Selling online: What you need to know about VAT in Europe
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Broadstreet has been advising professionals, entrepreneurs and expats on reaching their personal and financial goals for over 25 years. In this article, they explain how VAT in Europe works.
What is VAT?
VAT stands for value-added tax, a tax that is added at every step of the supply chain where value is added. It starts from raw materials, on to manufacturers, suppliers, the wholesalers, and finally on to the final customers. The VAT goes all the way down the supply chain where it reaches the end consumer. The end consumer will be carrying the VAT and cannot reclaim VAT. Over 140 countries around the world use this system, in the EU, the European Union guidelines are used. In the Netherlands, it s called BTW.