Free movement of goods
strict VAT rules to comply with

Cross border
VAT

Cross border VAT rules have been applicable since European customs borders were removed in 1993. Ever since this period, RMB has been assisting companies from all over the world with cross border VAT. Despite the numerous VAT changes over the last 25 years, cross border VAT still is a very complex and unclear subject for many business operators. This complexity is due to many VAT regimes are different according to the kind of operations companies have within the European Union.

Cross border VAT made clear with RMB

The mission of RMB is to make cross border VAT clear and easy-to-deal-with for traders, and to manage all their VAT obligations in the 28 EU Member States as well as Norway and Switzerland.

RM Boulanger is not an accounting company nor a law firm. RMB, as an independent company provides its clients with quick and detailed answers. Businesses often face urgent situations and want to have their cases managed and solved immediately. This is what sets us apart to many so-called VAT specialists, who operate more as legal departments than VAT practitioners. RM Boulanger prides itself on its independence and the services it provides.

Cross border VAT compliance is not a secondary service for our company, but our core business. RM Boulanger has been providing European VAT services for more than 35 years in all EU Member States, Switzerland and Norway. Cross border VAT is our speciality and we are constantly developing working relations regarding this considerably specific activity with new clients that need reliable, practical information and fair pricing.

Definition

We refer to cross border VAT when a company sells goods or services to another company based in a different EU Member State. Cross border VAT regulations also apply to companies based outside the EU, selling goods or services from an EU Member State to another EU Member State.

Cross border VAT regulations are set in a European Directive (2006/112/EU). The purpose of this Directive is to impose on Member States common cross border VAT regulations. However, each Member State can decide how they will implement these rules in their own VAT systems. Therefore, all EU Member States have different VAT systems which make cross border VAT very complex for traders.

RMB assists more the 400 companies with their VAT returns and obligations. RMB’s clients have all decided to outsource this complicated and ever-changing matter to our well-known and reputed VAT professionals.

Is VAT always exempted?

Companies involved in Intracommunity operations are used to invoicing their clients without VAT. They often believe that cross border VAT is easy to handle. It is commonly said that most B2B cross border operations are VAT zero rated, and this is namely the case for intracommunity supplies of goods and for most services provided within the EU.

The issue with cross border VAT is that operators often do not fulfil conditions entitling them to exempt VAT from their invoices. They may therefore face a significant VAT risk exposure. Cross border VAT is very different for B2C operations as VAT must be invoiced in the case of most sales and in most countries. The question however is to know which VAT rate must be applied, the rate of the country of the supplier or the rate of the country of the client.

RMB’s experts would be more than happy to help you answer these questions and to analyse your operations from a professional VAT perspective.

Exceptions

Cross border VAT is full of exceptions, as Member States all have their own specific VAT regimes. RMB strongly advises your company to have all your operations reviewed and qualified, so that you ensure you are applying the right cross border VAT regime. Thanks to RMB’s independent network of agents, our experts are constantly updated with the latest VAT changes in all 28 EU Member States as well as Norway and Switzerland.

How can we help you today?

Do you have questions about how RMB can help your business? Send us an email and we’ll get in touch with you shortly, our VAT experts are always happy to help. You can also contact us by phone: +33 3 20 25 70 70.

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