Value Added Tax (VAT) is a general consumption tax charged to customers on the goods and services they consume or use. In reality, when a customer pays all taxes (including all taxes) for a product or service, the consumer pays the VAT mentioned on the invoice. The latter is then transferred to the tax authorities. However, the VAT rate differs according to different parameters. The most decisive element is the product or service marketed. Discover the different VAT rates here!
The normal rate
The standard rate is the most common VAT rate. It is set at 20%. Indeed, this rate is applied for the majority of sales of goods and services. Also, it applies to all products and services that do not formally have a predefined VAT rate. For the purchase of a vehicle, for example, the normal rate will be applied to you.
By knowing the rate to apply to the product purchased by the customer, you will be able to calculate the amount of VAT to be paid to the tax authorities and see clearly in your accounts. Indeed, the price including VAT of a product is equal to its price excluding VAT plus VAT.
In addition, you have the possibility of acquiring a VAT calculator to make your job easier. It is a free and easy-to-use tool for businesses and individuals in all industries.
The reduced rate of 10%
The reduced rate of 10% applies to a specific type of products and services. These include non-reimbursable drugs, unprocessed agricultural products, firewood, etc.
Also, this rate is applied to services such as the provision of hotel and camping accommodation, work relating to residential premises, catering, fairs and exhibitions, games and fairground rides. It also concerns entry into museums, zoos, monuments and passenger transport.
The reduced rate of 5.5%
The reduced rate of 5.5% is valid for essential products and services. These are mainly food products, feminine hygiene products, equipment and services for the disabled, gas and electricity subscription, the supply of heat from renewable energies, the supply of meals in school canteens.
Likewise, it concerns ticketing for live shows and cinema, imports and deliveries of works of art, work to improve the energy quality of housing, social or emergency housing and access to housing. property.
The particular rate
The particular VAT rate is a specific rate. It is set at 2.1%. This rate is applied to drugs reimbursable by social security, to the sale of live animals, butcher’s and pork meats. This rate is also intended for registered press publications, television license fees and certain shows.
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Finally, it is essential to notify that the VAT rate can be different from one country to another and it can be applied in different ways. Everything is based on the legislation specific to each state.