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EU / Eastern European Market Entry Solutions

VAT Planning for EU Transactions & VAT Consulting

Non-EU vendors must register for VAT in one of the European Union Member States. The VAT authorities of the Member State in which the Non-EU vendor has registered will remit VAT collected to the states in which sales have been made. The rate of VAT and rules relating to VAT vary from state to state.

Sample rates of VAT

  • Madeira 22%
  • Luxembourg 15%
  • UK and the Isle of Man 20%
  • Sweden 25%
  • Denmark 25%

What is VAT?

Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services.

It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of deductions whereby taxable persons (i.e. VAT-registered businesses) can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved.

Please contact us for expert advice and further information regarding VAT Issues including European Value Added Tax and the Internet and the EU VAT Directive.

How to proceed

We would welcome the opportunity to assist you with more information:

Contact us for a FREE consultation if you would like to discuss your requirements with one of our consultants in person.
Alternatively, complete our Online Questionnaire and a consultant will contact you directly.
For professional intermediaries and repeat orders, download the relevant Application Form and return by fax or email.