Value Added Tax

Value added tax. Goods and services tax. Why do all eu countries use vat. How is it charged ? Value added tax in portugal and lithuania. Lithuanian VAT compliance & rates. The VAT tax point for Lithuanian. Payers of VAT in Lithuania.

The standard VAT rate is 21 %. The reduced VAT rates are as follows: 0 %, 5 % and 9 %.

In Lithuania standart VAT rate is 21%, reduced rate 9% or 5%, abbreviation is PVM, and local name is Pridėtinės vertės mokestis, in Portugal standart VAT rate is 23% or 22% in Madeira and 18% in Azores (Minimum 70% of mainland rate), reduced rate is 13% or 6% ; 12% or 5% in Madeira and 9% or 4% in Azores (Minimum 70% of mainland rate), abbreviation is IVA, and local name Imposto sobre o Valor Acrescentado.

A VAT is essentially a national, or supranational in the case of the European Union, sales tax charged in proportion to the goods and services sold. Retailers appear to be charging a higher price rather that having the consumer recognize additional costs as perpetrated by the tax authority.