in all 28 EU Member States and beyond
EU VAT registration mandatory for many cross border operations. Need independent specialists advice?
EU VAT registration can be mandatory if your company intends to perform B to B and B to C transactions. EU VAT registration is then not an option you can choose for but is a strict obligation.
If your company sells on the European market, RMB strongly advises you to have your operations reviewed by VAT experts. RMB can of course do it for you. By analysing your operations from a VAT perspective, RMB will inform you if your company needs one or multiple EU VAT registrations.
Being VAT compliant is highly important to avoid penalties and late interests in the countries your company should have been registered for VAT. RMB offers EU VAT registration services to companies in all 28 EU Member States but also in Switzerland and Norway. Our VAT experts will be pleased to answer your questions about EU VAT registration and provide you with a best adapted fee quotation.
How to know if you need an EU VAT registration number? You can determine whether your company needs an EU VAT registration by asking RMB to perform an in-depth analysis of your operations within the EU.
RMB will classify all your transactions of goods and of services to companies or / and to private individuals. Once RMB’s VAT audit is done, you will know in what countries your company needs an EU VAT registration.
RMB will also explain you that having an EU VAT registration number in other EU countries does not mean that you have to charge all your foreign clients with VAT. The reason of this is that lots of Intracommunity operations are VAT zero rated. The main purpose of an EU VAT registration number is to inform the Tax authorities about the amounts of goods or services your company invoiced in the countries your company is VAT registered and track these flows.
Last but not least: how long the EU VAT registration process will take for your company? According to the specific country, the EU VAT registration process takes from a day to 2 months. It is important to anticipate this period before selling goods or providing services in the countries concerned.
Who needs this number?
You will find hereafter the main European transactions requiring a EU VAT registration number:
- Intracommunity supplies of goods made by EU based companies from EU countries to another EU country (B to B operations).
Example: you are a German company and you are the the owner of goods stocked in France. You agree with your Spanish client that you will ship goods to him from France to Spain.
You are in this case performing an Intracommunity supply of goods from France to Spain. A French EU VAT registration number is needed to report this transaction in a French VAT return that will be submitted to the French Tax Authorities. ⇒ Your invoice will be issued without VAT mentioning your French EU VAT registration number.
- Intracommunity acquisitions of goods delivered by foreign suppliers within the EU to you in an another EU member state.
Example: you agree with your Dutch supplier to buy goods from him and that these goods will be delivered to a warehouse in Belgium. This operation is an Intra EC acquisition of goods from the Netherlands to Belgium. ⇒ Your company will have to request for a Belgian EU VAT registration number from the Belgian Tax Authorities because this operation will have to be declared to the Belgian Tax Authorities.
- Exports made from E.U. countries.
Example: your company based in the UK decides to ship goods from Austria to a client based in Switserland.
This operation is qualified as an export of goods from Austria and requires an EU VAT registration number in Austria so that it can be reported to the Austrian Tax Authorities. ⇒ Your invoice will be issued to your client without Austrian VAT but will have to show the Austrian VAT registration number your company was granted in Austria.
- Sales of products to private consumers in another EU member state (B to C operations).
Example: your company based in the Italy sells goods on the Internet to private individuals living in Germany.
These transactions can be qualified as distance sales and may require an EU VAT registration number in Germany. The necessity of requesting an EU VAT in Germany will actually depend on the amount of sales your company had in Germany during the current year. Thresholds of turnover have indeed been put into place by all EU Member States. In Germany the threshold is 100.000 Euros. ⇒ As a result if your sales to private customers exceed 100.000 Euros during the current year, your company needs to ask for a EU VAT registration in Germany.