Table of Contents
Registering for VAT purpose in a foreign country raises many practical questions:
- When should you register for VAT?
- What documents do I need to provide to register for VAT?
- How long does it take to get a VAT number?
- Is it possible for a company to have several VAT numbers in Europe?
- Is a fiscal representative necessary?
All of these practical questions relate to the VAT registration formalities that you must comply with in the foreign country. The general rules on this subject are set out in Articles 213 to 216 of the VAT Directive, while the practicalities of registration are left to the discretion of each Member State.
The administrative procedures set up by the tax authorities in some countries can be slow (e.g. France), complicated (e.g. Spain) or even crazy (e.g. Hungary). Registering for VAT abroad can be a real headache for the uninitiated.
It therefore takes a lot of experience, a little patience and a very good knowledge of local customs and habits to successfully complete this task and obtain your famous sesame: your local VAT number!
When do you have to register for VAT ?
It is compulsory for your business to apply for VAT registration with the foreign tax authorities before starting its activities. Some countries require this to be done electronically. Financial penalties may apply if the application for registration is submitted late or is even simply incomplete (e.g. Portugal).
The VAT expert's eye
What documents do I need to provide when I register for VAT?
If your company wishes to register for VAT abroad, it is essential to contact the local tax authorities. You will find the complete list of tax authorities here.
There is no need to contact the tax authorities in your country of establishment.
In most European countries, your company will need to submit the following documents:
- VAT registration form(s) completed in the local language
- A copy of the articles of association
- An extract from the trade register
- A VAT certificate
- Power of attorney (if using a fiscal agent)
- Proof of activity on the territory of the country concerned: a contract, an order form, etc.
Each European country may also request additional documents. They may also require all documents to be translated either freely (e.g. Czech Republic) or certified with an apostille (e.g. Spain). Some even require the surname of the mother of the legal representatives (e.g. Hungary)!
How long does it take to get a VAT number ?
After submitting the application, it usually takes between 2 and 8 weeks to obtain the VAT number. However, there are several factors that can considerably delay the allocation of a VAT number: an incomplete or incorrect application for registration by the company, a cumbersome and time-consuming registration procedure in the country (e.g.Spain), a bottleneck with some tax offices themselves (e.g. Germany and France), etc.
Is a fiscal representative necessary ?
Non-EU businesses cannot normally register for VAT themselves. They must do so through a VAT representative. This is a local company that will represent the business in front of the local VAT authorities. It acts in its own name but on behalf of the non-EU company and is therefore jointly and severally liable for its VAT debts. This is why the VAT representative usually requires a guarantee (e.g. a bank guarantee) before accepting the representation assignment.
European companies are not obliged to appoint a VAT representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder (agent) to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.
Beware of penalties !
Most European countries apply fairly heavy financial penalties if the business has not registered for VAT or has registered late. Some countries (e.g. Germany and Italy) no longer hesitate to prosecute the managers of defaulting businesses.
VAT registration procedures vary from country to country. You therefore need a lot of experience, a little patience and a very good knowledge of local customs to successfully complete this mission and obtain your famous sesame: your local VAT number. Otherwise, your registration file will be lost in the administrative abyss and may never surface.
A well-informed company is worth two!
Need to register for VAT abroad? Call on our VAT experts
You don't know how to get a VAT number abroad?
Our firm can help you. We are familiar with all the registration procedures and know how to avoid administrative pitfalls.
How does it work in practice?
It's very simple for you: together with your accounting department, we determine the list of documents to be sent to us. From there, we take over:
- Preparation of the file: data collection, verification of information, possible translation of official documents into the language of the country of identification, preparation of the registration forms, etc;
- Sending the registration application to the local tax authorities;
- Follow-up of the file until the VAT number is issued.
By using our firm, you can be sure of obtaining your VAT registration in the shortest possible time.
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Any VAT question ?
We offer you the opportunity to discuss the subject during a free videoconference.