Precision: VAT rate in the EU
The VAT in the EU is the result of rules contained in the regulations and directives adopted by the Council which have, over time, been transposed into the internal law of the 28 Member States of the European Union to constitute a tax regime Harmonized and standardized indirect tax rate applicable to domestic consumption on European territory.
When a company wishes to buy or sell goods or services within the European Union, specific rules apply, in particular with regard to the VAT applied, in order to facilitate trade within the common market.
Reminder: the taxable person is a natural or legal person who carries out an economic activity within the scope of VAT (eg company) or is identified for VAT purposes (eg public authority).
Even if the company has a VAT-based franchise (eg micro-entrepreneurs, self-entrepreneurs), it is considered liable, but not liable (no invoicing and deduction of VAT).
The European Commission has therefore published the new VAT rates applicable within the European Union as of 1 January 2017.
|Country||super reduced rate||reduced rate||normal rate||parking rate|
|Czech republic||10/ 15||21||–|
On the other hand, exports to countries outside the EU are not subject to VAT. In this case VAT is paid in the country of importation and proof must be provided that the goods have been exported to a country outside the EU.
To find out more about VAT at the French national level, please contact us:
Cabinet Roche & Cie, Expert-Comptable in Lyon
Specialist in real estate and taxation of non-residents.