The main objective of VAT is to tax consumption and generate revenue for the government.
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15
What is the difference between the general tax rate and the reduced tax rate of VAT?
The general tax rate is the standard percentage of VAT applied to most goods and services, while the reduced rate is a lower percentage applied to certain goods
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25
What is a final consumer?
A final consumer is a person who purchases goods or services for their own consumption and is not obligated to collect or remit VAT.
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15
How is VAT calculated in a transaction?
VAT is calculated by multiplying the selling price by the applicable VAT rate and then subtracting the amount of input VAT on the purchase, if applicable.
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10
What is the standard rate of VAT? (%)
21 %
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10
What does VAT exemption mean?
VAT exemption means that certain goods or services are exempt from the tax, and therefore, VAT is not applied to them.
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25
What are intra-community operations in the context of VAT?
Intra-community operations are commercial transactions between member countries of the European Union that are subject to special VAT rules.
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15
From which moment is the input VAT paid by a businessperson deductible?
From the moment they are incurred as a result of the acquisition of goods
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15
Is the transportation of passengers by boat from Valencia to Mallorca subject to VAT? Why/ Why not?
Yes, since Valencia and Mallorca are territories where VAT applies.