VAT COMPLIANCE

What is VAT compliance?

VAT is a complicate business at the most of times. It makes more complicate with its various sub-categories. It apply to different industries and provide differing means of process. There are many different schemes that could have massive consequences for your business. We will advise you on the best global VAT compliance schemes for you. It makes sure that the system is always working to your advantage.

Our expertise task:

• Providing cross border VAT advice.
• VAT registration and filling within the EU or global are eligible to be zero-rate. 
• EU VAT number on goods imported from within or outside the EU can be reclaim.
• Advising international businesses on transactions and VAT planning in their European commercial operations.
• Supporting international businesses with their European VAT compliance check. 
• Designing bespoke and engaging VAT training packages.

EORI Number

EORI number from an UK and EU country, if your business will make declarations or getting a customs decision in the UK and EU. Get this from the customs authority in the UK and EU country. Where you submit your first declaration or request your first decision.

VAT Return

Once register for VAT in an EU country, Canada, USA Australia. Your business will need to submit regular VAT returns to the appropriate local tax authority. VAT return rules vary between countries. So, in order avoid fines and penalties being impose for non-compliance. It is crucial that you are aware of the global VAT compliance for each country in which you trade.

VAT Deregistration

You must cancel your VAT registration if you’re no longer eligible to be VAT registered. For example: 

You stop trading or making VAT taxable supplies.

Tax office will notify you when you have successfully VAT deregistered. 

Make sure you do this before updating your VAT settings and submitting your final VAT return. There is no way of undoing VAT deregistration in Tax office once your final VAT return has been filed.

Fiscal Representation

In most EU member states and many countries worldwide, foreign traders are obligate to appoint a fiscal representative. When business register for VAT. This is particularly relevant where goods exported by foreign traders are imported into foreign countries. Our specialist global VAT compliance teams collaborate to provide clients with the highest calibre of advice. We are big enough to have deep knowledge in a broad range of niche fields and small enough to offer a personal approach. Note that your fiscal representative will be jointly and severely liable for any VAT you will owe, so prepare for additional fees, which may include a bank guarantee.

International VAT Recovery

If you are charge VAT on business activities in an EU country where you are not establish, you may entitle to have the VAT refunded by the authorities in that country. Some EU countries do not allow refunds for certain categories of expenditure (e.g., restaurant costs, entertainment activities, cars, fuel, etc.).

The business is not establish in the EU. You charge VAT on business activities in an EU country, where you have not supply goods or services. You may entitle to have the VAT recovered by the authorities in that country. For example, a company established in Switzerland takes part in a conference in Belgium and is charged Belgium VAT on their hotel bill.

Who pays vat on imported goods?

Import VAT is import duty the same as VAT. Import duty is based on the type of goods you are importing, the country they originate from and their value. Question is, when do I pay VAT on imported goods. There is no import duty for most imports from EU countries. Any duty must be paid before the goods are released by customs, unless you have opened a deferment account with HMRC.

Paying VAT on imports is a fee currently paid on goods sent to the UK from abroad. You will pay ‘import VAT’ on the total cost of the item and shipping and handling costs accrued when the courier brings the purchase to the UK. The usual UK Import VAT rate is 20%.

As these charges are added up after purchase, the total cost of ordering your items will start to increase and could leave you with unexpected fees on items you’ve bought online.

Intra-Community Supply of Goods

When goods sold and deliver to another EU VAT registered business the reverse charge applies. To zero-rate the invoice, you must make sure that the customer’s VAT number is valid. The number can verify on the European online VIES VAT system.

The Reverse Charge applies, the recipient of the goods makes the declaration of both their purchase (input VAT) and the supplier’s sale (output VAT) in their VAT return.  In this way, the two entries cancel each other on the VAT return.

Intra-Community Supply of Services (Reverse Charge)

According to EU VAT rules, several types of services are liable to reverse charge. As a main rule VAT liability in relation to B2B services is where the customer is located. To zero-rate the invoice, you must make sure that the customer’s VAT number is valid. The number can verify on the European online VIES system.

When reverse charge applies, the recipient of the services makes the declaration of both their purchase (input VAT) and the supplier’s sale (output VAT) in their VAT return. In this way, the two entries cancel each other on the VAT return.

Triangulation

The EU simplification measures for triangulation transactions have been adopted in several EU countries. Triangulation occurs when there are three companies involve in successive transactions, with a single movement of goods, and they are VAT register in three different EU member states.

Therefore, intra-community acquisitions made by a middleman are not liable to Germany VAT.  If Germany is the country of arrival, given that the middleman (party B in an ABC transaction) is not VAT register in Germany and holds a VAT number in another member state and that goods are move directly from party A to party C.