Which products are exempt from value-added tax?
June 2, 2024 | 40,00 EUR | answered by Friedhelm Sauer
Dear tax advisor for the topic of value added tax,
My name is Roberta Zollmann and I run a small online shop where I sell various products. Lately, I have been delving into the topic of value added tax and I am unsure which of my products are exempt from VAT.
Currently, I mainly sell textiles such as t-shirts and hoodies, as well as jewelry and accessories. I have read quite a bit about the different VAT rates for different products, but I am not certain if my products fall under the tax exemptions or not.
My concern is that I may be providing incorrect information and as a result, run into tax issues. Therefore, I would like to know from you which products are exactly exempt from VAT and if my products may be affected by this.
Can you provide me with possible solutions on how I can ensure that I handle VAT correctly and avoid making mistakes? I am willing to delve deeply into the topic and am grateful for any help and advice you can provide.
Thank you in advance for your support.
Kind regards,
Roberta Zollmann
Dear Mrs. Zollmann,
Thank you for your question regarding value-added tax and your concerns about potential errors in the tax treatment of your products in your online shop. I would be happy to help clarify and provide you with possible solutions to avoid errors.
Firstly, it is important to understand which products are exempt from value-added tax. In Germany, there are different VAT rates that are applied to different products. The standard rate is currently 19%, the reduced rate is 7%, and there are also tax-exempt sales. Textiles such as t-shirts and hoodies, as well as jewelry and accessories, usually fall under the standard rate of 19%, unless they qualify for specific exemptions.
One possible exemption from VAT, for example, is VAT-exempt intra-community supplies or exports. If you sell products to other EU countries or export to countries outside the EU, these sales may potentially be exempt from VAT. However, it is important to adhere to the exact legal regulations and requirements to avoid errors.
To ensure that you are handling VAT correctly, I recommend seeking professional help from a tax advisor. A tax advisor can help you understand the tax regulations, classify your products correctly, and apply the correct VAT rates. Regularly reviewing your company's tax situation can also help avoid errors and prevent tax issues.
It is commendable that you are delving into the topic of value-added tax and are willing to further educate yourself. With the right guidance and support, you can ensure that you handle VAT correctly and operate your online shop in compliance with tax laws.
I hope this information is helpful and I am available to answer any further questions you may have.
Best regards,
Friedhelm Sauer
