{"id":66725,"date":"2020-09-21T10:30:45","date_gmt":"2020-09-21T08:30:45","guid":{"rendered":"https:\/\/blog.hellotax.com\/blog\/?page_id=66725"},"modified":"2021-10-07T18:21:26","modified_gmt":"2021-10-07T16:21:26","slug":"apply-for-a-vat-number","status":"publish","type":"post","link":"https:\/\/hellotax.com\/blog\/apply-for-a-vat-number\/","title":{"rendered":"Apply for a VAT Number:
Instructions, Deadlines & more"},"content":{"rendered":"\r\n

The VAT number is a must for most European online sellers. Often even one application is not enough and VAT IDs have to be applied for in other countries as well. In this article you see when this is the case, what you need to know about registering for VAT and how it works.<\/p>\r\n\r\n\r\n\r\n

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IMPORTANT<\/strong>: Since the beginning of 2020, the UK is no longer part of the EU. However, all VAT, tax and trading agreements with EU member states stay the same until 31.12.2020. >Read More<<\/a><\/p>\r\n\r\n\r\n\r\n

What is VAT?<\/h2>\r\n\r\n\r\n\r\n

The value added tax,\u00a0VAT, is a Europe-wide consumption tax that is assessed on the value of all products and services which are sol in the EU. There are different rates of this tax which 1. apply for different product categories\/services and 2. can be set by each member state individually as long as the standard VAT rate is at least 15%.<\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n

VAT IDs – An Overview<\/h2>\r\n\r\n\r\n\r\n

The VAT (identification) number is a mandatory identification of companies for trade within the EU. On the one hand, it serves to identify companies that are active in the European Union and, on the other hand, it is of course used for the collection and payment of VAT.<\/p>\r\n\r\n\r\n\r\n

Who has to apply for a VAT number?<\/h2>\r\n\r\n\r\n\r\n

In principle, anyone trading across borders in Europe – whether physical products or services – must have at least one VAT number. In most cases a registration in the “country of origin” is sufficient.<\/p>\r\n\r\n\r\n\r\n

Note<\/strong>: Only sellers\/service providers who sell B2B are subject to VAT.<\/p>\r\n\r\n\r\n\r\n

Beyond that there are still further reasons, which make a registration necessary and so it can be also quite possible that one needs additionally still further value added tax (VAT) number.<\/p>\r\n\r\n\r\n

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Book a free consultation<\/h3>

Our VAT experts are happy to help you. Book a free consultation today!<\/p>\n

Free consultation<\/a><\/div><\/div><\/div>\n\r\n\r\n\r\n

So what leads to the obligation to pay VAT in other EU countries? There are 2 main points to consider: Storage of goods and reaching the delivery threshold<\/a> for distance selling<\/a>.<\/p>\r\n\r\n\r\n\r\n

Storing Goods<\/h3>\r\n\r\n\r\n\r\n

Anyone who stores goods in an EU country must also register for VAT there. This also applies, for example, to Amazon sellers who store their goods in the various Amazon fulfillment centers through FBA.<\/p>\r\n\r\n\r\n\r\n

Example<\/strong>: Amazon’s Central Europe Program<\/a> allows storage in Germany, Poland and the Czech Republic. Therefore, Amazon sellers who use this service must be registered for VAT in Poland and the Czech Republic as well as in Germany. This also means that regular pre-registrations, Intrastat reports, VAT returns etc. must be taken care of.<\/p>\r\n\r\n\r\n\r\n

Reaching the VAT Registration Threshold<\/h3>\r\n\r\n\r\n\r\n

If you are exporting from one EU country to another, and the annual EU-wide delivery threshold<\/a> is reached, then you must also apply for a VAT ID in all countries you deliver to. This rule applies unless the seller is registered for the One-Stop-Shop<\/a>.<\/p>\r\n\r\n\r\n\n\r\n\r\n\r\n

>Here you find more about VAT, VAT rates and Thresholds in the UK<<\/a><\/p>\r\n\r\n\r\n\r\n

When can I apply for it?<\/h2>\r\n\r\n\r\n\r\n

There are 2 possibilities, or rather points in time, when one can apply for a VAT number: directly at the foundation of the company or afterwards.<\/p>\r\n\r\n\r\n\r\n

If you need a VAT ID when you start your business activity, you have to indicate this when you start up – and usually this can be roughly estimated at this stage. So you just have to check one more box in the application form and you will automatically be assigned a VAT ID.<\/p>\r\n\r\n\r\n\r\n

If you decide on a VAT ID only later, you can apply for it at any time at the responsible tax office.<\/p>\r\n\r\n\r\n\r\n

In this context, it is worth mentioning that the timing of the application 1. has an impact on the duration until issuance, and 2. some economic actors are forced to take care of it when starting their business activities!<\/p>\r\n\r\n\r\n\r\n

How to apply for a VAT number?<\/h2>\r\n\r\n\r\n\r\n

The application for a VAT number can be submitted in most EU countries either online or in writing by post. The requirements are similar or the same in most countries, but in some cases there may be country-specific peculiarities – especially for “follow-up” tasks, such as submitting reports or advance returns.<\/p>\r\n\r\n\r\n\r\n

Where do I register for VAT?<\/h2>\r\n\r\n\r\n\r\n

As already mentioned, VAT numbers can be applied for online or by mail. In both cases, the point of contact is the HMRC (UK), the Federal Central Tax Office (Germany) or the respective responsible tax office. Especially if you decide to apply for a VAT ID at the time of founding, it makes more sense to apply directly to the local tax office.<\/p>\r\n\r\n\r\n\r\n

How to register for VAT<\/h2>\r\n\r\n\r\n\r\n

When deciding to register for VAT in the United Kingdom, there are basically two ways to apply for a VAT identification number: in paper form by post or online.<\/p>\r\n\r\n\r\n\r\n

Apply for a VAT number online<\/h2>\r\n\r\n\r\n\r\n

Most people apply for a VAT number online. This can be at a local tax office, at the HMRC or with service providers like hellotax<\/a>.<\/p>\r\n\r\n\r\n\r\n

Without Government Gateway ID:<\/h3>\r\n\r\n\r\n\r\n