VAT

EU VAT NUMBER: REQUIREMENTS AND PROCESS

EU VAT Number

If a company operates across the European Union (EU), there is a need that it should also get its business’s VAT registration number in another EU country. There are different requirements for the registration in different countries. But according to the EU’s VAT directive, there is a need to get EU VAT Number for each member of the state.

When to get the EU VAT Number:

The effort has been made to harmonies the European VAT system in all countries so that the EU single market for goods and services can be created. The requirements of registration for VAT should be same in all countries. The situations in which a foreign trade is required to get an EU VAT number are as follows:

  • If a company is buying or selling goods to another country.
  • If a company is exporting goods to another EU company that is the goods are transferred to the other country within the EU.
  • If a company is holding goods in warehouses or as a stock in another EU country.
  • If a company is organizing an exhibition or a live conference with the paid entrance.
  • If a company in involved in distance selling that is selling goods or services from internet or catalogues.
  • Installation and supply of a certain equipment in a limited number of situation.
  • If the company follows the 2010 VAT package reforms i.e. it is providing its services in a very limited number.

The above requirement of getting a VAT number is for all the companies either from within EU or non EU companies.

Process of getting the EU VAT Number:

If the company is producing goods and services with the turnover of a certain amount, it should get Vat registration. The company should be VAT registered if it is within EU companies or it should be tax registered if it is a non-EU company. The company needs to complete and submit the required VAT registration form with the documents. The application for VAT registration will not be in a country specific language. EU countries prefer the companies to fill the form in a single language to avoid confusions. The documents a company will need to get the registration are as follows:

  • A copy of the company’s Articles of Association
  • Proof of VAT or tax registration in its country of domiciliation
  • National company registrar’s quotation as proof of existence
  • An original copy of the certificate of incorporation of the company
  • If the company is appointing a local tax agent or Fiscal Representative, then a Letter of Authority or Power of Attorney
  • Proof of the planned trade (e.g. contracts or invoices)

The requirement of getting an EU VAT Number may differ for different countries. For example, in Spain, there is an additional requirement of submitting a confirmation statement that the company does not have a permanent establishment in Spain. A company may get the EU VAT Number in 2-8 weeks after the receiving of application.

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