In this guide
What VAT is
Value added tax is a tax on sales that a business collects from customers and passes on to the tax authority. The standard rate here is 7.5%. It is added to the price, so the customer pays it, but it is not your income.
This page is general information. Whether you must register, what you may claim and what you must file depend on your situation and can change, so check with the tax authority or an accountant.
How it flows through your business
When you sell something that is subject to VAT, you charge it on top of the price and keep track of it. When you buy things for the business, you may pay VAT to your supplier, and in some cases you can offset it against what you owe. The difference is what you pay over.
A worked example
You sell a product for 10,000 plus VAT at 7.5%. The customer pays 10,000 plus the VAT amount. Your revenue is 10,000. The VAT amount is held for the tax authority. Treat it as a separate pot and never count it as profit.
Practical habits
Show VAT as its own line on every invoice. Mark which of your products or services are subject to it. Keep the money you have collected in VAT out of the money you plan to spend. Export a statement each month that shows revenue with and without VAT.
Get advice
Rules on registration thresholds, exemptions and filing dates are the kind of thing that changes. An accountant who knows your trade is worth the fee, and clean records make their work quicker and cheaper.
The short version
VAT is collected on behalf of the tax authority, so track it separately, show it on every invoice and get advice on the rules that apply to you.
General information, not legal, tax or financial advice. Last reviewed 26 September 2026.