Guarantee You’re Charging the Right Amount of VAT
The Complexity of VAT Classification
There are over 85 VAT rates in the EU and UK. Each rate applies to specific items — and the distinctions can be highly detailed. For example, in the UK, the VAT rate on biscuits varies based on chocolate content. Most biscuits are zero-rated, but gingerbread men with more than “a couple of dots for eyes” attract the standard 20% VAT rate.
🔐 We guarantee accuracy. If we provide an incorrect VAT rate classification, we will cover any VAT amounts owed as a result of our error.
VAT Rate Review in Three Simple Steps
Our expert team makes it easy to identify the correct VAT rates for your products across all markets where you sell.
Discuss Your Products with Us
Provide the commodity codes for your products and the countries where you sell. This forms the basis of our research scope.
We Research the Applicable Rates
Identifying the correct rate involves reviewing tax legislation, judicial precedents, and tax authority guidance — which we meticulously perform for each commodity code in each country.
Receive Your VAT Rate Report
We compile a report detailing all relevant VAT rates with citations to supporting evidence. You receive it via email, or we review it together on a call.
GST, HST & PST Rate Reviews, Too
Selling in Canada? Prevent over or underpayment of Goods and Services Tax. Whether you are exporting for the first time or expanding to new provinces, we determine the correct rates for your merchandise.
VAT Rate FAQs
What happens if I charge the wrong VAT rate?
Charging the wrong rate leads to over or underpayment. Overpayment may be reclaimed; underpayment requires amending previous returns and settling the difference. Most tax authorities charge interest from the original deadline, and penalties may apply.
What distinguishes Zero-Rated from VAT Exempt?
Both zero-rated and VAT exempt products carry no VAT at checkout. However, suppliers of zero-rated products can reclaim input VAT, whereas those with VAT exempt supplies cannot.
Can VAT rates change over time?
Yes. Governments periodically adjust VAT rates in response to economic conditions or policy changes. This is why it is important to regularly review the rates you apply to ensure ongoing compliance.
How do I calculate VAT?
Apply the applicable VAT rate to the net price of the product. For example, a handbag with a net price of £100 at the UK standard 20% rate gives a total price of £120.