VAT Registration

You may have to apply for a VAT registration number in an EU Member State to the extent that you are regarded as the person responsible for the payment of the VAT vis-à-vis the local tax authorities.  Here is a list of examples where you normally have to account for the VAT due in an/another EU Member State:

• You supply goods shipped from an EU Member State to private customers located in other EU member States. These sales named “distance sales” must be charged with the VAT due in the Member State of destination when they represent a yearly turnover exceeding a threshold of € 35,000 or € 100,000 depending on the EU Member State of destination; Find Out More

• You make domestic supplies of goods to private individuals or businesses when it is not possible to invoice them without VAT (reverse charge scheme not applicable),
• You have goods shipped from an EU member State to the other and supply them to a business client (intra-Community supplies), or have them shipped to a third country outside the European Union (exports) ;

• You supply works and other services connected with an immovable property located in another EU member State, including e.g. services of experts and estate agents, the provision of accommodation or re-invoicing of hotel costs, services of architects and of firms providing on-site supervision, which are liable to VAT in the EU Member State where the real estate is located;
• You supply passengers transport services in other EU member States, . Subject to specific exemptions, such services are normally liable to VAT in the country where the transport is performed ;
• You provide short term rentals of means of transport (less than 30 days for cars and 90 days for boats) which are liable to VAT in the EU Member State where you make the mean of transport available to the lessee;
• If you grant access to conferences, trade fairs, training sessions/seminars to several companies, you will normally have to charge VAT in the EU Member State where the exhibition/ seminar takes place ;
• You make intra-Community acquisitions of goods shipped from another EU Member States (optional depending on the circumstances) to a warehouse held in another member State;
• You buy services from abroad for the purpose of a liaison office or any other establishment you hold in another EU member State and must account for VAT under the reverse charge rule in this country (the recipient must self-assess the VAT due and can recover the VAT at once on his own VAT return)

• You supply services on the internet to private customers residing in another EU member State (e.g. website supply, web-hosting, distance maintenance of programmes, supply of images, text, information, music, films, games, distance teaching, etc.), that are liable to VAT in the country where the customers reside. Find Out More

The companies established in the EU rarely have to appoint a tax representative in the country where they need to be VAT registered. They may perform themselves the formalities for VAT registration and tax returns purposes. However, due to the complex and different tax rules in each EU country, it is useful to appoint a VAT specialist who acts as a tax agent and performs formalities for VAT registration and for tax and Intrastat returns purposes on their behalf.

The companies established outside the EU often have to appoint a tax representative in the country where they need to be VAT registered and this latter is fully and severally liable vis-à-vis the tax authorities.

The nature of international activity means that additional VAT registrations may be required as your business grows. Whenever there is a need for additional VAT registrations, TRA can help you by offering :

• assistance with VAT registration in 20 EU Member States + Switzerland and Norway;
• one single contact, the relationship manager, who will coordinate the VAT registration in several countries

• Preparation and filing of VAT registration forms, and follow-up actions with the competent authorities;
• Provision of templates with a view to gathering the relevant information for the purpose of periodical VAT and Intrastat returns;
• Review of a sample of sales invoices and purchase invoices supporting the transactions undertaken in the countries concerned;
• Communication of any errors identified from the invoices selected and, where possible, guidance on how to address potential issues;
• Preparation and filing of the periodical VAT returns after your review within the legal time limits;
• Preparation and submission of Intrastat returns, EC Sales and Purchase Lists for the intra-Community transactions, if any, after review and approval;
• Follow-up actions on your behalf of any payments of VAT due or receivable;
• Preparation and filing of VAT refund claims;
• Assistance in drafting replies to request for information from the tax authorities, attendance during tax audits, liaison with attorneys on the occasion of tax litigations, etc.
• Periodical review of changes in legislations and compliance requirements with a view to assess the possibilities to mitigate your compliance costs;
• Provision of any and all additional compliance services if need be.