VAT is a transaction-based tax that applies to goods and services locally and on imports. VAT rates vary globally and taxpayers are responsible for charging, collecting, and remitting VAT to authorities. Determining where transactions are taxed depends on factors like the customer's location and whether goods or services are supplied. Understanding WHO is supplying WHAT to WHOM and WHERE is key to grasping a transaction's VAT implications.

1. VALUE
ADDED
TAX101UNDERSTANDING THE BASICS

2. VAT is a transaction based tax
that applies to local goods
and services, and imports of
goods and services.

3. There are VAT various rates around
the world, with no set limits.

4. It is a self assessed tax, meaning
taxpayers are responsible for
charging, collecting and remitting
taxes to the authorities.
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5. Registration requirements differ from
country to country, and numerous tax
authorities operate special schemes for
certain sectors, traders or those operating
beneath certain thresholds.
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6. of companies we asked said knowing
where VAT transactions are taxed is
their biggest indirect tax concern.
45%
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7. Where transacitons are taxed is
determined by a number of factors.
Who are you selling to?
Are you selling goods or services?
If you are selling services, how are they delivered?
Where is your customer based?
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8. There are a number of risks associated
with VAT, such as those related to
compliance, documentation, new
revenue streams, and one-off and
unique transactions.
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9. Want to keep it simple?
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10. The following question will
always help you grasp what is
happening and how that may
impact the VAT position ...
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11. WHOISSUPPLYING
WHATTOWHOM
ANDWHERE?
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12. Who: Which entity or person is
contracted to make the supply?
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13. What is being supplied –
goods or services?
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14. Whom is the recipient
of these supplies
and what is their
status?
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15. Where is the supplier
located, the location
or movement of the
goods, the location of
service performance
or the location of the
customer or recipient?
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16. There are also a number of
common misconceptions
to be aware of, such as ...
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17. US companies do not
incur VAT or GST.”
Common misconception
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18. Cost plus revenue does
not attract VAT or GST.”
Common misconception
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19. VAT and GST are just
recovery mechanisms
for getting tax back.”
Common misconception
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20. If you incur VAT you must
charge it on.”
Common misconception
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21. A failure to recognize the impact
of VAT on global operations may
result in significant financial
penalties, interest and hidden
VAT costs ...
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22. ... but with proper planning,
VAT can be minimized.
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23. An indirect tax or VAT ‘health check’
review is a good first step as it will often
highlight risks and opportunities.
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24. Want to make your VAT strategy as
efficient as possible?
Connect with Radius:
US: +1 888 881 6576 UK: +44 (0) 203 005 5518
info@radiusww.com
www.radiusworldwide.com
Radius helps companies expand and win globally.

25. Want to make your VAT strategy as
efficient as possible?
Connect with Radius:
US: +1 888 881 6576 UK: +44 (0) 203 005 5518
info@radiusww.com
www.radiusworldwide.com
Radius helps companies expand and win globally.
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