Charging and deducting VAT
When VAT is charged on goods or services the term 'taxable supplies' may be used.
If you are in business and you supply goods or services, you normally have to:
- register with the tax authorities in the EU country where your business is established;
- charge your customer VAT and account for this to the tax authorities.
Money does not actually have to change hands for VAT to be due — you may also have to charge VAT (usually on market value) on goods and services that:
- you exchange for other goods or services;
- you give away for free;
- you acquire for your own private consumption.
If you are in business, you can usually deduct the VAT you have paid on your own business purchases from the VAT you charge your customers; you then only need to pay the difference to the tax authorities, and report these amounts to them in your periodic VAT return.
Sometimes, the VAT your business has paid exceeds the VAT you have charged to your customers. If so, the tax authorities should reimburse or credit you with the difference.Choose country
- Czech Republiccsen
- Greece *
- Hungary *
- Latvia *
- Romania *
- Slovenia *
- Switzerland *
- United Kingdomen
* Information not yet provided by national authorities
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