A : → If you are the exporter from non EU countries, you will not beinvolved in the VAT from the EU countries, because its the importer who need to pay the VAT and not you.When the importer sell the goods to the distributor, the importer will add the VAT on top of the selling price on their invoice, for example, if the total cost is pound 1000, including VAT will become pound 1175, so the distributor will pay pound 1175 for the goods they bought from the importer. When the distributor resells those goods to a retailer, the retailer will also be charged for the VAT, and the retailer will include the cost of VAT when setting their selling prices. The customer will be the final buyer to pay the VAT. The importer, distributor and retailer are all entitled to claim back the money they have paid for the VAT after they sold their goods. So the VAT dept. will refund the VAT to the importer, distributor and retailer but not the customers.
A : → Here is the issue.I have a company registered with VAT in Greece, the Greek company pays a German company registered with VAT in Germany to deliver consulting services in Germany. What are the VAT implications for the German company that is providing the service in Germany and what are the VAT implications for the Greek company that pays from Greece for the service.
A : → The VAT rate that you will be charged depends on the EU country where you usually reside, have a permanent address, or are established. The VAT's in Greece and Germany are respectively 19% and 16%.
Q : → I would like to enquire about the VAT over in EU countries. Could you please let me know the definition of VAT? In my understanding, when a product is sold in the EU market, VAT would be charged to the end consumer. But then what if we, as an exporter, sell products to an EU distributor, the distributor then resell those products to the retailer and finally sell to the end consumers. In this case, who will beresponsible in the VAT? Would the VAT end up paying only by the end consumers or charge on each stage when the products sell? Thank you all for your great help.
A : → Value added tax is general tax applied to all layers of business activities, but it is not chargeable to the business. It is however a consumption tax that is borne ultimately by the end consumer. For information on how VAT works, please refer to the Taxation of the Customs Union of the European Commission.
