First of all, cross-border businesses could be held liable for VAT purposes, and required to become local taxpayers.
Also, we can offer you a wide range of services adapting to your own degree of liability.
Remaining highly focused on automation during the set-up and ongoing processes, is our promise to you.
Compliance: set-up
TIN for VAT purposes
Furthermore, you will be given a TIN (Taxpayer Identification Number) for tax purposes. Please note that a new “entity” is not created, only the identification of your existing company. This allows the local administration to manage your rights and duties.
VIES: TIN to European VAT numbers database
VIES: VAT Information Exchange System.
Your local TIN will be sent to register on the VIES database. This allows your suppliers and customers to verify your registration before any intra-community transaction takes place. Also, whether that be a dispatch or service. Therefore, transparency between yourself and all parties is key in every business transaction.
EORI – TIN to customs centralised database
EORI: Economic Operators Identification and Registration
So, if you are already visible on EORI in any member state, you could be required to link it to your local TIN
Compliance: periodic duties
VAT returns
As a consequence, returns have to be made at least once a year (Article 252 VAT Directive) (info here).
EU countries require returns every month or 3 months, sometimes once or twice a year.
Consequently, businesses with a high turnover have to make returns more frequently. But in addition to these ‘periodic returns’, annual returns may also be needed.
Also, the periodicity of returns will usually depend on the amount of your turnover, or the registration for special schemes.
Finally, it is important to check the member state you are interested in before you apply.
ECSL report
ECSL: European Community Sales List
This report is required periodically with intra-community transactions. This requirement is for member states opting for a separate statistic declaration (INTRASTAT).
Threshold for monthly scheme (annual turnover)
INTRASTAT declaration
INTRASTAT: statistics relating to the trading of goods between EU countries (info here)
Please note that once a threshold is reached, declarations are due on a monthly basis, during the coming year, and the year after the threshold has been reached.
Compliance: annual returns
Yearly VAT return
Annual returns must contain all the information required in periodic returns, plus the information needed to make any adjustments.
Compliance: Deduction / refund / special schemes
Finally, compliance is affected by the following factors:
Deduction via refund
Right to deduct periodicity in a standard regime
A deduction by right in a specific regime
Refund via a transnational portal
Registering / identifying / special schemes
