Which European country was the first to levy VAT on goods?
"negotiations being launched on such an agreement, and they began in March 2015. Monaco–European Union relations Relations between the Principality of Monaco and the European Union (EU) are primarily conducted through France. Through that relationship Monaco directly participates in certain EU policies. Monaco is an integral part of the EU customs territory and VAT area, and therefore applies most measures on excise duties and VAT. However this relationship does not extend to external trade. Preferential trade agreements between the EU and third countries apply only to goods originating from the customs territory – Monaco may not claim EU origin in"
"used by Japan, although subtraction method VATs, often using the name ""flat tax"", have been part of many recent tax reform proposals by US politicians. With both methods, there are exceptions in the calculation method for certain goods and transactions, created for either pragmatic collection reasons or to counter tax fraud and evasion. Germany and France were the first countries to implement VAT, doing so in the form of a general consumption tax during World War I. The modern variation of VAT was first implemented by France in 1954 in Ivory Coast (Côte d'Ivoire) colony. Recognizing the experiment as successful,"
"by Spain and Italy, which each lost over €2 billion. From 1 June 2007 the UK introduced changes to the way that VAT is charged on mobile phones and computer chips to help combat fraud. UK plans to introduce changes to the way VAT is charged on a wide range of goods from December 2006 were aborted because of failure to reach an agreement with other EU member states. In brief, a business that buys and sells goods charges VAT to those to whom it sells ('output tax'), and is charged VAT by those from whom it purchases ('input tax')."
"the French introduced it in 1958. Maurice Lauré, Joint Director of the France Tax Authority, the Direction Générale des Impôts implemented the VAT on 10 April 1954, although German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918. Initially directed at large businesses, it was extended over time to include all business sectors. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues. A 2017 study found that the adoption of VAT is strongly linked to countries with corporatist institutions. The amount of VAT is decided by the state as percentage"
"Value-added tax in the United Kingdom In the United Kingdom, the value-added tax (or value added tax, VAT) was introduced in 1973 and is the third-largest source of government revenue, after income tax and National Insurance. It is administered and collected by HM Revenue and Customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union. There are complex regulations for goods and services imported from ""within"" the EU. The default VAT rate is the standard"
"increased to 12.5% on 1 July 1989 and 15% on 1 October 2010. A common VAT system is compulsory for the member states of the European Union. The EU VAT system is imposed by a series of European Union directives, the most important of which is the Sixth VAT Directive (Directive 77/388/EC). Nevertheless, some member states have negotiated variable rates (Madeira in Portugal) or VAT exemption for regions or territories. The regions below fall out of the scope of EU VAT: Under the EU system of VAT, where a person carrying on an economic activity supplies goods and services to"
"usually not subject to VAT and VAT charged under such circumstances is usually refundable. Maurice Lauré, joint director of the French tax authority, the ""Direction générale des impôts"", as ""taxe sur la valeur ajoutée"" ( in French), was first to introduce VAT with effect from 10 April 1954 for large businesses, and extended over time to all business sectors. In France, it is the most important source of state finance, accounting for approximately 45% of state revenues. A property tax, millage tax is an ""ad valorem"" tax that an owner of real estate or other property pays on the value"
"also stripped the Lieutenant-Governor of most of his effective remaining administrative functions). The Income Tax Law of 1928 introducing income tax was the first law drafted entirely in English. Income tax has been levied at a flat rate of 20% set by the occupying Germans during the Second World War. Because value added tax (VAT) has not been levied in the island, luxury goods have often been cheaper than in the UK or in France, providing an incentive for tourism from neighbouring countries. The absence of VAT has also led to the growth of the fulfilment industry, whereby low-value luxury"
"European Union value added tax The European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each required to adopt a value added tax that complies with the EU VAT code. Different rates of VAT apply in different EU member states, ranging from 17% in Luxembourg to 27% in Hungary. The total VAT collected by member states is used as part of the calculation to determine what each state contributes to the EU's budget. EU"
"the recipient of the services (if a taxable person). But if the recipient of the services is not a taxable person (i.e. a final consumer), the supplier must generally charge VAT at the rate applicable in its own member state. If the place of supply is outside the EU, no VAT is charged. Goods imported from non-member states are subject to VAT at the rate applicable in the member state into which the goods are imported, regardless of whether the goods are received for consideration and regardless of who imports the goods. VAT is generally charged at the border, at"
"an excise) even though during the 1940s, its application grew from a historical average of about 8% of the population paying it to around 90% of the population paying it as a measure to support the war effort. The concept of Value Added Tax (VAT) as an indirect tax was the brainchild of a German industrialist, Dr. Wilhelm von Siemens in 1918 – a hundred years later, the tax which was devised to be efficient and relatively simple to collect and enforce is together with Goods and Services Tax (GST), now in place in over 140 countries globally. Indirect taxation"
"Tax regime). It has Europe’s lowest VAT of just 4.5% in compare of the surrounding countries (Spain and France) that have considerably high VAT rates. It is reduced to a nominal rate of 1% for goods and services such as health, culture, education and food. Employees pay social security taxes at rates of 5-9% on their salaries; employers pay social security taxes of 13% on their employees' salaries. In October 1991, a form of value-added tax was introduced at a general rate of 4% on most goods and at higher rates of 8% and 12%, respectively, for special goods and"
"personal use or gifts without limits.The 2015 EU VAT legislation requires two non-conflicting pieces of evidence to be produced so as to determine what VAT rate should be applied to these digital goods sales. EU sellers may validate the VAT number of a buyer residing within the EU Value Added Tax Area using VIES. All EU member states are part of the VAT area. However some areas of member states are exempt areas: Included with the Republic of Cyprus at its 19% rate: Included with the United Kingdom at its 20% rate: Included with France at its 20% rate: Areas"
"products (alcoholic beverages, manufactured, tobacco products and energy products). However, the establishment of the VAT and its generalization have considerably reduced the scope and thus the revenue of these indirect duties and excise duties even if one of them, the tax on petroleum products, is still considerable. The revenue from the excise duties amounted in 2007 to €2.7 bn, without the TIPP. In order to establish a single market made up of the member states of the European Union, a number of directives on VAT has been enacted since 1967, with the obligation for states to adapt their domestic legislation."
"apply to essential goods such as foodstuffs. The current standard rate of VAT in Denmark is 25%. That makes Denmark one of the countries with the highest value-added tax, alongside Norway, Sweden and Croatia. A number of services have reduced VAT, for instance public transportation of private persons, health care services, publishing newspapers, rent of premises (the lessor can, though, voluntarily register as VAT payer, except for residential premises), and travel agency operations. In Finland, the standard rate of VAT is 24% as of 1 January 2013 (raised from previous 23%), along with all other VAT rates, excluding the zero"
"tax (VAT) at a reduced rate of 5%, as opposed to the standard rate of 20% applied to the vast majority of products sold in the country. The relevant EU legislation was finally changed in 2016. In March 2016, Parliament created legislation to eliminate the tampon VAT. It was expected to go into effect by April 2018 but did not do so. On the 3rd October 2018, new EU VAT rules that will allow the UK to stop taxing sanitary products were approved by the European Parliament. In Canada, the federal government has removed the Goods and services tax (GST)"
"VAT (EUSt in Germany), which is 7% or 19% depending on the goods. From €150 it is necessary to pay VAT and customs. Customs may be very strict, especially for goods shipped from anywhere outside the EU. Up to €10 goods/package. Customs in Italy takes additional 22% VAT (Value-added tax) for goods imported from outside the European Union even if the VAT is already paid to the origin country sender. Up to €22, there are no taxes. From €22 up to €150, it is necessary to pay VAT (DPH in Czech/Slovak), which is 21%. From €150, it is necessary to"
"by Value Added Tax (VAT), initially set at a rate of 10%, which was shortly afterwards reduced to 8%. Purchase Tax Purchase Tax was a tax levied between 1940 and 1973 on the wholesale value of luxury goods sold in the United Kingdom. Introduced on 21 October 1940, with the stated aim of reducing the wastage of raw materials during World War II, it was initially set at a rate of 33⅓%. The tax was subsequently set at differing rates dependent upon individual items' degree of ""luxury"" as determined by the government of the day. In connection with the accession"
"rate, 20% since 4 January 2011. Some goods and services are subject to VAT at a reduced rate of 5% (such as domestic fuel) or 0% (such as most food and children's clothing). Others are exempt from VAT or outside the system altogether. Under EU law, the standard rate of VAT in any EU state cannot be lower than 15%. Each state may have up to two reduced rates of at least 5% for a restricted list of goods and services. The European Council must approve any temporary reduction of VAT in the public interest. VAT is an indirect tax"
"feminine hygiene products and baby products (nappies etc.) are charged at 5% VAT along with domestic fuel. When goods are imported into the EU from other states, VAT is generally charged at the border, at the same time as customs duty. ""Acquisition"" VAT is payable when goods are acquired in one EU member state from another EU member state (this is done not at the border but through an accounting mechanism). EU businesses are often required to charge themselves VAT under the ""reverse charge"" mechanism where services are received from another member state or from outside of the EU. Businesses"
"is 15%, although reduced rates of VAT, as low as 5%, are applied in various states on various sorts of supply (for example, domestic fuel and power in the UK). The maximum rate in the EU is 25%. The Sixth VAT Directive requires certain goods and services to be exempt from VAT (for example, postal services, medical care, lending, insurance, betting), and certain other goods and services to be exempt from VAT but subject to the ability of an EU member state to opt to charge VAT on those supplies (such as land and certain financial services). Input VAT that"
"is located, and an alternative approach is therefore under negotiation, whereby VAT is charged at the rate of the member state where the purchaser is located. The differences between different rates of VAT was often originally justified by certain products being ""luxuries"" and thus bearing high rates of VAT, whereas other items were deemed to be ""essentials"" and thus bearing lower rates of VAT. However, often high rates persisted long after the argument was no longer valid. For instance, France taxed cars as a luxury product (33%) up into the 1980s, when most of the French households owned one or"
"state to opt to charge VAT on those supplies (such as land and certain financial services). Input VAT that is attributable to exempt supplies is not recoverable. The EU VAT area is a territory consisting of territory of all member states of the European Union and certain other countries which follow the European Union's (EU) rules on value added tax (VAT). The principle is also valid for some special taxes on products like alcohol and tobacco. Goods are only considered as imported or exported if they enter or leave the area. The VAT percentage does, however, differ from country to"
"exports are generally zero-rated (and VAT refunded or offset against other taxes), this is often where VAT fraud occurs. In Europe, the main source of problems is called carousel fraud. This kind of fraud originated in the 1970s in the Benelux countries. Today, VAT fraud is a major problem in the UK. There are also similar fraud possibilities inside a country. To avoid this, in some countries like Sweden, the major owner of a limited company is personally responsible for taxes. Under a sales tax system, only businesses selling to the end-user are required to collect tax and bear the"
"a retailer are subject to VAT at 0% rate, but milk drinks bought in a restaurant are subject to VAT at the standard 20% rate. Different rates of VAT apply in different EU member states. The lowest standard rate of VAT throughout the EU is 17%, although member states can apply reduced rates of VAT to certain goods and services. Certain goods and services are required to be exempt from VAT (for example, postal services, medical care, lending, insurance, betting), and certain other goods and services to be exempt from VAT but subject to the ability of an EU member"
"ability of an EU member state to opt to charge VAT on those supplies (such as land and certain financial services). The highest rate currently in operation in the EU is 27% (Hungary), though member states are free to set higher rates. There is, in fact only one EU country (Denmark) that does not have a reduced rate of VAT. There are some areas of member states (both overseas and on the European continent) which are outside the EU VAT area, and some non-EU states that are inside the EU VAT area. External areas may have no VAT or may"
"the state-side. VAT is assessed as a more stable source of income than profit or turnover, since the profit and turnover drop in economical slowdowns or may drop with an ageing population. VAT, therefore is considered to stabilize treasuries in countries with weak economies. At the same time, as a consumption tax, VAT is considered to be more growth-friendly than income- or profit-taxation. Value-added tax in the United Kingdom In the United Kingdom, the value-added tax (or value added tax, VAT) was introduced in 1973 and is the third-largest source of government revenue, after income tax and National Insurance. It"
"almost entirely stopped now, partly due to the prevalence of forgeries which cost the issuing government revenue. The tax on documents, also commonly known as stamp duty, is one of the oldest uses of revenue stamps, probably being invented in Spain, and introduced (or re-invented) in the Netherlands in the 1620s, then reaching France in 1651 and England in 1694. Governments enforce the payment of the tax by making unstamped documents unenforcable in court. The tax has been applied to contracts, tenancy agreements, wills etc. A pre-printed revenue stamp appeared on many hundis of India. In many countries, tobacco and"
"another member state, the VAT is normally payable in the state where the goods were purchased, regardless of any differences in VAT rates between the two states, and any tax payable on distance sales is collected by the seller. However, there a number of special provisions for particular goods and services. The aim of the EU VAT directive (""Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax"") is to harmonize VAT within the EU VAT area, and specifies that VAT rates must be within a certain range. It has several basic purposes: The VAT"
"domestic goods, and it is never charged twice. To fix this problem, nearly all countries that use VAT use special rules for imported and exported goods: For these reasons VAT on imports and VAT rebates on exports form a common practice approved by the World Trade Organization (WTO). Consider a Ford car that cost $25,000 to produce in the USA (that does not have a VAT, but does have 10% Sales Tax) and an Opel car that costs $25,000 to produce in Germany (that does have 20% VAT). Both prices are shown with all taxes imposed on ""manufacturers"" of these"
"charged. Each member state's national VAT legislation must comply with the provisions of EU VAT law, which requires a minimum standard rate of 15% and one or two reduced rates not to be below 5%. Some EU members have a 0% VAT rate on certain supplies; these states would have agreed this as part of their EU Accession Treaty (for example, newspapers and certain magazines in Belgium). Certain goods and services must be exempt from VAT (for example, postal services, medical care, lending, insurance, betting), and certain other goods and services to be exempt from VAT but subject to the"
"Slovenia, Slovakia, Spain, South Africa, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom, the United States and Vietnam. The refunded amount corresponds to the VAT or GST paid and in which country the traveller buys goods. VAT/GST is a tax added to the cost of a product, calculated as a percentage of the products retail price. Often in Europe, the ticket price includes VAT, this is less often the case in the US. As an example, if the VAT rate on a product is 20% and the ticket price is displayed as €100, including VAT, the VAT will be €16.67"
"the European Economic Community and as a consequence Purchase Tax was replaced by Value Added Tax on 1 April 1973. The Conservative Chancellor Lord Barber set a single VAT rate (10%) on most goods and services. UK income tax has changed over the years. Originally it taxed a person's income regardless of who was beneficially entitled (that is, regardless of whether they had a legal obligation to pass it on to another person) to that income, but now a person owes tax only on income to which he or she is beneficially entitled. Most companies were taken out of the"