VAT Database

VAT Database

2.1.What is a taxable transaction

 

Taxation transactions in the European VAT Act are (1) asset transfer, (2) service provision, (3) acquisition within the region, and (4) import. When these transactions are carried out, they are considered to be taxable transactions and must be taxed on site. Such activities are called taxable transactions.

However, by using a system such as reverse charge as will be described later, it is also possible to conduct transactions with VAT set at 0%. However, in this case tax is imposed, but the tax liability will be passed to the receiving company from providers such as assets and services etc.

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