VAT In Europe

When you shop in any European Union country the VAT value and excise duty are included in the whole price that you pay. Since these fees vary from country to country, there are some price differences which may prove to be in the interest to consumers. The concept of shopping without taxes also called 'tax-free shopping' or 'duty-free' shall not apply during journeys within the states in the European Union, because the Union is considered as a whole and constitutes a single market. Instead, you can enjoy a wide variety offers, styles, taxes and prices that could surely satisfy every individual taste and demand. As an example of how VAT in Europe works, if you buy a new car that has a mileage that does not exceed 6000 km or that has been put into circulation no longer than six months ago, you will have to pay the VAT in the country of registration, in its applicable value for that country. In some countries, aside of the VAT, you will probably have to pay another registration tax. Currently, due to the European Single Market, any car manufacturer is obliged to offer the customer a certificate of conformity which simplifies the formalities of registration in order to purchase a new car easier in the whole European Union.

In the European Union, the VAT number is different from country to country but does not go below 15 or above 25. For example Luxemburg and Cyprus have the lowest amount in Europe, which is 15 and on the other side we have Denmark, Hungary and Sweden with the highest VAT in Europe, which is 25. With the economic crisis that stroke all over the world, the VAT in Europe has suffered changes as the governments have decided to increase the percentage in order to increase the public budget. This is the case of Romania which raised the VAT number in 2009 from 19 to 24.