EU VAT registration

Table of contents:

1. When is VAT registration in EU countries required?
2. What is the CTS limit?
3. VAT accounting and the procedure
4. VAT registration in Austria
5. VAT registration in Belgium
6. VAT registration in France
7. VAT registration in Spain
8. VAT registration in the Netherlands
9. VAT registration in Germany
10. VAT registration in Italy
11. VAT registration in United Kingdom
12. VAT registration abroad – summary

When is VAT registration required in EU countries?

Membership of the European Union obliges member states to comply with EU regulations and to operate within the framework set by EU legislation, which determines, among other things, tax and VAT registration issues.

One of the aspects that concern entrepreneurs from EU Member States is accounting for their VAT in the event of:

• the importation of goods from outside the EU into a given country,
• exports of goods from a given Member State to third countries,
• selling goods and services within the member state,
• purchase of goods and bringing them into the country from another EU country,
• the storage of goods on the territory of a member state.

However, it is worth noting that in order to submit VAT returns in EU countries, it is first necessary to carry out VAT registration in these countries, which is not always easy and transparent, due to the fact that each country has its own rules regarding this process.

What is the CTSO limit?

However, before we get into the details of VAT registrations in selected EU countries, let us mention, the Intra-Community Distance Selling of Goods (CTSO) limit, which from 1 July 2021 is €10,000, which is another situation requiring registration.

The said limit applies to all sales of a given company to other EU member states, and exceeding it obliges to settle VAT in the countries of the buyer of goods and services. This can be done locally, in each country separately, or under the VAT OSS.

VAT settlement and the VAT OSS procedure

VAT OSS is a special procedure that allows you to cumulatively account for your sales to other EU countries via a single, summary VAT return. It came into effect, like the CTSO limit, on 1 July 2021 as part of the e-commerce package.

When opting for this method, EU businesses must first register for VAT OSS in their country of establishment or operation and then account for all their sales using it. It is worth mentioning that VAT OSS cannot be used selectively, i.e. sales to one or more countries cannot be accounted for locally and the rest using this procedure. VAT OSS also allows you to avoid local VAT registration and we explain this procedure in more detail in the article above.

Let us now turn to VAT registration in selected EU countries.

VAT registration in Austria

VAT in Austria is called Umsatzteuer (UST) or Mehrwertsteuer (MwSt) and the standard rate in Austria is 20%.

However, registration for its purposes can be done by entrepreneurs from EU countries by correspondence at the local tax office in Gratz, while local companies can do so at the local tax offices.

Entrepreneurs must also provide the necessary documents for VAT registration, and these include the original registration application and specimen signature card, as well as copies of the memorandum of incorporation with an ordinary German translation and confirmation of registration in the company register in the relevant country with a sworn translation. In addition, copies of an identity document are needed, as well as confirmation of the bank account stated in the application and the entity’s registration as an EU VAT payer.

VAT registration in Belgium

In Belgium, VAT registration by foreign companies takes place depending on their country of establishment. If they are established in Belgium, then they can obtain a VAT number from thelocal office. On the other hand, when they are established outside Belgium, these companies must register with the Federal Public Service Finance.

Furthermore, a number of documents must be provided during registration. These include a copy of the confirmation of the company’s registration with a sworn French translation, a copy of the memorandum of incorporation with a plain French translation and copies of an identity document, proof of a bank account and a document confirming EU VAT registration. In addition to the above, a registration application is also required.

VAT registration in France

In France, VAT registration is carried out online at the Direction des Résidents à l’Etranger et des Services Généraux.

As in Belgium, in France the registration must be accompanied by copies of: proof of identity, proof of bank account, EU VAT registration and a translated company memorandum and confirmation of registration in the company register, the latter of which must have a sworn translation attached. The only original document required is the signed registration application.

VAT registration in Spain

When operating a company outside Spain and wishing to register for VAT in the country, entrepreneurs need a local representative to represent the company at the Administración de la Agencia Estatál de Administración Tributaria (AEAT), which can be translated as Administration of the State Tax Administration Agency.

In addition, the Spanish administration requires fewer documents than in the aforementioned countries, but entrepreneurs must still provide a copy of the EU VAT registration confirmation, a copy of the confirmation from the company register with a sworn translation and a copy of the articles of incorporation with a plain translation. In addition, an apostilled copy of the identity document certified by a notary and the district court is necessary.

Registration in Spain can also be problematic, due to the long duration of the process itself and the activation of the VIES number, which is a separate process in this country. This in turn requires further formal requirements to be met, including the provision of additional documents.

VAT registration in the Netherlands

Foreign companies from European Union countries can register for VAT in the Netherlands with the Belastingdienst – the Dutch Customs and Tax Administration. This process is carried out by correspondence.

In addition, the necessary documents must be provided, of which the only original must be the registration application. The necessary copies, on the other hand, are: an identity document, proof of a bank account, the memorandum of incorporation in the original language with a plain English translation, confirmation of registration in the company register, with a sworn English translation, and confirmation of the taxpayer’s registration for EU VAT.

VAT registration in Germany

Germany, along with the Czech Republic, is one of the most popular markets for Polish companies to expand into. Registration for VAT in this country is done by correspondence at 1 of 4 tax offices, the choice of which depends on the letter with which the company’s name begins.

In order to register for VAT in Germany, you will need a signed, original registration application, the so-called Fragebogen,, and a covering letter. On the other hand, the other necessary documents are the same as in the other countries described in this article and can be provided in the form of copies, and include: identity document, proof of bank account and EU VAT registration, proof of registration in the company register and the articles of incorporation. It is worth noting that the entry in the register should also include a sworn translation and the memorandum of incorporation an ordinary translation.

At this point, it should be added that the German administration sometimes sends special forms that need to be completed for the registration to be completed.

VAT registration in Italy

Also in Italy, VAT registration is done by entrepreneurs from other member states by correspondence at the local tax office, the Agenzia delle Entrate.

In order to register for VAT, traders must submit there the original signed declarations: Dichiarazione and Identificazione diretta ai fini iva di soggetto non residente. Furthermore, what else distinguishes Italian VAT registration is the requirement of an originally signed copy of the identity card. The other necessary documents, on the other hand, do not differ from those required in the other countries mentioned above, and these are: proof of a bank account and EU VAT registration, as well as the memorandum of incorporation and registration in the company register, translated with a simple translation.

VAT registration in the UK

VAT registration in the UK is described last, as it differs from the processes described in the aforementioned member states. The first difference is that the UK is no longer part of the European Union and, therefore, registration is required in slightly different situations. Conversely, the second significant difference is the problems that can occur during the process.

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When do you need to register for VAT in the UK?

The first case that requires registration for VAT in the UK is the sale of goods and provision of services to UK customers by companies that are not based in the UK and the sum of their annual sales is greater than £70,000.

The second case, on the other hand, is when they store their products in warehouses in the UK and ship them from there to their customers.

VAT registration process in the UK

Registering for VAT in the UK itself is done online through the HMRC (Her Majesty Revenue & Customs) service, which is the equivalent of the UK tax office.

While this stage is relatively straightforward, problems can arise in subsequent stages, and these include:

Gathering documentation

In addition to the standard documents that appeared in the descriptions of VAT registration in the Member States, the UK administration may ask for documents that are hard to obtain, such as contracts with carriers that, by virtue of not having started operations, are not yet signed

Communication

You can communicate with the UK administration by email, post, contact form or hotline. Here, however, it is problematic that in the case of mail, as we mentioned above, letters may not arrive on time or at all. In the case of emails, on the other hand, entrepreneurs may wait a long time for a response or not get one at all.

All of the above points can severely prolong the process of obtaining a VAT number in the UK, or even make it impossible.

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VAT registration in EU countries – summary

Registering for VAT in EU countries, as well as in the UK, can be a complex and time-consuming process that requires prior knowledge of the legal requirements and procedures. Consequently, companies that decide to expand into foreign markets often outsource this service to specialists in registration and VAT issues.

Regardless of the country chosen, it is important to be aware that VAT registration is part of doing business within the European Union and that failure to do so properly can lead to serious legal and financial consequences.

Therefore, the decision to expand should be preceded by a thorough analysis of the tax regulations in the destination country. To ensure legal compliance and proper VAT accounting, companies should consult experienced professionals who can assist in understanding and complying with all legal and procedural requirements.