Value Added Tax (VAT) — Rates, Rules & Who Pays
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Value Added Tax (VAT) — Rates, Rules & Who Pays
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Value Added Tax (VAT) — Rates, Rules & Who Pays
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Table of contents
VAT (Value Added Tax) is a consumption tax added to many goods and services. Customers pay it as part of the price; businesses collect it and remit it to the government, often claiming back VAT they paid on business purchases.
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How VAT works
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VAT is charged at each stage of the supply chain, but businesses generally deduct input VAT on their costs from output VAT on sales. The net amount goes to the tax authority. Standard rates differ by country; some items qualify for reduced rates or exemptions.
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VAT for consumers vs businesses
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As a consumer, VAT is usually included in the price you see at checkout. As a business, you may need to register for VAT once turnover crosses a threshold, issue compliant invoices, and file periodic returns. Freelancers with business bank accounts should track VAT separately from personal spending.
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VAT vs income tax
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Income tax is based on profit or earnings. VAT is based on sales of goods and services. They are reported on different schedules. Use bunq Budgeting for personal expenses; use accounting tools or an advisor for VAT compliance if you run a company.
Table of contents
VAT (Value Added Tax) is a consumption tax added to many goods and services. Customers pay it as part of the price; businesses collect it and remit it to the government, often claiming back VAT they paid on business purchases.
\n
How VAT works
\n
VAT is charged at each stage of the supply chain, but businesses generally deduct input VAT on their costs from output VAT on sales. The net amount goes to the tax authority. Standard rates differ by country; some items qualify for reduced rates or exemptions.
\n
VAT for consumers vs businesses
\n
As a consumer, VAT is usually included in the price you see at checkout. As a business, you may need to register for VAT once turnover crosses a threshold, issue compliant invoices, and file periodic returns. Freelancers with business bank accounts should track VAT separately from personal spending.
\n
VAT vs income tax
\n
Income tax is based on profit or earnings. VAT is based on sales of goods and services. They are reported on different schedules. Use bunq Budgeting for personal expenses; use accounting tools or an advisor for VAT compliance if you run a company.
Table of contents
VAT (Value Added Tax) is a consumption tax added to many goods and services. Customers pay it as part of the price; businesses collect it and remit it to the government, often claiming back VAT they paid on business purchases.
\n
How VAT works
\n
VAT is charged at each stage of the supply chain, but businesses generally deduct input VAT on their costs from output VAT on sales. The net amount goes to the tax authority. Standard rates differ by country; some items qualify for reduced rates or exemptions.
\n
VAT for consumers vs businesses
\n
As a consumer, VAT is usually included in the price you see at checkout. As a business, you may need to register for VAT once turnover crosses a threshold, issue compliant invoices, and file periodic returns. Freelancers with business bank accounts should track VAT separately from personal spending.
\n
VAT vs income tax
\n
Income tax is based on profit or earnings. VAT is based on sales of goods and services. They are reported on different schedules. Use bunq Budgeting for personal expenses; use accounting tools or an advisor for VAT compliance if you run a company.