VAT (Value Added Tax) is a type of consumption tax charged on goods and services supplied for consumption in the EU. The idea is that VAT is always ultimately paid by end consumers rather than businesses that merely collect and remit the tax to the authorities.

All 27 EU member states have VAT. And many other countries around the world have adopted a similar system. Each country has a different name for it. In France, it’s known as TVA. Spain calls it IVA. And in Germany, it’s Mwst. Each country also applies its own VAT rates. VAT collected on supplies is a key source of revenue for any government.

For more information on VAT numbers across the EU, take a look at our EU VAT Numbers 101.

Being an indirect tax, VAT is collected as a percentage of the price paid by customers to sellers who then remit the VAT amount to the tax authorities when filing their VAT returns.

As soon as you are making a taxable supply in a member state where you are not established, you will need to register for VAT in that country. Taxable supplies include distance sales to consumers, supply of services, intra-community acquisitions, moving goods into a country for onward supply and more.

It is important to note, that you need to charge the local VAT rate where your customer is based. VAT rates vary from country to country in the EU so be sure to check these first. 

There are standard, reduced and zero VAT rates which vary from country to country.  To make things easier, we’ve collated the various VAT rates into a downloadable EU VAT Rates PDF.

If you’re unsure which VAT rate is applicable to your goods or services, get in touch and we can help you to determine the correct VAT rates to apply.

This depends on which country you are registered in. Some countries will ask for VAT returns each month, others – quarterly or even bi-monthly. At SimplyVAT.com, we will ensure you never miss a deadline through our timely email reminders.

Yes, penalties and interest charges can be issued for both late submissions and late payments including backdated VAT returns.  The amount of penalty and interest charges differ from each tax authority. 

In order to facilitate trade between EU countries, the EU created the Reverse Charge mechanism.  The Reverse Charge moves the responsibility for the recording of a VAT transaction from the supplier to the buyer for the good or service sold between 2 businesses.   This removes the burden of paying VAT upfront for the business customer and eliminates the need for the seller to VAT register in the business customer’s country.  

The European Commission maintains a website that can be used to check the validity of VAT numbers, including Northern Irish VAT registration numbers.

If you need to find out if a customer’s VAT number is valid – please visit the EC VIES Website.

Some EU tax authorities require a non-EU business to appoint a Fiscal Representative to represent them for VAT purposes. A Fiscal Representative is jointly and severally liable for any VAT owed by the business it represents.

At SimplyVAT.com, we work with trusted fiscal representatives when needed to keep all VAT communication in one spot for our clients.

When importing into certain countries, import documents will be completed and issued on the import of the goods.  Within the EU, Switzerland, Norway, Iceland, Turkey, the Republic of North Macedonia and Serbia, there is one standard import document called the SAD (Single Administration Document) used for customs declarations. In the UK, the equivalent document is known as a C88. 

Intrastat stands for ‘Intra-community statistics’ and is a mandatory report (once thresholds are exceeded) requested and used by the EU authorities to monitor the economic health of the EU countries.