VAT Tax Matters

Why does VAT tax matter to your business?

Any business buying, selling, investing or employing staff in one or more countries is confronted with indirect taxes, such as VAT (Value Added Tax). VAT is a tax charged on most transactions throughout the European Union. VAT laws of the European Union member states are all based on Community law.

The European VAT system is not only important for European companies. Businesses situated outside the European Union and importing, buying and selling goods in Europe also have to deal with VAT and need extensive knowledge how to meet each country’s separate legislation and requirements.

Over the years the complexity of VAT legislation of the different EU countries has become a growing concern for businesses. Proper management of VAT and other indirect taxes is essential, due cross-jurisdictional issues and increasingly complicated tax risks.

In principle, non-EU based companies are not liable for VAT. However, when doing business in Europe a VAT liability could occur. Companies need to be aware of the potential requirement to register for VAT in the countries they do business.

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Briddge is a Financial and Legal service provider, offering legal, accounting, tax, payroll and management services. We specialize in guiding international clients along every step of starting-up and running operations in Europe. Briddge is located in Amsterdam, The Netherlands and in Los Angeles, USA. We have a network of partners throughout Europe, enabling us to provide our clients and all their affiliates with the best in class, in-country support.

Jan. 4, 2016  |  Share this post: