EU VAT Return

For companies with non-resident European Union VAT numbers, there is a requirement to submit periodic filings detailing VAT transactions, and pay over any VAT due. Again, exact requirements vary enormously from country to country.

What goes into a non-resident's EU VAT return?

Click here if you would like free guidance on the detailed requirements for European VAT returns

As with domestic VAT returns, companies are expected to report all purchases and sales that fall within the scope of VAT in the relevant country. The complexity around this falls into two categories:

  • Treatment of transactions
    Under the local VAT rules, various transactions may be treated differently for VAT - some will be charged at full rates, whilst some may be zero rated under simplification rules. This needs to be clearly shown in the VAT return.
  • Compliance rules
    There are very strict rules in each country governing issues such as: invoice formats; tax points; and exchange rates. In many EU countries, simple infringements of these rules will often result in punitive, automatic fines.

Payments of VAT

Once a return is submitted a payment is required, generally at the same time as the return submission. For most EU countries this is relatively simple, and just requires a bank transfer from the home country.

However, several EU states require payments through a local bank account, e.g. Spain and Greece. Many others will only repay VAT credits to a local bank account, e.g. Poland and Belgium.

How TMF can help

TMF completes around 2,000 EU returns per quarter for its clients across Europe. Its multi-national staff are focused on staying up-to-date with the changing VAT treatment and compliance issues in all of the countries. This helps clients stay compliant, and keeps the risks of error down to a minimum.

TMF VAT specialises in helping companies with multiple registrations. Its staff can serve as a single point-of-contact for numerous countries, taking out much of the aggravation from international business.

For clients requiring local payment facilities, TMF can organise these through secure client accounts in each country.

Click here to read our EU VAT Return Case Studies to see how TMF can assist.

Intrastat and EC sales list

Companies moving and selling goods around Europe may also be required to complete additional statutory reporting.

Click here to read more about Intrastat and EC Sales Lists across the European Union.

To learn more, please contact one of our VAT experts for FREE guidance to see how we can simplify EU VAT for you. You may also refer to this site which provides expert VAT compliance guidance and news on European VAT.
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