Let’s clear up any confusion around VAT by answering the questions we get asked the most.
What is ‘VAT’?
VAT (Value Added Tax) is a type of consumption tax charged on items that people buy.
All 27 EU member states have VAT. And many other counties 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 rate. VAT collected on online sales is a key source of revenue for any government.
How is VAT collected?
The seller charges their customers VAT, and then pay this to the government when they file their VAT return.
When do I need to register for VAT?
If you’re trading in a country where your company is not established, you need to register as soon as you hold stock within an EU country for onward sale to customers. Holding your stock within a country triggers a taxable supply and therefore, a VAT registration.
The other reason you may need a registration is because you have exceeded a distance selling threshold. If you exceed a distance selling threshold within a calendar year, you have to register in that country and begin charging the local VAT rate on sales.
If you are unsure whether you have crossed a distance selling threshold, we can check them for free!
How long will it take for me to get an international VAT registration number?
Once we have all the paperwork, the registration process can take anywhere between 3 – 10 weeks to receive a VAT registration number, depending on the country. It’s best to plan ahead and make sure you return the documents as soon as possible so we can get the registration sent to the tax authorities.
Ready to get started? Let’s get your business registered!
How much will it cost?
How often will I have to submit a VAT return?
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.
What if I don’t get the information you need to compile the VAT returns to you on time?
If we don’t get the correct data sent to us in time, the tax authority can issue penalties or fines that you have to pay in addition to any VAT you owe. Our new software ensures we can collate the sales data directly from the channels you sell on time. We do, however, need you to supply other information such as import documents. Your client manager will work closely with you every time a VAT return is due to ensure we have everything we need to keep you compliant.
What is a fiscal representative?
If you’re registered for VAT in another country, you may need to appoint a fiscal representative who is jointly and
severely liable for the VAT owed by a non-EU based business. They are a local entity who takes on the liability of any outstanding VAT. Not to worry – we work with trusted fiscal representatives when needed to keep all VAT communication in one spot!
Do you have an Affiliate programme?
Yes, we do and we would love the opportunity to work with you. We pay commission for every client signed up who was introduced by you. Visit our partner page to find out more, or contact us on: firstname.lastname@example.org