Checking the rules in each country
Companies supplying goods with installation in the European Union must therefore pay attention to the following issues:
- Determine the exact qualification of the transaction. There is a lack of harmonization to determine whether the supply of goods with installation is considered as a supply of goods or supply of services.Classification of a complex transaction as a supply of goods or a supply of services can have significant consequences, especially where to tax. Submitting a ruling request in order to obtain the official position of the local tax authorities is often required for juridical security purpose.
- Check whether or not special arrangements have been implemented into the country where the goods are installed or assembled;
- In case no special arrangements are applicable, proceed to the local VAT registration.