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If you find the abbreviation “VAT” on an invoice or letter, you rightly don’t know what it actually is. Not everyone is familiar with the three letters. We’ll explain it to you.
VAT: This is what the abbreviation
means.
- The abbreviation VAT stands for Value Added Tax. This is a classic value added tax.
- Such a VAT is usually paid by businesses to the state, but is passed on to the consumer when buying products.
Where does VAT apply?
- Value Added Tax (VAT) exists under this term in both the UK and Ireland. If you buy a product in this country, for example via Amazon, you will find VAT on the invoice instead of the German value added tax (MWSt)?
- The amount of VAT depends on both the country and the product purchased. In the UK, most products are taxed at 20 per cent. In Germany, VAT is 19 percent.
VTA Number – what is it?
- If you do business with the UK or Ireland, you will quickly come across the VAT Registration Number (VAT Reg No) or the Value added tax identification no. (VAT-No).
- This is a longer combination of letters and numbers. You need the VTA number to open a business or to pay your taxes. In Germany, a similar VAT identification number is issued to businesses.
