Tax law: How does the VAT work?
6 June 2022
In principle, companies have to pay value added tax (VAT) to the state.
VAT is a consumption tax that was introduced in 1995. The tax is levied on companies that charge it to customers for their products and services. This is mentioned in the receipts (look at the “pre-tax value and value including VAT”!).
Here are the applicable legal rates:
Standard rate: 7.7% (cars, watches…