What is VAT ID in Europe?
A Value Added Tax Identification Number or VAT Identification Number (VATIN) is an identifier used in many countries for value added tax purposes. In the European Union, a VAT Identification Number can be verified online at the official EU VAT Information Exchange System (VIES) website.
What are EU VAT regulations?
According to EU law, EU Member States are required to levy a standard VAT rate of at least 15 percent and a reduced rate of at least 5 percent. Switzerland, as a non-EU country, levies the lowest VAT rate of only 7.7 percent, followed by Luxembourg (17 percent), Turkey (18 percent), and Germany (19 percent).
Do I need to register for VAT in EU?
As a basic, companies must be VAT (EU companies) or tax (non-EU companies) registered. They will then be required to complete and submit a local VAT registration form, along with supporting documentation. The application form will often be in the local language.
Do I need an EU VAT number?
Getting a foreign VAT number is necessary when conducting transactions that are taxed abroad. Cases in which registration for VAT purposes may be obligatory: purchase, supplies of goods or export operations from another Member State. sale of goods abroad when one cannot use reverse-charge.
How do I verify an EU VAT number?
You can use the European Commission website to validate your VAT Identification Number and member information. To validate your VAT Identifications Number, click on the link below and follow the steps: http://ec.europa.eu/taxation_customs/vies/vatRequest.html.
Do UK companies have EU VAT numbers?
You can phone the HMRC vat helpline on 0300 200 3700 to verify UK vat registration numbers. For any EU businesses including the UK you can also use the VIES vat validation website. Just type in the vat number you’ve been provided and it will give you the company name and address.
Do European companies have VAT numbers?
Every EU country issues its own national VAT number. This means that business supplying goods or services in several EU countries might be liable to get a VAT number in each of these countries.
Do I need to be VAT registered to sell to EU?
Distance selling thresholds mean that once B2C sales reach a financial threshold in the EU Member State (MS) of sale, a business is required to VAT register in that MS and ensure that they pay VAT there.
Who needs an EU VAT number?
What is an EU number?
In the EU, a VAT identification number can be verified online at the EU’s official VIES website. It confirms that the number is currently allocated and can provide the name or other identifying details of the entity to whom the identifier has been allocated.
Do I need to register for VAT all EU countries?
Does the same VAT number apply for all EU countries? No. Every EU country issues its own national VAT number. This means that business supplying goods or services in several EU countries might be liable to get a VAT number in each of these countries.
How does VAT work between EU countries?
When is VAT charged? For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. Likewise, VAT is charged on services at the time they are carried out in each EU country.
How can I avoid VAT in Europe?
You can avoid paying VAT by waiting to buy in a “tax-free” airport store, usually located after the departure formalities at major international airports. The post-customs areas of many big European airports are now more like upscale shopping malls than airports.
What is the EU VAT Information Exchange System?
VIES (VAT Information Exchange System) is a search engine (not a database) owned by the European Commission. The data is retrieved from national VAT databases when a search is made from the VIES tool. The search result that is displayed within the VIES tool can be in one of two ways; EU VAT information exists (valid) or it doesn’t exist (invalid).
How do I validate a VAT number?
Validate a VAT number, check the rules in your country, or see if you can claim a refund. Check to see if a VAT number is valid, search by EU country – either the country that has issued the number, or the country that has requested it. There are standardised rules on VAT at EU level. But these can be applied in different ways by EU countries.
Do I need a VAT identification number for digital goods?
A customer’s valid VAT identification number is currently only a formal requirement to reduce the VAT rate to zero in European Union supplies of goods (including digital goods). It has been a common misconception that you have to obtain and verify the VAT identification number of your customer in another EU member state.
How do I check if my business is VAT registered?
Check a VAT number (VIES) YOUR BUSINESS IN EUROPE You have to check if a business is registered to trade cross-border within the EU with the EU’s VIES web tool. You should verify the validity of a VAT number issued by any Member State by selecting that Member State from the drop-down menu provided, and entering the number to be validated.