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Thursday, 27 May 2021 18:25

About Tax Agency in Europe

European tax services European tax services pixabay

When European companies perform operations subject to VAT in a member state of the EU that is not their country of establishment, they have the legal obligation to obtain an intra-community VAT number in this EU member state.

Thus, the operations that will require European companies to obtain an intra-community VAT number in a different EU member state are as follow:

 

  • Importation of goods from non-EU countries;
  • Exportation to countries outside of the EU;
  • Purchases of goods from EU member states;
  • BtoB supplies of goods to EU member states;
  • BtoC supplies of goods and services to individuals of this other EU member state, including via Marketplaces;
  • Failing to appoint a tax agent is heavily punished by the European tax administrations and makes companies ineligible for VAT refund. Moreover, please do note that European partners (furnishers, suppliers, clients, marketplaces…)
  • systematically refuse to deal with non-European companies that failed to appoint a tax representative, as it would be too risky for them.

WHY APPOINT A TAX AGENT EUROPE?

Companies established within the EU are always exempted to appoint a tax representative. However, companies established in the EU who have the obligation to register for VAT in a different EU member state still have the possibility to appoint a tax agent. Said tax agent will manage on the company’s behalf all their VAT-related obligations in this member state: obtaining a VAT number, filing VAT declarations, submitting VAT refund claims, etc… Intra-community VAT is a complex subject, constantly evolving. It requires an extremely detailed expertise. Mistakes can lead to drastic financial consequences: tax inspections, loosing eligibility for VAT refund, exemptions being called off, having to pay additional taxes, having to pay interests of late payment, etc… For such reasons, appointing a tax agent specialised in the concerned member state’s VAT is essential in order to secure operations liable for VAT in said member state.

CHOOSING TAX AGENT EUROPE IS A PRETTY SAFE CHOICE!

In the very particular field of intracommunity VAT, appointing a tax agent is important.By choosing ASD Group, you will receive support from a team of intra-community VAT tax experts. They will back you up day to day and help secure your activity. We will be the guarantor of your business in the EU and of your reputation with the European tax services.