A deeper look into what VAT is all about


A deeper look into what VAT is all about

VAT refund , more information about this subject can be found on vacue.us , is commonly available to the visitors of EU member states. In case the individual is about to leave the EU territory or is about to visit a country which does not fall under the legislations of EU, in that case the individual is exempted from paying VAT on their purchases.

In general a visitor is designated to be any person who is a resident of any other country which is not enlisted under the legislations of the EU member states. In easier terms any person that dwells permanently or temporarily in any other country except for the European Union States, they can be designated as visitors.

VAT in the European Union member states is a form of staged sales tax which is fundamentally paid by the consumer. The VAT rates at different EU member states have been known to vary significantly where the rates can stretch from as low as 15% to as much as 25% and above as well.

The process of VAT refund is generally brought about when the concerned individual submits a proof of purchase and has been able to compile with all of the requisite formalities at the time of exiting the EU member state. VAT refund however is not applicable if the person fails to show legitimate proof of the purchase that they have made owing to which it is necessary that the individual is aware of the provision at the place of their purchase. The goods however cannot be bought in a tax free manner as the buyer has to pay the entire money inclusive of all taxes.