Summary 3 - VAT

Question 1

What is Output VAT / INPUT VAT? VAT return?

Answer 1

output VAT: VAT charged to our clients

input VAT: VAT paid to our suppliers

Return: Output VAT - Input VAT

Question 2

What is the B2C General Rule?
B2B General Rule?
Exceptionsß

Answer 2

B2C General Rule: Origin principle (VAT paid to the country of origin)

B2B generel rule: destination principle (VAT paid to destination country)

Exceptions: distance selling (if threshold, destination principle)

Question 3

How are exportations & eu sales, importations and EU acquisitions treated?

Answer 3

exportations & eu sales-> full exemption

importations-> VAT paid in customs area when we collect the goods

eu acquisitions-> reverse charge rule applies (VAT is accounted by the purchasing party in the country of destination

Question 4

What are the rules regarding services?

Answer 4

VAT must be collected where the service is located

b2c general rule: service located where the supplier belongs

b2b general rule: service located where the customer belongs (reverse charge rule applies If supplier is not established in country of destination)

special rules: service related to land (where the land itself is located, b2c-e service

Question 5

What is the distance selling scheme?

Answer 5

destination principle applies of turnover in one country surpasses its threshold ; if not destination principle can voluntarily be applied-> goods sent by courier or post however ordered; MOSS scheme is available to report in one single eu country alle sells to the rest of eu

Question 6

What happens at acquisition of new means of transport?

Answer 6

destination principle applies (VAT must be paid in the destination country); harmonized in the EU
–> applies to new land vehicles, ship or aircraft