VAT Database

VAT Database

5.1. What is Taxpayer?

A taxpayer is a taxing company that transfers assets or provides services.
A taxable business operator refers to an entity that independently carries out economic activities regardless of the place or purpose, economic activity refers to all activities involved in manufacturing, sales of goods, service provision, including mining, agriculture and professional services, and refers to the continuous use of tangible or intangible assets to earn income.

What is a taxable business?

Many companies such as the manufacturing industry, trading companies, financial institutions, etc. fall under the taxable business definition. Taxable businesses can also be categorized into "taxable transactions" and "tax-free transactions". As a representative of "taxation transactions", commercial activities such as sales of goods in manufacturing industries and trading companies can be cited. As a representative of "tax-exempt transactions", the sale of goods and the provision of services by financial institutions, welfare and health related companies, and education-related companies and organisations can be cited. (Tax exempt transaction)

  1. Special measures of small businesses
As a special case, there is a special system called small measures (281 to 292) by the small business operator. In each member country, businesses whose sales are less than a certain amount are regarded as "small businesses" and transactions by these businesses can be excluded from taxation. However, this special measure system for small businesses is applicable only to companies residing in the EU. In other words, Japanese companies that conduct taxable transactions within the EU area can not use the special measures system for small businesses even if their sales are small, so it is necessary to register VAT in each member country there is.

Tax exempt corporation

This is applicable to corporations that are not tax collectors, such as research institutes and non-profit corporations. It is different from a corporation that earns income from tax exempt sales like a financial institution or a nursing home as it does not operate the business inherently.

Final consumer

It is a general individual




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