- VAT numbers are necessary for trade between EU countries to simplify trade and limit VAT obligations
- VAT exemption in EU trade is conditional on both parties having valid VAT numbers, known as reverse charge mechanism
- Sellers must document that goods are sent to another EU country and the recipient is VAT registered
- Transactions must be reported in VAT returns and EC Sales lists to avoid issues with tax authorities
- Without a valid VAT number, transactions may be treated as domestic sales, risking double taxation or delays
- Selling to individuals or unregistered businesses requires adding VAT according to local or specific EU e-commerce rules
- A VAT number serves as proof of business legitimacy and helps build trust between trading partners
- Handling VAT for goods received from EU suppliers involves using a VAT number and reporting in the buyer’s VAT statement
- Moving own goods between EU warehouses requires VAT registration in the country where the goods are stored
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.
