What is VAT and why is it necessary?
VAT number (Value Added Tax number) is an identification number assigned to companies registered in the European Union engaged in the sale of goods or services within the EU. A VAT number is required for the payment of Value Added Tax (VAT), which is set by the country where the sale is made.
Obtaining a VAT number is mandatory for businesses selling goods or services within the EU. If a company does not have a VAT number, it cannot legally sell its products or services within the EU or pay the Value Added Tax.
It is worth noting that VAT rules also apply to businesses involved in the sale of goods or services within the EU, even if they are registered outside the EU.
Registration as a VAT payer
Registration as a VAT payer in Europe can be mandatory or voluntary.
Mandatory registration for VAT payment is established if sales within the EU exceed the specified thresholds. These thresholds depend on the country where the company is registered and can range from 15 000 euros to 100 000 euros per year. However, if the annual turnover (total sales volume) of the business does not exceed a certain threshold set by each EU member state, registration as a VAT payer is not mandatory and may be considered voluntary.
In addition, companies registered for VAT payment in the EU must comply with rules related to the preservation and accounting of tax documents, including invoices and VAT reports.
Required documents for VAT registration
To obtain a VAT number, it is necessary to apply to the relevant tax authorities in the country where the company is located.
The process of VAT registration generally takes 10-14 days.
Additional documents may be required to obtain a VAT number, depending on the country where the company is located and the requirements set by the tax authority of that country. Typically, the following documents need to be provided:
- Application for VAT payer registration
- Copy of the company's founding documents
- Copy of the company director's passport
- Document confirming the company's address
- Information about the company's activities and sales volume
Our VAT number acquisition services include:
- Consultations regarding obtaining VAT codes and requirements related to VAT payer registration.
- Preparation of all necessary documents and applications for submission to the relevant authorities.
- Handling all necessary negotiations with VAT issuing authorities to ensure a swift and successful registration process.
- Providing comprehensive support from start to finish in obtaining a VAT number, including recommendations for VAT tax payment and report submission.
Foreign companies are responsible for calculating, collecting, and remitting VAT (Value Added Tax) to tax authorities, as well as for the documentary formalities and VAT reporting. Therefore, we recommend entrusting these procedures to specialized experts to avoid potential penalties and misunderstandings with tax authorities.
Our team of experts in international tax law has years of experience working with companies of all sizes and industries. We are ready to assist you in registering as a VAT payer in any European country and ensure timely submission of VAT reports.
