Hire a Financial Expert to Help You with The Technical Tax Rules and Jargon
Every entrepreneur might feel perplexed with the process dealing with VAT registration. This is complicated for everyone and not just you because every EU member state has its own rules and processes which are different from another EU member state’s processes and rules.
The coming in of the EU VAT number is one of the chief attempts at harmonizing the European VAT system. A trader from outside will be asked to get a local VAT number in case he will buy or sell goods from a European country. A VAT registration is also required when a person is planning to hold an exhibition like event or a conference in a EU country or if one plans to hold goods in a warehouse located in a EU country.
Once a company has a VAT number it can then start trading and charging VAT on the foreign transactions that are being carried out by the company.
The process of getting registered with a VAT number should be left with an expert. The expert will tell you about the form which one needs to fill and will take care of the form and supporting documentation at the same time. The application language might not be known to you so once again the need of an expert comes to fore. The experts will simplify the process for you. On any given day you should register in any country where you are likely to trade and the second country where you can register is a place where the turnover of your company is substantial. You can send an invoice which does not contain VAT to your customers in the following cases-
The above two points are valid when your businesses are mainly in one country but you have supplies going to other countries.
The country where you have most activity is a place where you will have to register. Also, your company will need a VAT number if it is trading in the EU.
Whether or not you can send an invoice without VAT depends on if the client has got VAT registration done. The European register contains a list of all VAT registered companies in Europe. If the client wants to see if your company is VIES registered then the VAT expert can tell you where you can incorporate before you get a VAT number and how to quickly get the company on the register of VIES quickly. The expert will also assist you here with the VAT application.
If we were to talk about individual countries and VAT registration then let’s begin with Cyprus. Here the company can apply for the VAT registration right after incorporation. The VAT number is assigned once the company starts trading and the details are then incorporated on European VIES register. Moving on to Czech Republic which is a country I recommend because you can get a European recognized VAT number immediately in this country. Besides being a good destination for trade the rest is usual with this country and VAT is activated once the company begins trading. Next example is of France. Here every company is allotted a VAT number after incorporation.
Germany is another example. Here one should apply for a tax number and a VAT number right after the acquisition of the company. VAT registration here takes around 3-6 weeks. What is different is that another application needs to be filed before the VAT number appears on the European VIES register. You need to be registered for VAT in Germany before you can make intra community acquisitions.
My next example is Ireland and it allows for joint registration for all taxes including VAT, Corporation tax and PAYE pr PRSI.
When you apply for VAT registration in Poland you will need a bit of a presence in the country for example a trading address which is separate from the registered office’s address and you will need a bank account as well.
In Spain an expert can help you with VIES register details though most companies here are not on the VIES register because they trade only within Spain. Every company here as a VAT number though.
Let us take UK as the last example. Here the VAT registration of a company with HMRC takes around four weeks. Every UK Company which has its customer base or offices or staff in UK can obtain a UK VAT number.
Hope this helped.