VAT FOR
COMPANIES

KNOW YOUR RIGHTS

IF YOU PLAN TO DO BUSINESS IN AN EU COUNTRY, YOU ARE ENTITLED TO CERTAIN RIGHTS.

Each EU country is responsible for setting its own VAT rates. There are various types: standard rate, reduced rate, and special rates.
Normally, you must pay VAT on all goods and services, up to and including the final sale to the consumer.
For EU-based companies, VAT is chargeable on most sales and purchases within the EU.
VAT is not charged on exports to countries outside the EU. In this case, it is paid in the country of import. You need to provide evidence that the goods were exported to a country outside the EU.
Find out more: https://europa.eu/youreurope/vat_en

VIES (VAT Information Exchange System) is a search engine that allows you to check VAT numbers in the EU. The data is received from national VAT databases when a search is made from the tool.
You can check if a business is registered to trade crossborder within the EU with the VIES on the web tool.
If the search query gives a ‘valid’ response, the VAT information will be displayed in the VIES tool.
If it is an ‘invalid’ response, it means the VAT number you seek to validate is not registered in a relevant database. This could be because the:
- VAT number does not exist;
- VAT number has not been activated for intra-EU transactions;
- registration is not yet finalised.
If you cannot find the information you need on VIES you should contact the relevant national authority for more information. They can confirm if the VAT number is valid or not, and if the number is associated with a certain name and address.
Find out more: https://europa.eu/youreurope/vies_en

Selling to businesses: you do not normally charge your customers VAT if selling services in another EU country. Your customers will pay VAT on the services received at the applicable rate in their country (using the reverse charge procedure).
- If you sell goods to another business and these are sent to another EU country, you do not charge VAT if the customer has a valid VAT number.
- You may still deduct the VAT you have paid on your related expenses (goods/services bought specifically to supply that service).
Selling to consumers: if you sell goods in another EU country, you need to register there and charge VAT at the rate applicable in that country (unless the total value of sales in that country falls below the set limit for the year in that country).
- Normally, you must charge your customers VAT at the rate that applies in your country (excluding telecommunications, broadcasting and electronic services, which are taxed in the country where the consumer is located).
If you buy goods for business purposes from a supplier based outside the EU, you must generally pay VAT at the point of import, for example the port of arrival of the goods.
If you buy and receive services for business purposes in another EU country, you must account for the VAT on the transaction as if you had sold these services yourself at the applicable rate in your country. Normally, you will be able to deduct this amount later.
Find out more: https://europa.eu/youreurope/crossvat_en

If you are charged VAT on business activities in an EU country where you are not established, you may be entitled to have the VAT refunded by the authorities in that country.
Some EU countries don’t allow refunds for certain types of expenditure, such as restaurant costs, entertainment activities, cars, and fuel.
You must claim your VAT refund online via the authorities in the country where your business is based. If you are eligible for a refund, the authorities will pass on your claim to the authorities in the other country.
The VAT refund procedure is harmonised at EU level. To ensure you have the correct information, you should check the national contact points for each specific case.
If a country is late in refunding VAT, you might be able to claim interest.
When a claim is submitted, you must enter the standard codes used to describe the type of goods/services you paid VAT on, such as fuel, road tolls and other road user charges, accommodation, or admission to fairs and exhibitions.
Find out more: https://europa.eu/youreurope/vatrefund_en

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