1. Overview of European Value Added Tax (VAT)

1-1, Basic Matters

As of November 2017, there are 28 countries that are members of the EU, each of which has an abbreviation. And these member countries adopt common a VAT system. There are items that vary from country to country such as tax rates and scope of reverse charge, but for the most part it will be the same system.

At present, there is an abbreviation for each member country such as TVA, IVA, etc. as well as Value Added Tax (abbreviated name VAT) for the name of the European VAT. The tax rate also varies from 15% to 28% for each member country. Various items are stipulated mainly in the EU directive called Council Directive 2006/112 in the Europe VAT system.
(The name of the article on this guidebook shall refer to that directive.)