- Value Added Tax (VAT)
- An indirect tax levied on the consumption of goods and services added at each stage of the production and distribution process.
- VAT Registration
- The process by which businesses register with the tax authorities to collect, report, and pay VAT on taxable supplies.
- VAT Rates
- The different percentage rates applied to taxable goods and services depending on their category.
- VAT Threshold
- The annual turnover limit determines whether a business must register for VAT.
- VAT Return
- A periodic report submitted by VAT-registered businesses, summarising VAT charged on sales and paid on purchases.
- VAT Invoice
- A document issued by a VAT-registered supplier detailing VAT information for a transaction, including VAT rates and amounts.
- Input VAT
- The VAT paid on goods and services purchased for use in the business.
- Output VAT
- The VAT charged on the goods and services a business supplies customers.
- VAT Exemption
- A category of goods or services not subject to VAT.
- VAT Zero Rating
- A category of goods and services subject to a 0% VAT rate.
- VAT Refund
- A repayment of overpaid or reclaimable VAT.
- VAT Flat Rate Scheme
- A simplified accounting scheme that allows small businesses to pay VAT as a fixed percentage of their turnover.
- Reverse Charge
- A mechanism that shifts the VAT liability from the supplier to the customer in specific situations.
- VAT Taxable Supply
- A supply of goods or services subject to VAT.
- VAT Liability
- The amount of VAT a business owes to the tax authorities.
- VAT Deregistration
- The process of cancelling a VAT registration when a business no longer meets the VAT registration requirements.
- VAT Period
- The specific time interval for which a VAT return must be submitted, usually quarterly or monthly.
- VAT on Imports
- VAT applied to goods brought into a country from abroad.
- VAT on Exports
- Goods and services sold to customers in another country, usually zero-rated.
- VAT on Services
- VAT applied to services provided by businesses.
- VAT on Goods
- VAT applied to tangible products supplied by businesses.
- VAT Compliance
- Ensuring a business follows all VAT regulations, including registration, invoicing, record-keeping, and reporting.
- VAT Penalties
- Fines or sanctions imposed on businesses for non-compliance with VAT regulations.
- VAT Inspection
- An examination of a business’s records and systems by tax authorities to ensure VAT compliance.
- VAT Accounting
- Record, report, and pay VAT transactions in a business’s financial records.
- VAT Deduction
- The process of reclaiming input VAT paid on business expenses.
- VAT Margin Scheme
- A special scheme that allows VAT-registered businesses to calculate VAT based on the difference between the selling price and purchase price of certain goods.
- VAT Number
- A unique identifier assigned to VAT-registered businesses for tax purposes.
- EC Sales List
- A report submitted by VAT-registered businesses detailing supplies of goods and services to VAT-registered customers in other EU countries.
- VAT on Digital Services
- VAT applied to electronically supplied services, such as software, digital content, and online courses.
- VAT on E-Commerce
- VAT rules and regulations related to online sales of goods and services.
- VAT on International Trade
- VAT regulations governing cross-border transactions, including imports, exports, and intra-community supplies.
- VAT on Second-hand Goods
- Special VAT rules and schemes for businesses trading in used items, such as the Margin Scheme.
- VAT on Financial Services
- VAT rules for financial institutions and services are typically exempt from VAT.
- VAT on Transport
- VAT rules apply to transportation services, such as passenger transport, freight, and vehicle hire.
- VAT on Imports
- The value-added tax applied to goods brought into a country from abroad, collected at entry or through a deferred payment system.
- Customs Duty
- A tax imposed on imported goods, usually calculated as a percentage of the goods’ value, paid in addition to VAT.
- Import VAT Deferral
- A system that allows businesses to defer VAT payment on imported goods, usually until their next VAT return.
- Import Declaration
- A document or electronic submission provided by the importer detailing the imported goods and their value, used to calculate VAT and customs duties.
- Tariff Code
- A numerical code assigned to products in international trade, used to determine the applicable customs duties and import VAT rates.
- Intrastat
- A statistical report submitted by businesses within the EU that records the movement of goods between EU member countries, used for VAT and trade analysis.
- Customs Warehouse
- A secure facility where imported goods can be stored without paying VAT and customs duties until they are removed for consumption or export.
- Bonded Warehouse
- A type of customs warehouse, privately operated and authorised by customs authorities, where imported goods can be stored without immediate payment of VAT and customs duties.
- Temporary Importation
- A customs procedure that allows goods to be imported temporarily, without payment of VAT and customs duties, if they will be re-exported within a specific timeframe.
- Import Licence
- A government-issued authorisation required to import certain goods, such as pharmaceuticals, firearms, or hazardous materials.
- Free Trade Agreement (FTA)
- An international agreement between countries that reduces or eliminates tariffs, quotas, and other trade barriers, which can affect VAT and customs duties on imports.
- Importer of Record
- The entity responsible for ensuring that imported goods comply with all regulations, including payment of VAT and customs duties.
- Transit Procedure
- A customs procedure that allows goods to be transported through one or more countries without payment of VAT and customs duties until they reach their final destination.
- Postponed VAT Accounting (PVA)
- A system that allows businesses to account for import VAT on their VAT return rather than paying it at the point of entry.
- Tax and Duty Deferment Account
- An account with the customs authority that enables businesses to defer payment of VAT and customs duties on imported goods for a specified period.
- Economic Operator Registration and Identification (EORI) Number
- A unique identifier required for businesses importing or exporting goods within the EU or the UK, used for customs and VAT purposes.
- Preferential Origin
- A status granted to goods originating from countries with preferential trade agreements may result in reduced or eliminated import VAT and customs duties.
- Import Quota
- A limit a government imposes on the quantity or value of a particular product that can be imported during a specific period, potentially affecting VAT and customs duties.
- Place of Supply
- The location where a supply of goods or services is considered to have taken place for VAT purposes, determining the applicable VAT rules for e-commerce transactions.
- Distance Selling
- The sale of goods or services to customers in another country via online platforms, mail orders, or telephone, subject to specific VAT rules and thresholds.
- Distance Selling Threshold
- The annual turnover limit determines whether a business must register for VAT in the customer’s country for distance sales.
- Electronic Marketplace
- A digital platform, such as Amazon or eBay, facilitates the sale of goods and services between third-party sellers and customers, subject to specific VAT rules.
- Marketplace Facilitator
- An online platform or marketplace responsible for collecting and remitting VAT on behalf of third-party sellers, as per specific VAT rules and regulations.
- Digital Services
- Electronically supplied services, such as software, digital content, and online courses, subject to specific VAT rules in e-commerce.
- One-Stop-Shop (OSS)
- An EU-wide VAT system that simplifies registration and reporting for e-commerce businesses selling goods to consumers in multiple EU countries.
- Cross-Border E-Commerce
- Online transactions involving buyers and sellers in different countries are subject to specific VAT rules and reporting requirements.
- B2C E-Commerce
- Business-to-consumer transactions in which businesses sell goods or services directly to end consumers via online platforms, subject to VAT rules and regulations.
- B2B E-Commerce
- Business-to-business transactions in which businesses sell goods or services to other companies via online platforms, subject to different VAT rules than B2C transactions.
- Import-One-Stop-Shop (IOSS)
- An EU-wide VAT system for non-EU businesses selling goods valued at €150 or less to EU consumers, simplifying VAT registration and reporting.
- E-Invoicing
- The electronic issuance and exchange of VAT invoices for goods and services, often subject to specific rules and standards to ensure authenticity and integrity.
- E-Commerce VAT Package
- A set of EU-wide rules and regulations to simplify and harmonise VAT obligations for online businesses selling goods and services across the EU.
- Low-Value Consignment Relief (LVCR)
- A VAT exemption for imported goods below a certain value threshold, no longer applicable in the EU since the introduction of the IOSS.
- Import Declaration
- A document or electronic submission provided by the importer detailing the imported goods and their value, used to calculate customs duties and VAT.
- Export Declaration
- A document or electronic submission provided by the exporter detailing the goods being exported and their value, used for customs and VAT purposes.
- Tariff Code
- A numerical code assigned to products in international trade, used to determine the applicable customs duties and import VAT rates.
- Customs Duty
- A tax imposed on imported goods, usually calculated as a percentage of the goods’ value, paid in addition to VAT.
- Customs Clearance
- The process of obtaining permission from customs authorities to import or export goods, involving the submission of necessary declarations and payment of duties.
- Customs Value
- As determined by customs authorities, the value of imported goods is used to calculate customs duties and import VAT.
- Incoterms
- A set of standardised international trade terms that define the responsibilities of buyers and sellers in cross-border transactions, including VAT and customs obligations.
- Free Trade Agreement (FTA)
- An international agreement between countries that reduces or eliminates tariffs, quotas, and other trade barriers, which can affect customs duties on imports.
- Transit Procedure
- A customs procedure that allows goods to be transported through one or more countries without payment of VAT and customs duties until they reach their final destination.
- Preferential Origin
- A status granted to goods originating from countries with preferential trade agreements may result in reduced or eliminated import VAT and customs duties.
- Customs Broker
- A professional who assists businesses with the customs clearance process for imported goods, including handling VAT and other tax-related issues.
- Temporary Importation
- A customs procedure that allows goods to be imported temporarily, without payment of VAT and customs duties, if they will be re-exported within a specific timeframe.
- Import Licence
- A government-issued authorisation required to import certain goods, such as pharmaceuticals, firearms, or hazardous materials.
- Export Licence
- A government-issued authorisation required to export certain goods, such as controlled technology, firearms, or hazardous materials.
- Authorised Economic Operator (AEO)
- A certification granted to businesses that demonstrate a high level of customs compliance and supply chain security, offering various benefits in customs procedures and simplifications.
- Customs Compliance
- Ensuring that a business respects all customs rules and regulations related to the import and export of goods, including declaration, classification, and payment of duties.
- Customs Audit
- An examination conducted by customs authorities to assess a business’s compliance with customs rules and regulations, potentially leading to fines, penalties, or adjustments to duty payments.
- Customs Penalties
- Fines, sanctions, or other punitive measures imposed by customs authorities on businesses that violate customs rules and regulations.
- Excise Duty
- A tax imposed on specific goods, such as alcohol, tobacco, and fuel, usually collected at the point of production or importation and in addition to VAT and customs duties.
- Export Controls
- Government regulations that restrict or control the export of certain goods, technologies, or services, often for reasons of national security or foreign policy.
- Import Controls
- Government regulations that restrict or control the import of certain goods, technologies, or services, often for reasons of public health, safety, or environmental protection.
- Customs Ruling
- A binding decision issued by customs authorities to a specific importer or exporter, providing guidance on the classification, valuation, or origin of goods for customs purposes.
- Harmonized System (HS) Code
- An international classification system used to assign a unique code to products in international trade, used to determine customs duties and import VAT rates.
- Country of Origin
- The country where a product was wholly obtained or produced, or where its last significant transformation took place, as determined by customs authorities for tariff and trade purposes.
- Customs Declaration
- A document or electronic submission provided by the importer or exporter detailing the goods and their value, used for customs and VAT purposes.