- A VAT number is necessary for trade between EU countries despite no VAT being charged on transactions between registered businesses.
- VAT exemption requires both parties to have valid VAT numbers, with the buyer responsible for calculating and reporting VAT in their country.
- Sellers must document that goods are sent to another EU country and that the recipient is VAT registered, including VAT numbers on invoices and reporting transactions.
- Without a valid VAT number, transactions may be treated as domestic sales, risking double taxation or delays.
- Selling to individuals or unregistered businesses requires the seller to add VAT according to their country’s rules or specific EU e-commerce regulations.
- A VAT number is part of a trust system, proving a business is registered and compliant with tax authorities.
- For receiving goods from an EU supplier, a VAT number allows goods to be sent without VAT, with reporting in the buyer’s VAT return.
- Moving goods between EU warehouses requires VAT registration in the storage country, even if the movement itself is VAT-free.
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
