VAT Tax is one of the important taxes in trade and VAT compliant is very much important and must one for the business. VAT is implied both import and export of goods and services. There are different kinds of Tax system is followed in different countries. VAT tax is also changes as per the type of goods and services supplied. Most Importantly in European Union, the VAT system is played major role and it plays bigger part in the budget of European Union Parliament. Fifth of the total budget in European parliament depends on the VAT tax.
There are various types of tax imposed on business and also on people and it has the different limitation, different reasons, and different purposes. The taxes like service Tax and income tax are more or less common in all countries. Some taxes like value added taxes are different from each country and most importantly European Union VAT system is very different from other countries. These Taxes are playing important role in Budget of those countries
Tax is one of the most confused and complicated things in trades with the foreign country, especially European countries. European countries have different Tax setup within them. Most of the foreign companies trading with European countries need to appoint certain type of representative on behalf the company to take care of entire tax related problem and to represent the company to tax authorities in European countries. The taxable goods and services provided by the foreign traders into the European nation must have this type of local representative to perform representing the company in tax related matters.
VAT system in the European Union is different from one country to other including the outgoing United Kingdom. There are different types of Rates are imposed on business by the different countries in the European Union. Some of them have high rates and some of them have the low rate as per the requirements and the minimum VAT tax is 17% collected in Luxembourg and the highest is 27% collected by Hungary. The different between these rates are mainly make an equal or more contribution to European Union’s Budget. There are some exemptions also available for the tax and its tax benefits.
Representatives for VAT
The fiscal representatives are the one who took care of tax related things for the company who have the trade relationship with any of the European countries. Most of the fiscal representatives are local residence of the country. Because the local residents only can understand the local language which was used in all Tax authority offices. It is never easy for the foreigners to understand the local language and appointment of local people as fiscal representative is very much useful for the company. Tax authority offices in Spain and Poland provide the regulations in their local language only and it is very wise to keep the native people as fiscal representative is essential. They will represent the company in tax related works and audits.
Many service providers available throughout European countries to provide the good representative to the company. There are some best companies available in Europe to help the US-based companies in providing local representative that is simply because they care about the business run by US based companies. Companies like VACUE providing this kind of service in free of cost and also helps to find the perfect representative or customs agents as per the company requirements. This free cost of service is possible for them because they get all kind of financial supports from the sponsors.
The appointments of this kind of representatives are very much needed for the non-resident companies trading with any country in the European Union. There are nearly 50 countries in the European Union and they have the different set of rules, regulations, and Rates in VAT. The local representative must aware of these rules and rates of VATs. There are many good local representatives available throughout European countries but some of them are best and the best only can help the companies in tax related issues and provide the best support to the company. The Good representative always gives their best to the company in tax-related matters.