+++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Poland - 1% VAT increase to 23% +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ UK - VAT to increase from Jan 2011 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ India - GST to be implemented April 2011 at three standard rates +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Canada - HST introduced in British Columbia and Ontario +++ Hungary - implements insurance premium tax +++ Bulgaria - Intrastat reporting thresholds increased +++ UK - HMRC backs down on VAT on InsuranceWide comparison website +++ France - changes requirements for fiscal rep on insurance +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ +++ EU adopts new VAT Directive on electronic invoices +++ Portugal - increased VAT by 1% to 21% +++ New Zealand - increases GST to 15% +++ Spain - VAT rate increases to 18% +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Greece in second emergency VAT increase from July +++ Hungary - increased VAT rate to 25% +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Mexico - simplification of VAT reporting +++ EU - ECJ court ruling imposes VAT on salary sacrifice schemes and vouchers +++ Italy - extends reverse charge on VAT for foreign companies +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Panama - increases VAT to 7% +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ France - National Guarantee Fund levy on insurance premiums is rising +++ Mexico - increases VAT 1% to 16% +++ Estonia - 2% increased VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ India - sets CENVAT at 10.3% Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ India - many new activities brought into Service Tax regime +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Mexico - simplification of VAT reporting +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase to take standard rate to 23% from 2010 +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovakia - calls for increased VAT rate from the IMF +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - VAT rate increase to 8% in 2011 +++ Ukraine - VAT e-filling obligatory +++ United Kingdom - VAT registration threshold increased to GBP70k +++ Seychelles - introduction of VAT at 10% in 2012 +++ Jersey - call for rise in 3% VAT rate +++ Romania - imposes intra-community supply registers +++ India - GST implementation now planned for April 2011 +++ UK - wins ECJ case on restricting VAT refunds to non-EU banks and insurers +++

EU VAT Registration

Companies selling goods & services across Europe's borders usually do not have to register for VAT in the country of the customer. This is part of free market measures introduced by the EU to encourage trade in the region.

Click here if you would like a free guide on EU VAT registration requirements.

There are however important exceptions - complicated by inconsistent interpretation of the rules between the member states.

Examples of when companies have to register in a foreign country where they are doing business and do not have an establishment, ('non-resident'), include:

  • Holding stocks abroad and then selling it to local customers;
  • Buying and selling products in a foreign country without the goods leaving the country;
  • Organising live events (conferences, artistic, education) abroad; and
  • Distance sellers of goods to individuals (e.g. internet retailing).


It is essential that companies determine whether they should be registered. The penalties for non-compliance and late registrations can be immense, and VAT authorities are paying increasing attention to this area with the massive growth of 'missing trader' fraud.

What is involved in an EU VAT registration?

Companies must submit a formal application, along with key legal documentation, to the relevant local VAT authorities to obtain a VAT number.

Each EU country is different in its requirements for this. However, submissions should generally be in the local language, and companies may have to provide answers to follow-up questions before the number is granted. With the threat of missing trader / 'carousel' fraud, countries are becoming increasingly cautious about issuing VAT numbers to foreign companies.

How can TMF help?

TMF stays on top of the varying requirements for the 27 EU countries' VAT registration procedures. Its team has obtained several hundred numbers for its clients, and so is intimately aware of the exact requirements. This is crucial to ensure that a registration takes only 2 weeks, and not 3 months.

Typically, TMF needs the following:

  • A company's formation documents;
  • Its local VAT / tax certificate;
  • Background on the planned operations; and
  • A letter of authority appointing TMF as the VAT agent.


In many countries, e.g. Spain and Poland, some of these documents need to be verified with a Public Notary. TMF can advise you on all of these details.

The European VAT registration is granted - What next?

Obtaining a non-resident VAT number may seem a huge challenge. However, this is only the start of the VAT compliance procedure. 

Click here to read the VAT Returns section to see what is required next. 

Click here also to read our VAT Registration Case Studies to see how TMF can assist.

Non-European companies

Companies from outside of the EU often have to register for VAT too - sometimes in several countries.

A number of countries require non-EU companies to appoint a 'Fiscal Representative' to handle the registration. TMF can provide this service throughout Europe.

To learn more, contact one of our VAT experts:
vat@tmf-group.com
+44 (0)870 067 8881
 
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