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What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice
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What is VAT? - Introduction - MFFA Belastingadvies | Tax Advice

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Introduction for those who want to know what VAT is? Please do not hesitate to contact us if you have any questions.

Introduction for those who want to know what VAT is? Please do not hesitate to contact us if you have any questions.

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  • 1. MFFA Belastingadvies | Tax Advice Specialized in Expats and International Companies Amsterdam | Zwolle | Assen The Netherlands
  • 2. VAT In Europe how does is work?
  • 3. Introduction of VAT • What is this? • Do you have to charge this? • Can I get it back? Invoice Price excl. VAT VAT 20% Price incl. VAT € 100,- € .20,€ 120,-
  • 4. Entrepreneur A supplies goods and/or services Entrepreneur • Entrepreneur A is obliged to charge VAT on goods/services supplied (EU VAT Rules prescribe this ability). • The recipient can deduct the VAT if he is an entrepreneur. ??? A B Supply of goods and/or services
  • 5. ??? B receives an invoice • Entrepreneur A charges € 120,(invoice incl. VAT) to B. • Entrepreneur A pays € 20,- VAT to local Tax Authority ??? Tax Authority B € 20,Invoice Price excl. VAT VAT 20% A € 120,100,- € 20,€ 120,- € .20,- Price incl. VAT Entrepreneur € 100,€ 120,-
  • 6. Can ??? B reclaim the paid VAT If ??? B is an entrepreneur, a private individual (“PI”), he can reclaim the paid € he cannot 20,- VAT. reclaim the paid € 20,- VAT. Entrepreneur .0.. ??? PI B Tax Authority Invoice Price excl. VAT € 100,- VAT 20% € .20,- Price incl. VAT € 120,- € 20,-
  • 7. Basic principle VAT Rate 20% 8,00 € 120 Consumer Consumer € 4,00 €100 € 8,00 Tax Authority Total added value VAT 20% Retailer Retailer € 100,€ 20,- € 60 This € 20,- tax is a burden for the consumer. It has been paid indirectly to the tax authority through tax returns and reclaims by the supplier, manufacturer and retailer. Manufacturer Manufacturer € 40 Supplier Supplier €0 Sales Cost of Goods Added Value Taxes to be paid Sales Cost of Goods Added Value Taxes to be paid Sales Cost of Goods Added Value Taxes to be paid € 40,€ 0,€ 40,€ 8,00 € 60,€ 40,€ 20,€ 4,00 € 100,€ 60,€ 40,€ 8,00
  • 8. When does VAT apply Situation 1 United States Europe Import Import VAT is due by importer of record
  • 9. When does VAT apply Situation 2 Europe The Netherlands Germany Intracommunity supply VAT 0% applies under conditions
  • 10. When does VAT apply? Situation 3 The Netherlands B A Local Supply VAT 19%
  • 11. When does VAT apply? Situation 4 United States 0% Export VAT-rate applies under conditions Europe Export
  • 12. When does VAT apply? Situation 5 Europe The Netherlands VAT-charge is reversed to recipient, local VAT in country of recipient is due but can be deducted as input again. Germany Intra community acquisition
  • 13. Pitfalls • Formal rules for intracommunity supplies and acquisitions are not met • Distance sales • Incorrect invoices (incorrect reflection of supply at hand) • Incorrect filing of returns leads to problems • Incorrect (local) VAT rates reported
  • 14. Contact For further information please do not hesitate to contact us: E-mail: info@mffa.nl Website: www.mffa.nl

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