Registering as a VAT payer in another EU member state

It could be necessary for businesses that operate throughout the European Union (EU) to incorporate their company with a VAT id in another EU nation. The standards for this differ from nation to nation but are dependent on the EU’s Regulation, which each participating country should incorporate into domestic law.

Essential to register

The conditions to file for the tax ID are the same in every nation as a component of attempts to unify the European VAT structure and promote the movement towards an EU-unified economy. An overseas company is advisable to apply for a domestic tax number in the following circumstances:

  • If a corporation is shipping stuff to a European nation.
  • If an international firm is purchasing and offering products in another nation. 
  • Keeping products in storage for clients in other EU nations. 
  • Conducting seminars or an exhibition with an admission fee. 
  • The internet-based sale of products; the provision of tools in a restricted few circumstances.

Firms from the EU and firms from outside the EU must meet the same requirements.

Registration in third-countries

VAT certification varies by nation and is governed by local law. Each nation has a unique VAT number that starts with its national identifier; in the case of Germany, this would be GER then the 8–10-digit figure. Following are the few other EU states and their EU registration requirements:

Hungary 

A multinational corporation must file in Hungary for all duties, not only VAT. The national identifier HU12345678 is where the Hungarian Tax code starts. Along with the pertinent official paperwork, the accompanying documentation must be submitted to the Hungarian tax department: 

  • A duplicate of a value-added tax license;
  • The founding articles;
  • A duplicate of the business’s national trade license;
  • A statement outlining the business’s economic operations; 
  • An authentic sample signature from a business representative; and 
  • An effective authorization. 

A firm can start operating and collecting Hungarian VAT after obtaining a number, but it must abide by Hungarian laws and submit regular returns.

Estonia 

The Estonian VAT identifier begins with the letters EE and nine-digit numbers. For foreign businesses doing business in Estonia that are Tax listed in their homeland, the licensing requirement is zero. From the time they make their initial sale, companies must incorporate. For businesses selling products to clients in Estonia online, the annual limit is €35,000. The necessary forms must be completed and sent to the Estonian revenue authorities along with the supporting records: 

  • A certificate attesting to the business’s other EU VAT registration;
  • Articles on organizations;
  • A duplicate of the business’s national trade registration; 
  • Proof that the business will produce taxable supply in Estonia; and
  • A duplicate of the contract for the financial agent.

Poland

The code begins with the prefix PL and then has ten digits in Poland. The need to file for value-added tax in Poland may arise in several situations. The following is a selection of the most frequent situations:

  • Polish imports of goods from non-EU countries;
  • Making purchases and buying products in Poland;
  • Selling goods made in Poland to buyers abroad;
  • Polish consumers buy goods from other EU countries; 
  • Preserving and storing goods in Poland for trade, auctioning, or marketing;
  • E-commerce transactions to Polish clients are subject to the distance dealing Tax file limits; and
  • Planning conferences in Poland that charge admission for participants or delegates.

The normal tax ratio in Poland is 23%. Discounted prices of 8% and 5% are available for some goods, literature, magazines, and a limited few other products. Polish value-added tax does not apply to, for instance, banking or postal activities.

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