT) entries to cover discrepancies between the academy's bank records and its electronic system ... the parent company being responsible for this tax.
Value Added Tax (VAT) BondsApplicationForms are available Online... liabilities have been cleared for all tax types and the applications relate to VAT filing periods that are prior to the year 2025.
expanded deed tax benefit, second home purchase incentives and value-added tax exemption ... longer a distinction between ordinary and non-ordinary residences, and value-added tax is uniformly exempted.
... cent for the next two years and consider amending the value-added tax policy on clinker production so that clinker is classified as a commodity eligible for the value-added tax deduction.
Bahrain’sParliament is set to discuss and vote on a proposal to impose a 2 per cent tax on expatriate remittances ... a tiered tax system ... Gulf states agree to push value-added tax project with oil low.
“Why accumulate reserves if they can be lost so easily?” Putin added ... New laws now exempt cryptocurrency transactions from value-added tax (VAT) and cap income tax rates on digital asset profits.
... previous tax periods... The system offers a range of incentives, exemptions, and relief across multiple types of taxes, including income tax, value-added tax (VAT), stamp duties, and development fees.
... allowing entities meeting the specified conditions to transfer zero-tariff raw and auxiliary materials between them, exempting them from import tariffs, import value-added tax and consumption tax.
... tax increases will be needed to rein it in ... Add a politically suicidal European-style value-added tax of 5%, raising another $2 trillion to $3 trillion (depending on the base), and you’re closer.
...Amazon’s (AMZN.O) German unit and mail order group Otto, said 2024 sales of goods in e-commerce in Germany rose 1.1 per cent to 80.6 billion euros ($84.0 billion), including value-added tax.
The company believes this move would improve energy efficiency and generate tax ... While crypto transactions are exempt from value-added tax, mining and trading income is subject to a 15% tax rate.
“The other focus areas proposed by the social partners include addressing food security and malnutrition; proposal on Value Added Tax exemption for some poultry products; funding; and other support ...
expanded deed tax benefit, second home purchase incentives and value-added tax exemption ... longer a distinction between ordinary and non-ordinary residences, and value-added tax is uniformly exempted.
expanded deed tax benefit, second home purchase incentives and value-added tax exemption ... longer a distinction between ordinary and non-ordinary residences, and value-added tax is uniformly exempted.