VAT & Tax Glossary

    Clear definitions for every VAT and tax compliance term you'll encounter in European business.

    VAT (Value Added Tax)
    A consumption tax levied at each stage of the supply chain.
    Input VAT
    VAT paid on purchases used for business activities.
    Output VAT
    VAT charged on sales to customers.
    Reverse Charge
    A mechanism where the buyer, not the seller, accounts for VAT.
    One-Stop Shop (OSS)
    An EU system for reporting VAT on cross-border B2C sales in one return.
    VAT Return
    A periodic declaration of VAT collected and paid.
    VAT Registration
    The process of obtaining a VAT identification number.
    VAT Number
    A unique identifier assigned to VAT-registered businesses.
    VAT Threshold
    The revenue level at which VAT registration becomes mandatory.
    VIES
    The EU's VAT Information Exchange System for validating VAT numbers.
    Intrastat
    Statistical reporting of goods traded between EU countries.
    Place of Supply
    The location where a transaction is deemed to occur for VAT purposes.
    Exempt Supplies
    Goods or services not subject to VAT.
    Zero-Rated Supplies
    Taxable supplies charged at 0% VAT.
    B2B Transactions
    Business-to-business sales with specific VAT rules.
    B2C Sales
    Business-to-consumer sales where VAT applies at the consumer's location.
    Cross-Border VAT
    VAT implications for transactions between different EU countries.
    Small Business Exemption
    An exemption from VAT for businesses below a certain revenue threshold.
    Tax Point
    The date when VAT becomes chargeable on a transaction.
    Invoice Requirements
    The mandatory information that must appear on a VAT invoice.
    Margin Scheme
    A VAT scheme where tax is calculated on the profit margin, not the full price.

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