What is Intra-Community VAT?
Intra-Community VAT, also known as intra-EU VAT, is an individual identification number. It is a type of value added tax (VAT) that applies to goods and services traded within the European Union (EU).
This tax is issued by the tax office and must be shown on the company's invoices and on the exchange of goods and VAT returns. This VAT is designed to ensure that EU businesses are treated fairly and that the movement of goods and services within the EU is not impeded by national taxes.
Intra-Community VAT is a form of indirect tax, which means that it is not paid directly by the consumer but is included in the price of the goods or services exchanged. The tax is collected by the seller and then remitted to the government.
Intra-community VAT : what is it for ?
Intra-community VAT is required for international transactions within the EU. It is a destination-based tax, which means that the tax is applied at the rate of the country where the goods or services are consumed, rather than the country where they are produced.
This means that when goods or services are traded within the EU, tax is applied at the rate of the country where the goods or services are consumed. The tax is not applied at the rate of the country where the goods or services are produced. Thus, EU businesses are not disadvantaged by the tax systems of the countries in which they are established.
In addition, intra-Community VAT helps to ensure that the free movement of goods and services within the EU is not impeded by national tax systems. This is important to promote fair competition and facilitate trade within the EU.
For these reasons, intra-Community VAT is an important part of the EU system for facilitating the movement of goods and services within the Union, and is necessary for international transactions within the EU.
Intra-community VAT: for whom?
The Intra-Community VAT is mandatory for the company that has to pay VAT and that is domiciled within the European Union. Companies that are not subject to VAT can, if they wish, apply for an Intra-Community VAT number.
This number becomes mandatory when the amount of acquisitions made in the EU exceeds 10 000 € per year.
How to obtain an intra-community VAT number?
In order to apply for intra-community VAT, you must register for VAT in the country where your company is established. The company tax department (SIE) automatically transmits the intra-Community VAT number to the company when it registers.
Once registered, you will receive a VAT number, which you can use to identify yourself to other companies within the EU.
How to be reimbursed for intra-community VAT?
In order to claim the refund of the intra-Community VAT you have paid, you must keep records of all your business transactions. This means: the VAT number of the company you traded with, the value of the goods or services traded and the amount of VAT paid.
Once you have all this information, you can submit a VAT return to the tax authorities in your country of registration. This declaration will include details of the intra-community VAT you have paid and you will be able to claim a refund of the VAT paid on goods and services consumed in another EU country.
In some cases, you may also be able to claim a refund of VAT paid on goods and services imported into the EU from a non-EU country. This will depend on the rules of the country where your business is based, so it is important to check with the relevant tax authorities for more information.
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