FAQ (Frequently Asked Questions)
Knowledge Base
 download passport updated to 01/01/2012  |
eurotax Frequently Asked Questions "FAQ"
published in January 2006, updated in February 2011) 1 - What documents are necessary for registration with the French tax authorities?For entities established within the European Union
For entities established within the European Union
2 - What is the responsibility of the fiscal representative in France and does he require a bank guarantee to cover this responsibility?
For entities established outside the European Union The responsibility of the tax representative is joint and unlimited, therefore a bank guarantee is generally required. For entities established within the European Union There is only an obligation of means, therefore no bank guarantee is required. In both cases, since the generalization of the reverse-charge mechanism (Instruction n°105 dated 23/06/2006 in effect as of 01/09/2006), the administrative tolerance known as “respondent” allows to invoice with French VAT. In that case, the respondent is responsible vis-à-vis the fiscal administration in the same way as the fiscal representative. 3 - Can we register and declare past operations (retro activity)?For entities established outside the European Union This is possible, subject to recent activity (a few months) and the agreement of the tax authorities. For entities established within the European Union This is possible for operations dating back less than three years without prior agreement from the tax authorities. 4 - How long is it to obtain a VAT number in France (once all legal documents are provided)?For entities established outside the European Union Traditionally: 3 to 4 weeks. Special service developed by eurotax: registration within 3 (three) working days For entities established within the European Union Registration takes 4 to 6 weeks. 5 - May a foreign company start taxable operations (sales, purchases, imports, exports, intra-community trade, etc.) before being allocated a VAT number?It is possible to start operations if the registration process has begun. 6 - What is the structure or the particularity of invoices in France?Invoices are structured in accordance with directive 2001/115/CE. As of 0101.2013, new rules will enter into force (Directive 2010/45/UE). 7 - What information must I provide (sales invoices, purchase invoices, etc.) and how often? On which dates?All documents to be provided are listed by contract. Every month, along with a copy of your TVA return the deadlines to be respected for the following month are provided. 8 - When, to whom, how and how often is French VAT paid in France?In order to ensure a best follow-up of the operations, when we act as a fiscal representative or as a tax agent in France, the TVA and Intrastat returns are lodged on a monthly basis. The payments or TVA claims are subject to the same conditions. 9 - When, from whom, how and how often can French VAT be recovered in the event of credit? What are the payment deadlines for the tax authorities?Since 2009, French VAT credit can be claimed through a TVA claim introduced with the monthly TVA return. Usually, reimbursements occur within 4 months. 10 - When, how and according to what schedule is it possible to cancel a registration in France?It is possible to de-register once the company undertakes no further taxable operation and at the end of the contract with the fiscal representative/fiscal agent.
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(published in September 2006, updated in February 2011) 1 - How many categories of applicable VAT rates are there within the European Union?There are four different types of VAT rates in Europe: the normal rates, the reduced rates, the super-reduced rates and the parking rates. 2 - Are the countries of the European Union free to set themselves their own VAT normal rate?Each country can fix its VAT normal rate provided it is between 15 and 25 %. Here are the actual rates as of January 2011: Passeport eurotax 3 - What is a parking rate?The parking rate is a rate that cannot be lower than 12% and can be applied provisionally by the members of the EU to enable them to apply more easily in the future the normal rate for some goods or services. Below is the list of the parking rates used on January, 1st 2008:
4 - How can I be sure the VAT number of one of my European customers is correct?The validity of a VAT number within the European Union can be checked through the "VAT automatic exchange system of information" (VIES). The system can only confirm the validity or not of a number within its database. A few national web sites can also be currently reached. It is the case in Germany (only for those with a German VAT number), Spain (where the search is restricted to the Spanish numbers) and Italy. 5 - Can a company based in France choose a fiscal agent to establish its taxable operations in Germany and Switzerland?A fiscal agent can be chosen within any European country on condition that the latter belongs to the European Union of 27 countries as it is the case for Germany. On the contrary, since Switzerland does not belong to the Union, it will be necessary to refer to the bilateral fiscal convention between France and Switzerland. 6 - Are there some countries of the European Union in which the fiscal representation of a liable entity established outside the Union is not an obligation?No. The Directive 77/388/CEE dated 17/05/1977 (abrogated by the Directive 2006/112/CE) has left no room for exception whatsoever: any liable entity established outside the Union has the obligation to choose a fiscal representative in each country of the EU where it undertakes taxable operations. 7 - Our company already has a fiscal representative in Italy and will soon undertake operations in France. Can our Italian agent represent us to the French fiscal authorities?No, in France the fiscal representative must be established on the French territory so that it can represent a foreign company. 8 - Our company, based in Belgium, has been selling services in England for thirteen months but is still not registered for VAT. Does it have a legal obligation to do so?The VAT registration becomes an obligation as soon as a defined threshold is reached. If the total value of the services provided by the Belgian company during the last twelve months is over that threshold, then it has to register. 9 - A French company has sold goods to a Spanish company. The merchandise remained in Portugal during the sale. Which VAT must be invoiced?As the principle of territoriality applies, the sale of goods is subject to Portuguese VAT. 10 - Which VAT must be invoiced for the distant sales (Intra-EU deliveries of goods to non-liable entities) by a liable entity established within the European Union?If the turnover threshold set individually by each country of destination* has not been reached, then the VAT of the country of departure of the goods applies. Once over the threshold, the VAT of the country of arrival applies (and there is an obligation to register to the VAT of the country of arrival of the goods). Another option enables to apply the VAT of arrival for the whole distant sales made. * Instances of thresholds adopted by various members of the EU : Germany and France : 100,000.00 euros exclusive of tax Belgium and Spain : 35,000.00 euros exclusive of tax Italy : 27,889.00 euros exclusive of tax United Kingdom : 70,000.00 pounds exclusive of tax
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(published in March 2006, updated in February 2011) 1 - What is a level of declaration?The level of declaration conveys the degree of accuracy to be observed for the completion of your Intrastat reports. It is determined according to the amounts of Intra-EU introductions and deliveries for a given period. 2 - On which period should I evaluate my Intrastat level of declaration?The period to be taken as a reference for the evaluation of the Intra-EU introductions and deliveries carried out is the previous calendar year because the thresholds determined by the Customs are yearly amounts. In case a threshold is exceeded in the course of the year on a given month, the company will have to observe the regulations of the superior level on that month itself. 3 - May the level of declaration table defined by the Customs be modified?Yes, certain levels of declaration can be modified. Thus, on 01/01/2006 the threshold for introductions has been raised from 100 000 euros up to 150 000 euros. The same was done for the limit of level 4 for deliveries. 4 - Can I pool together some data if some of my invoices are for the same customer/supplier?On the declaration forms you can have only one line for each code of goods. Thus, data for movements showing the same destination/provenance, same delivery terms, same means of transport and same customer VAT number can be pooled together. 5 - What should I do if an invoice value is declared erroneously on my Intrastat report?In theory, for introductions if the mistake is about a difference of less than 8 000 euros then no amendment is required. In practice, so that your Intrastat reports and your VAT returns agree - self-assessment of the VAT- it is recommended to correct the mistake via an amended declaration. For deliveries, whatever the amount of the erroneous value, it must be amended via an amended declaration as well. 6 - I failed to declare one invoice dated December 2005, can I add it to my January 2006 Intrastat report?No, a complementary declaration must be filled in and sent to the Customs. According to the law, each movement must be declared on the proper period. 7 - I send photos in all the EU and the mass is almost nil (less than 20 gr). How should I fill in the "mass" box for a delivery Intrastat report when the mass is not significant?Customs will not accept nil masses on declarations. Conventionally, "0" should be replaced by "1". The measuring unit being kilo, you will then declare a minimum mass of 1 kg. 8 - Should I fill in an Intrastat report when I send goods from France to another EU member-state and that the goods are returned to me further some manufacturing?Yes a report is requested. Any physical flow of goods is to be declared on the Intrastat report. In case of manufacturing in another EU member-state, the first report is a delivery declared under code 29 - non-taxable movement for deliveries. The report for goods returned further to manufacturing is an introduction declared under code 19 - non taxable movement for introductions. 9 - Are there cases when an Intrastat report is required whereas goods do not transit through France?Yes, in case of triangulations, that is, in the context of an exchange involving 3 economic operators established in 3 different member-states one of them being an intermediary. If the French operator is the intermediary then the goods do not transit through France but a delivery report is compulsory. 10 - Should I declare my Intra-EU operations immediately on my VAT return or should I wait until all the Intrastat data are made available to me?For Intra-EU acquisitions: According to a French ruling issued on 17.02.2009, the self-assessment must be immediately carried out. Otherwise, in order to avoid any penalty, an amended VAT return must be introduced afterwards. Of course, the above does not exempt you from lodging your Intrastat returns for arrivals – as soon as the €150 K threshold is reached – otherwise, the €750 penalty per Intrastat return will be applied. For Intra-EU dispatches: Here, the only risk incurred is linked to a potential audit generated by the Customs authorities (in case Intrastat returns are missing) because the Intra-EU data missing on the VAT return does not prevent your Intra-EU sale from being exempt. Moreover, as there is no self assessment to be processed on an Intra-EU dispatch..., there is no additional risk either.
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(published in February 2011, updated in February 2011) 1 - ESL: what is it and am I subject to it?The European Sales List must be filed on a monthly basis and lodged with the Customs in order to account for the services rendered within the EU. This declaration must be submitted by any VAT-registered who sells services to other VAT-registered operators in another Member State. 2 - Where can be found the ESL paper form in France?It is possible to file the ESL on a paper form. However, in order to do so, a written request must be sent every month. By doing so, the administration urges companies to declare the ESL electronically. 3 - What is the Frequency of the ESL submission?The submission of the ESL is done on a monthly basis and must be done at the latest the 10th working day of the following month during which the tax point intervened (via the reverse charge mechanism) in the other State member. It is the same calendar as for the Intrastat return. 4 - In France, which information must be reported on the ESL?One must report the value of the service and the VAT number of the EU customer. 5 - I charge my service in advance for three months, I am generally paid 30 days later: what do I have to declare and when ?The different elements to be taken into consideration in order to determine the moment for the ESL declaration are: - The payment date of possible down payments - When the service is provided (starting and finishing dates) - The tax point for the application of the reverse charge mechanism in the customer’s country - The payment date after the service is provided A penalty of 750 Euros can be applied for the non declaration of the ESL. 6 - What should I do if I made a mistake on the ESL of a previous month?It is possible to submit an corrected ESL related to the month of the initial ESL. This declaration must be subscribed via a paper form and sent to the Customs office where the declarations are usually lodged. Every oblivion or mistake found on the declaration implies the application of 15 Euro penalty, with a ceiling limit of 1500 euros.
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(published in December 2006, updated in February 2011) 1 - What is the legal European text regarding invoicing?It is EEC Directive 2001/115-CE. It details very precisely which are the mandatory notes that have to appear on the invoices. 2 - As liable to VAT, can I invoice in any currency?Yes. For international contracts, amounts appearing on the invoices can be in any currency. However, the tax amount shall be in the currency where the delivery of goods or the supply of service takes place. If the exchange rate is not mentioned on the invoice, you must use the last rate referring to the Market Exchange one, in use between Central Banks and published at the tax point date. 3 - Can I edit sales invoices in English when my operations are liable to French VAT and my customer is French?If your company is not registered in France, your invoices are considered as reporting to international trade. Thus, there is no obligation to edit them in French. However, the Tax Authorities can request a certified translation, just like your customer can ask you one before processing to the payment. In return, as a company registered on French soil, your invoice has to be edited at least in French, without preventing you from using other languages. 4 - Do I have the obligation to edit all my invoices with my European VAT number on them?Yes. The VAT individual identification number of the invoice issuer (the supplier) is mandatory on the invoices. Invoices with a total net amount inferior or equal to 150 euros may (there are exceptions, for instance in case of intra-EU operations) not show this VAT individual identification number of the supplier. The same applies to the exemption written indication that could apply to the operation (e. g. 3 CA-136 n° 166 à 168). 5 - Every day, I deliver goods to one of my customers. Am I obliged to issue one invoice for each delivery?No. You can issue invoices every two weeks (maximum legal frequency). However, do not forget to detail every delivery on your invoices, so they fulfill the 2001/115-CE directive requirements (cf. question n° 1). 6 - Shall I stipulate the VAT number of my customer when selling inside the European community (intrastat out)?Whilst this is not mandatory for domestic sales, it is for intra EU sales. Do not forget to indicate the mandatory note justifying the VAT exemption: "TVA exemption on intra-EU delivery - Article 138 of the Directive 2006/112/CE" for goods and “Articles 44 & 196 of directive 2006/112/CE – TVA due by the customer” for services. 7 - Does my European supplier have the obligation to mention on his invoices the information needed to establish my Intrastat In return?
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(published in February 2007, updated in February 2011) 1 - Which entities are concerned by the VAT regulations in France since Sept, 1st 2006?The VAT regulations concern suppliers established outside France and all their VAT registered customers, whether they are established in France or not. 2 - Obligations of foreign companies having changed since September, 1st 2006. What changes occurred precisely?Since September, 1st 2006, according to article 283-1 of the FTC, when a supply of goods or services is carried out by a French VAT liable entity non-established in France, VAT must be self-assessed by the buyer when he is VAT identified in France. 3 - My company is established in the European Union. Am I concerned by these regulations?The regulations affect any suppliers that are not established in France, whether they are from EU or non EU countries. 4 - Does French VAT registration remain mandatory for a foreign company only carrying out intra-EU operations (supplies from France or deliveries to France)?Yes it does because the company still has the obligation to declare its intra-EU operations. Besides, the French VAT number remains necessary to submit the related Intrastat reports. 5 - My company is not established in France, is registered for French VAT and does not charge VAT to its French client anymore, am I still supposed to declare my sales?Yes, as long as your company is registered for VAT in France, the French Tax Authorities must have the possibility at any time to compare the amounts you declared with the self-assessment made by your client on his own VAT return. 6 - My company established in France purchases goods in France to resale them to French VAT liable entities. Since Sept, 1st 2006, my clients self-assess the French VAT. How do have to I proceed then to claim the Input VAT I paid on these purchases made in France?Today, although you carry out sales in France, as a supplier which is neither established nor VAT registered in France, you can proceed to the Input VAT deduction under the 8th and 13th European Directives. Therefore a VAT claim will have to be submitted to the French Tax Authorities. 7 - My client does not want me to charge him domestic sales without VAT. What solution do I have?The unique solution is the designation of a Fiscal Respondent who undertakes to declare and pay the French VAT in the name of your client on your own VAT return. This Respondent must be an established and VAT registered company in France. 8 - I am a "non-established in France" supplier. My two main clients want me to keep on charging them VAT. Each one of them has proposed to me a different Fiscal Respondent. Is this possible?No. For each supplier the Respondent is unique for all the clients wishing to implement this solution. When the supplier is not established in the E.U., the Respondent is necessarily its Fiscal Representative nominated in application of art. 289 A of the FTC. 9 - My company established outside France has chosen to stop charging VAT to its French VAT registered clients since September, 1st 2006. Is there any particular lay out my invoices have to respect?For any sale invoice entering in the scope of application of this regulation, it must be clearly mentioned that VAT is now due by the client as stated in art. 283-1 of the French Tax Code. 10 - My company, established outside France, carries out distant sales to private individuals. As regard of the regulations, am I still supposed to charge VAT to my clients?Yes. Distant sales are not in the scope of application of this measure because the invoiced customers do not have any French VAT number.
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(published in June 2008 ) 1 - What are the rates of VAT in Germany?The VAT rates in Germany are 7% as reduced rate and 19% as regular rate. VAT in Germany is called “MwSt” or “USt” 2 - What is the necessary timeframe to obtain the VAT number in Germany (once all documents are provided)?Not all companies get a VAT-Id-number. This depends on the special case of the company, like for example if the company does intra-community-deliveries. But, every company gets a tax number for general tax matters in Germany (2 weeks timeframe). For VAT-Id-numbers, it generally takes three days after the tax number for general tax matters is obtained. 3 - Is it possible to be temporarily registered?No, you can only be registered and de-registered. 4 - Do I need to raise a VAT invoice?VAT invoices have to be issued for supplies of services or goods for which the supplier is liable to tax in Germany. 5 - If I need to raise a VAT invoice, what details must I include?According to § 14 - 4 of the German VAT law, invoices with VAT have to contain the following details:
6 - What is the frequency of VAT returns submission in Germany for foreign Companies?The level of compliance obligation depends on the VAT liability of the previous year. If the previous calendar year VAT liability exceeds a 6136 € threshold (as of 01.01.2008), monthly VAT returns are due. Otherwise quarterly VAT returns are sufficient. Annual VAT return is also allowed for smaller businesses. 7 - How is deductible VAT refunded in Germany?If the Output VAT is lower than the input VAT during the corresponding time period, the amount is paid by the tax office to the client’s bank account. 8 - Is a foreign Company intending to set up a stock of goods in Germany supposed to register to German VAT?If stocks exist in Germany, the company must register for VAT purposes. There are no simplification rules applicable. 9 - Since export sales are VAT free in Germany, is a foreign company making such sales supposed to register for VAT purposes in Germany?The company has to register for VAT purposes and also has the obligation to give the evidence showing the supplies are tax-exempted. 10 - I am VAT registered in Germany and following a visit by the German tax administration I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?You can launch a process within the deadline of one month after the decision was announced, provided you can give, on the basis of a book-keeping documentation, a proof about the lower sales having occurred. However it is often advisable to seek expert help. 11 - Does a foreign company that has subcontractors in Germany to supply services invoiced to a German company need to register to German VAT?A foreign company with German subcontractors must register for VAT purposes only if the subcontractors and itself are both performing construction work. If the foreign company engages foreign subcontractors, the former must register in Germany in any case.
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(published in February 2008, updated in April 2009) 1 - What are the rates of VAT in Italy?Italy has 3 rates of VAT according to what is supplied. The standard rate, in force since 01/10/1997, is 20%. There are also 2 reduced rates: the first (4%) applies to essential commodities, some publications and some specific services in the building and engineering industries; the second (10%) applies to food products, some services related to building and engineering or to services of public utility. 2 - What is the necessary timeframe to obtain the VAT number in Italy (once all documents are provided)?Upon reception of the original registration form, the Italian tax administration will provide you with the VAT number within a week. 3 - Is it possible to be temporarily registered?No, this alternative has not been covered by the Italian legislation. 4 - Do I need to raise a VAT invoice?You can raise an invoice with Italian VAT only if you are VAT registered in Italy. However, some exemptions are in effect in such areas as retailing, electronic invoicing and “self-billing.” 5 - If I need to raise a VAT invoice, what details must I include?The essential information according to article 21 of D.P.R. 633/72 are : - The date of issuance of the invoice - A unique and sequential identifying number - The customer and provider’s names as well as their respective addresses and VAT numbers - A description of the goods or services supplied - The VAT exclusive amount, - The VAT rate applied, the total amount of VAT charged and the total VAT-inclusive payable amount - The related article of the legislation for any VAT-exemption - The number and date of the DDT (transport document) if the invoicing process is postponed. For VAT-exempted purchases that will lead to exports, the intention declaration data need to be mentioned as well. - It is also mandatory to add the taker’s VAT number for any Intra-EU delivery. 6 - What is the frequency of VAT returns submission in Italy?In Italy, it is crucial to distinguish between the recapitulative data and the VAT payment. Both of them must occur on a monthly basis, even though there is a possibility to submit quarterly returns if the requirements are met. The VAT return must be submitted yearly. Eventually, any data and information useful as far as VAT is concerned plus a customer and provider list yearly obligation has been cancelled. 7 - How is deductible VAT refunded in Italy?Subject to certain conditions you can reclaim any VAT you are charged on goods or services that you use to set up your business. VAT-registered entities not established in Italy may recover any input VAT by netting it off against the output VAT liability of the taxable period. Once the yearly VAT calculation made, a VAT credit can either be claimed or reported on your next year’s VAT return. Italy follows the EC 8th and 13th Directives, which means that foreign suppliers not registered in Italy need to submit VAT refund applications on a special form and supply the required evidence. The actual reimbursement may range from six to ten months depending on the moment the claim has been introduced. 8 - Is a Company intending to set up a stock of goods in Italy supposed to register to Italian VAT?Any foreign company non-established in Italy which stocks goods coming from another member state of the EU to have them sold afterwards must be VAT-registered. When the goods are transferred or sent, the foreign entity must apply a self-billing procedure and mention on the document the Intra-Community VAT number it has directly obtained as a VAT-registered company. 9 - Since export sales are VAT free in Italy, is a foreign company making such sales supposed to register for VAT purposes in Italy?In accordance with the principle of taxation of goods depending on the place they are used, export sales are considered as VAT-exempted or zero-rated operations. Yet, those deliveries must be reported within the turnover, invoiced, recorded and declared. 10 - I am VAT registered in Italy and following a visit by the Italian tax administration I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?Although a non-established foreign trader can take up this matter directly with the Italian tax administration, it is often advisable to seek expert help. The first step is to request a reconsideration of the decision. This will suspend the assessment and give both sides a chance to re-examine the background to the decision. If the reconsideration is not successful, the trader can lodge an appeal with the local tax authorities’ tribunal.
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(published in September 2009 ) 1 - What are the rates of VAT in Portugal?In Portugal the VAT rates are as follows: - A reduced rate of 5%; - An intermediate rate of 12%; and - A standard rate of 20%. The reduced rate is applied to, in particular, essential foods, pharmaceuticals, newspapers & books, transportation and accommodation. The intermediate rate is applied to preserved goods and services of restaurants (meals and beverages). The standard rate is applied to all supplies of goods and services not covered by the reduced or intermediate rates. The above mentioned rates are 4%, 8% and 14%, respectively, in respect of those transactions which are deemed to take place in the Autonomous Regions of Azores and Madeira, as well as imports carried out therein. 2 - What is the necessary timeframe to obtain the VAT number in Portugal?Once all necessary documents are provided, the Company House will issue immediately a VAT number. Additionally, a business start-up form must be filed with the Portuguese Tax Authorities in order to allow the company to be VAT registered in Portugal. 3 - Is it possible to be temporarily registered?The Portuguese VAT system does not consider this option. However, taxpayers can close-down the activity for VAT purposes at anytime through the website of the Portuguese Tax Authorities. 4 - Do I need to raise a VAT invoice?Under the Portuguese VAT law, the VAT is due on the value of the supply on the moment the invoices are issued. As a general rule, the taxable entities are obliged to issue an invoice for each sale of goods or services carried out. The invoice must be issued no later than the fifth working day following the goods delivery or the services rendered. 5 - If I need to raise a VAT invoice, what details must I include?For the purposes of tax control, any invoice or other equivalent document must be processed by computer or printed and numbered at an authorized typography. In addition to numbering and dating, invoices or equivalent documents must include the following information:
6 - What is the frequency of VAT returns submission in Portugal for foreign Companies?Both foreign as well as a Portuguese companies with a turnover higher than EUR 650.000 are required to submit their VAT returns and corresponding means of payment no later than the 10th day of the second month following that to which the transactions relates to. Any taxpayer whose turnover is lower than the above mentioned amount shall submit its VAT returns and corresponding means of payment until the 15th day of the second month following each period of three months in the calendar year. European sales listing as well as the report of sales made in Madeira and Azores, when applicable, is due whit the monthly or quarterly VAT return. All VAT registered entities are required to submit an annual VAT return and annual customer and suppliers listings, whenever transactions for the year with each client / supplier exceed EUR 25.000. 7 - How is deductible VAT refunded in Portugal?When within a VAT period, input VAT exceeds output VAT for more than ?10.650, the taxpayer may request a refund by indicating this on the periodic VAT return and subsequently submit a refund package which should include items such as VAT ledgers and summaries of VAT regularizations. For VAT credits lower than the referred amount but higher than ?250 a refund may be requested when 12 months have passed over the period where the credit situation started. In case a refund is requested, the VAT Authorities tend to audit the records of the taxpayer. A bank guarantee in favor of the Tax Authorities should be provided for VAT refunds higher than ?1.000, to be kept for one year. The VAT refund shall be made by the VAT Services until the end of the 3rd month following that in which the claim is lodged, on the periodic VAT return, after the expiration of which this timeframe, the taxpayer is entitled to receive indemnity interests. 8 - Is a foreign Company intending to set up a stock of goods in Portugal supposed to register to Portuguese VAT?When a foreign company, EU resident, dispatches goods from an EU country to stock in Portugal, will be making an operation assimilated to an intra-Community acquisition of goods in Portugal, subject to Portuguese VAT. As such, the EU company should register itself with the Portuguese Tax Authorities, and obtain a Portuguese VAT number, in order to assess the VAT due in Portugal regarding said transaction. For an EU company the assessed VAT should, in principle, also qualify for deduction as input VAT which usually implies that the VAT may be deducted on the same periodic VAT return on which the assessment is shown. It is not necessary to proceed to the payment of said VAT. We are before an accounting operation without any financial impact. Entities resident in the EU and registering for VAT purpose in another EU member state are not required to appoint a fiscal representative in Portugal. Non-EU resident entities without a permanent establishment within the Portuguese territory must appoint a fiscal representative who is jointly liable together with the registered entity in order to comply with the obligations resulting from the carrying out in Portugal of transactions chargeable to VAT. VAT on supplies from outside the EU becomes payable upon import into Portugal along with any customs duties payable. 9 - Since export sales are VAT free in Portugal, is a foreign company making such sales supposed to register for VAT purposes in Portugal?As a general rule, the transfers of goods executed in Portugal by a foreign company are exempt from VAT provided that, the goods are dispatched or transported from Portugal to a destination outside the EU territory. Furthermore, the company must have evidence that the destination of the goods is to a non- EU State. Otherwise, Portuguese VAT will be due. A foreign company making such sales from Portugal must issue an invoice regarding each transfer of goods made to non-EU resident entities in the same terms and conditions as a taxable operation must to filling with the same declaratives VAT obligations as a local company, thus a registration for VAT purposes is need. 10 - I am VAT registered in Portugal and following a visit by the Portuguese Tax Administration I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?According to the Portuguese legislation, all taxpayers are allowed to dispute any unfavorable additional tax assessment. This is done through the presentation of a "tax claim" to the Tax Authorities. Should the dispute not be resolved through this route, the taxpayer can make use of a "court claim" before the Court of justice. 11 - Does a foreign company that has subcontractors in Portugal to supply services invoiced to a Portuguese company need to register to Portuguese VAT?In what concerns the supply of services, the place of supply is generally deemed where the supplier has established his business or has a fixed establishment from which the services are rendered. This means that the services invoiced by a foreign company to a Portuguese company will not be subject to Portuguese VAT. Thus, the foreign company does not need to register for VAT purposes in Portugal, independently as to whether the services were subcontracted, or not, to a Portuguese company. There are, however, some exceptions to this rule, in compliance with the 6th Directive requirements. Thus:
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(published in April 2009 ) 1 - What are the rates of VAT in Spain?The standard rate is 16%. It applies to all supplies not qualifying for one of the reduced rates. There are two reduced rates: 7% and 4% "Reduced" rate of 7% applies to basic necessities (food and agricultural products not covered under the "super reduced" rate of 4%, dwellings, and certain qualifying services). "Super reduced" rate of 4% applies to basic necessities other than those classified under the "reduced" rate of 7% (bread, milk, books, medicine, etc.). 2 - What is the necessary timeframe to obtain the VAT number in Spain (once all documents are provided)?The Spanish VAT number is obtained immediately once the tax registration form is filed together with the legal documentation required (the Tax Identification Card is provided approx. in two-week period after filing the registration form). 3 - Is it possible to be temporarily registered?No, this alternative has not been covered by Spanish Legislation. Every taxable person shall state when his activity commences, changes or ceases. 4 - Do I need to raise a VAT invoice?Every taxable person shall ensure that an invoice is issued in respect of goods or services which he has supplied or rendered to another taxable person or to a nontaxable legal person. 5 - If I need to raise a VAT invoice, what details must I include?Under Spanish Invoicing regulations, the following data have to be included in the invoice: a) Invoice number b) Invoice date c) Completed name of supplier and addressee of the invoice d) Spanish/ EU member VAT number e) Address of the supplier and addressee of the invoice. f) Description of the operations, including all necessary data for the taxable base calculation. g) VAT rate applicable h) VAT amount charged which must be included separately i) Registration details of the Issuer – Company within The Commercial Registry In such a case of Intra-Community deliveries, exportations and other cases where no VAT is charged, it must be mentioned the article of the Spanish VAT Act or EU Directive which proves the exemption. 6 - What is the frequency of VAT returns submission in Spain for foreign Companies?VAT returns must be filed on a regular basis (monthly or quarterly depending on the turnover of the company). Additionally, the VAT taxpayer must file the Annual VAT Summary. Quarterly VAT returns must be submitted provided the Spanish turnover of the entity in the previous year did not exceed Euro 6,010,121.04. On the contrary the entity must file VAT forms on a monthly basis. Returns are due on the 20th of the month following the tax period to which they relate. However, the following exceptions are provided for: - Monthly returns for July can be filed between 1 August and 20 September. - Returns for the last tax period of the year can be filed between 1 January and 30 January. 7 - How is deductible VAT refunded in Spain?If the balance of a VAT return, monthly or quarterly, results in an amount in favour of the taxable person, the VAT credit is automatically carried forward to the next period covered by a VAT return. VAT credits can only be refunded at the end of the year by submission of the last VAT return. Under certain conditions, a taxable person can obtain a monthly refund of VAT credits (special regime for Exporters and other economic operators). The Spanish Tax Administration has 6-month period after the filing of the VAT form re last period to resolve the reimbursement of the VAT refund. If the delay of the VAT reimbursement is due to a fault of Tax Administration, the VAT taxpayer would have the right to receive late payment interests. Also, it exist the Special VAT Regime established to non resident entities which are VAT taxpayers in its country of residence who can claim the VAT back for theirs acquisitions of goods and/or services in Spain in accordance with 8th and 13th EU Directives. 8 - Is a foreign Company intending to set up a stock of goods in Spain supposed to register to Spanish VAT?If a non-established taxable person delivers goods to a warehouse in Spain without transferring ownership of the goods until a later time at which the customer effectively disposes of them, the requirements for this taxable person in Spain will be as follows: - The arrivals of the goods in Spain will be deemed to be an intra-community acquisition in Spain. The non-established entities, as the owner of the goods, needs to register in Spain. - However, if the warehouse in which the goods are temporarily stored does not constitute a permanent establishment, the VAT due on the subsequent local supply will be declared for the customer under the reverse charge rule. As a result of this treatment, the intra-community acquisition carried out by the non-established taxable person will be exempt from VAT in Spain. This exemption is aplicable to those intra-community acquisitions of goods in respect of which the acquirer is entitled to obtain a refund of the VAT due on the transaction in accordance with 8th and 13th EU Directives. Therefore, the non-established supplier will have to register in Spain and file quarterly EC Sales & Purchases Lists and monthly Intrastat returns, if applicable, in order to declare only the intra-community movement of the goods. 9 - Since export sales are VAT free in Spain, is a foreign company making such sales supposed to register for VAT purposes in Spain?Yes. Only non-established taxable persons do not have to register if they exclusively perform the exempt transactions under sections 23 and 24 of the Spanish VAT Law (exemptions related to free zones, free warehouses, and customs and tax arrangements). 10 - I am VAT registered in Spain and following a visit by the Spanish tax administration I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?In a first step, it is possible to appeal before Spanish Tax Administration (STA). Later on, if the taxpayer is dissastified with the decision of the STA may have the appeal re-heard by the Administrative Court (Tribunales Económico Administrativos). Both the taxpayer and STA may appeal to the High Court (Tribunales Contencioso-Administrativos). 11 - Does a foreign company that has subcontractors in Spain to supply services invoiced to a Spanish company need to register to Spanish VAT?No, the foreign company must not be registered in Spain for VAT purposes considering that the Spanish subcontractors and Spanish clients would be Spanish VAT taxpayers. Then, the foreign company would bear VAT on purchases (subcontractors invoices) and any VAT on sales must not be charged by the foreign company (the reverse charge rule applies being the VAT taxpayer the addressee -Spanish client- who will self-assest the corresponding VAT amount). The foreign company could apply for the VAT refund re subcontractors´ invoices through the special VAT refund for non-established companies.
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(published in September 2008 ) 1 - What are the rates of VAT in the Czech Republic?The VAT rates in the Czech Republic are 9% as reduced rate and 19% as regular rate. VAT in the Czech Republic is called “DPH” 2 - What is the necessary timeframe to obtain the VAT number in the Czech Republic (once all documents are provided)?Usually non-established companies get a VAT-registration-number called DIC at the same day when all necessary documents are properly submitted to the financial Authority Praha 1. All documents must be submitted in Czech language or officially translated by sworn translator. Every non-established company gets a DIC number for VAT registration matters only in the Czech Republic starting with CZ68 which has 9 digits (e.g. CZ681846846). 3 - Is it possible to be temporarily registered?No, you can only be registered and then de-register after 1 full year of registration. 4 - Do I need to raise a VAT invoice?VAT invoices have to be issued for supplies of services or goods for which the supplier is liable to tax in The Czech Republic. For VAT purposes, amounts of tax base (net of tax) and amount of VAT “DPH” must always be expressed Czech Crowns (CZK). This is based on Article 26, paragraph 1 of the Czech Value Added Tax act Nr. 235/2004 Coll. as amended. If non –established companies need to convert an amount from a foreign currency into Czech Crowns they must use the Czech National Bank exchange rate at the time of the liability to tax (Tax point). The rates published in www.cnb.cz must be used. 5 - If I need to raise a VAT invoice, what details must I include?A tax document must be issued within 15 days after the tax point. It is very important to establish the day the tax point, as it largely influences the Czech VAT liability, as the exchange rate changes from day to day. As concerns the format of the tax document please find bi-lingual description of the content according to Article 28: Name of the document: Tax invoice - danový doklad Tax invoice must include: a) obchodní firmu nebo jméno a príjmení, poprípade název, dodatek ke jménu a príjmení nebo názvu, sídlo nebo místo podnikání plátce, který uskutecnuje plnení, Full legal name of non–established company and full legal address b) danové identifikacní císlo plátce, který uskutecnuje plnení, Czech VAT registration number “DIC” of non–established company c) obchodní firmu nebo jméno a príjmení, poprípade název, dodatek ke jménu a príjmení nebo názvu, sídlo nebo místo podnikání osoby, pro kterou se uskutecnuje plnení, Full legal name of the customer and full legal address (for natural persons full name and address) d) danové identifikacní císlo, pokud je osoba, pro kterou se uskutecnuje plnení plátcem, VAT registration number “DIC”of the customer, if VAT registered e) evidencní císlo danového dokladu, serial number of the tax invoice f) rozsah a predmet plnení, Scope and object of the taxable supply g) datum vystavení danového dokladu, date of issue of the tax document h) datum uskutecnení plnení nebo datum prijetí platby, a to ten den, který nastane dríve, pokud se liší od data vystavení danového dokladu date of performance of the taxable supply or date of payment, whichever is earlier (Tax point) if different from the day of issue. i) jednotkovou cenu bez dane, a dále slevu, pokud není obsažena v jednotkové cene, price of units, and applicable discounts if not included in the price j) základ dane v korunách (muže být také udán navíc i v cizí mene), tax base in Czech Crowns (maybe also stipulated in a foreign currency in addition) k) základní nebo sníženou sazbu dane nebo sdelení, že se jedná o plnení osvobozené od dane, a odkaz na príslušné ustanovení tohoto zákona, basic or reduced VAT rate or announcement that the supply is VAT exempt and reference to the applicable Article on VAT exemption l) výši dane uvedenou v korunách a halérích, poprípade zaokrouhlenou na desítky haléru nebo padesátihalére. tax amount in Czech crowns and hellers, or rounded up to tens or fifties of hellers From the above you can see that the invoice amount can be payable in any currency. 6 - What is the frequency of VAT returns submission in the Czech Republic for non-established Companies?Quarterly VAT returns are obligatory. In case the non-established company performs supplies of goods to other EU member states, then quarterly ESL (sales list) is also obligatory. 7 - How is deductible VAT refunded in the Czech Republic?If the output VAT is lower than the input VAT during the corresponding time period, the amount is paid by the tax office to the client’s bank account within 30 days after the submission of the VAT return. 8 - Is a foreign Company intending to set up a stock of goods in The Czech Republic supposed to register to Czech VAT?If stocks exist in The Czech Republic, the company must register for VAT purposes. There are also simplification rules applicable, on case the company supplies goods just one customer. This is called “call-off stock” rule. Then the non-established company is not obliged to register for Czech VAT. 9 - Since export sales are VAT free in the Czech Republic, is a foreign company making such sales supposed to register for VAT purposes in The Czech Republic?The company can not register for VAT purposes and has no obligation to give the evidence or any reports to the Financial Authority. However, significant changes will apply as of 1 January 2009. 10 - Does a non-established company that has subcontractors in The Czech Republic which supplies services invoiced to a Czech company need to register to Czech VAT?A non-established company with Czech subcontractors can register for VAT purposes only if the subcontractors and itself are both performing construction work to VAT non-registered customer. In other cases reverse charge may be applicable. However, significant changes will apply as of 1 January 2009. 11 - I am VAT registered in The Czech Republic and following a visit by the Czech Financial authority I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?You can file an appeal within the deadline of 30 days after the decision was announced, provided you can give, on the basis of VAT documentation, a proof about the lower sales or higher purchases having occurred within the applicable period with appropriate VAT rates. However it is often advisable to seek local VAT specialist help. http://jan.kaucky.eu
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(published in December 2007, updated in November 2008) 1 - What are the rates of VAT in the Netherlands?The Netherlands has 2 "normal" rates of VAT according to what is supplied. The standard rate is 19% and there is a reduced rate of 6% which applies to items like food, non-alcoholic beverages, agricultural products, medical supplies, books, journals, hotel and restaurant services, etc... 2 - What is the necessary timeframe to obtain the VAT number in the Netherlands (once all documents are submitted)?As from mid 2008 the Netherlands tax administration (at Heerlen) aims to process applications within one week of receipt. At present however, this goal of one week is met, however, a delay of one to three weeks from the date of submission of an application should be taken into account. Though registration through a fiscal representative is not an obligation, certain cash flow saving schemes are only available though such a person, e.g. when also import VAT is involved. 3 - Is it possible to be temporarily registered?In general, the answer is YES. Nevertheless, when opting for voluntary registration (in case of distance sales or acquisitions under the relevant threshold) 2 calendar years is the minimum period required. 4 - Do I need to raise a VAT invoice?If you are not established in the Netherlands (it is irrelevant whether you are registered for VAT or not), you only can charge Netherlands VAT to private individuals or to other non-resident foreign customers. Please note that the Netherlands legislation provides that there is no obligation to separately invoice Netherlands VAT separately on the invoice in case of supplies of goods and services to private individuals. If you make taxable supplies to taxable persons - usually VAT-registered - or to non-taxable legal persons like government bodies, holdings, foundations, etc., your customer is exclusively liable to account for the VAT ("reverse charge"). In such case, you cannot invoice the VAT, although your invoice should still include the other data that are required (see below). 5 - If I need to raise a VAT invoice, what details must I include?Normally you must issue a VAT invoice within 15 days after the month in which you make the supply. You must show:
And for each description of goods and services you must show the following: 6 - What is the frequency of submission of VAT returns in the Netherlands?Though VAT returns are in principle submitted quarterly, taxable persons of whom the VAT return shows a liability of 3,000 euros or more per quarter are requested to submit VAT returns on a monthly basis. On the other hand, the taxable person may himself request to submit VAT returns on a monthly basis as well, which is usually done if the input tax will regularly be more than the output tax (i.e. when the taxable person will be in a regular repayment situation). This also applies to foreign taxpayers. 7 - How is deductible VAT refunded in the Netherlands?Subject to certain conditions you can reclaim any VAT you are charged on goods or services that you use to set up your business. The Netherlands follows the EC 8th and 13th Directives, which means that foreign suppliers need to submit an application on a special form and supply the required evidence. The actual reimbursement usually follows after six months. However, if the foreign supplier needs to register for VAT in order to account for a VAT liability, any input tax is refunded through the traditional VAT return submission and is netted off against the output VAT liability in any particular period. If a VAT return leads to an actual reimbursement, it usually follows within one month, which is the reason why many foreign suppliers try to obtain a VAT registration instead of applying the procedure of the 8th or 13th Directive. 8 - Is a Company intending to set up a stock of goods in the Netherlands supposed to register to Netherlands VAT?Normally, the stock will not qualify as a permanent establishment for VAT and as such setting up a stock should not lead to a registration. However, if the goods transferred to the Netherlands lead to an intracommunity acquisition or if the sale of the goods from the stock require the foreign company to account for the sale (intracommunity sales, domestic sales to other foreign companies), a registration for VAT shall be necessary. Usually, if such a necessity is foreseen, the registration is already started up. 9 - Since export sales are VAT free in the Netherlands, is a foreign company making such sales supposed to register for VAT purposes in the Netherlands?If all your supplies are zero-rated, the Netherlands tax administration will traditionally accept that you do not register for VAT. However, this will mean that the input tax you pay when you buy goods or services for your business can only be reclaimed trough the procedure of the 8th or 13th Directive. In view of the cash flow advantage due to the quicker processing, submitting VAT returns is usually preferred. 10 - I am VAT registered in the Netherlands and following a visit by the Netherlands tax administration I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?Although a foreign VAT trader can take up this matter directly with the Netherlands tax administration, it is often advisable to seek expert help. The first step is to request a reconsideration of the decision. This will suspend the assessment and give both sides a chance to re-examine the background to the decision. If local reconsideration is not successful, the trader can lodge an appeal with the independent tax courts where experts in the area will determine the matter.
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(published in June 2007, updated in June 2008) 1 - What are the rates of VAT in the UK?The UK has 3 rates of VAT according to what is supplied. The standard rate is 17.5%; there is a reduced rate of 5% which applies to supplies generally dedicated to the public interest, domestic heat and power; there is a further rate of 0% which applies to other supplies of goods and services. In certain cases, supplies may be liable to all three rates of VAT. It is up to the supplier to charge the correct VAT rate and it will be liable where VAT is undercharged. 2 - What is the necessary timeframe to obtain the VAT number in the UK (once all documents are provided)?The British tax administration (HM Revenue & Customs (HMRC)) aims to process applications within 14 days of receipt. At present however, this goal is unrealistic. Lack of staff and more vigorous screening of applications to prevent VAT fraud are resulting in a delay of around 12-14 weeks from the date of submission of an application. This can be longer if HMRC chose to raise queries. 3 - Is it possible to be temporarily registered?In certain circumstances the answer is YES. Subject to turnover limits, there is no minimum duration for a VAT registration. Nevertheless, when opting for voluntary registration (in case of distance sales or acquisitions under the relevant threshold) 2 calendar years is the minimum period required. 4 - What details must I include on a VAT invoice?Normally you must issue a VAT invoice within 30 days of the date you make the supply. You must show: - a unique and sequential identifying number - your name, address and VAT registration number - the date of issue of the invoice - your customer's name and address - the unit price - time of supply (tax point) - if different from the invoice issuing date - the gross total amount payable, excluding VAT - the rate of any cash discount offered - the total amount of VAT charged, shown in GBP (£) - a description of the goods or services supplied And for each description of goods and services you must show the following:
5 - What is the frequency of VAT returns submission in the UK?VAT returns are normally submitted quarterly. If you are registered for VAT and you expect your input tax will regularly be more than your output tax, (i.e. that you will be in a regular repayment situation) you may ask for your VAT return to be issued on a monthly basis. 6 - How is deductible VAT refunded in the UK?Subject to certain conditions you can reclaim any VAT you are charged on goods or services that you use to set up your business. Although the UK follows the EC 8th and 13th Directives, there is no formal VAT claim application to submit. Input tax is refunded through the traditional VAT return submission and is netted off against the output VAT liability in any particular period. 7 - Is a Company intending to set up a stock of goods in Jersey for sales in the UK supposed to register to UK VAT?No, Jersey is not part of the UK for VAT purposes. The company is likely to be required to register for VAT in Jersey. The sale from Jersey to the UK or anywhere else in the EU will be considered as export. This is a contentious area and specialist advice should be taken before attempting to take advantage of this structure. 8 - Will it be the same in the Isle of Man?No because, as far as VAT is concerned, the Isle of Man belongs to the UK. Therefore the sale being domestic, UK VAT registration should be required. 9 - Since the VAT rate on books is 0% in the UK, is a foreign company supposed to register for VAT purposes in the UK when making distance sales of books?If all or most of your supplies are zero-rated, you may not need to be registered for VAT. This is called exemption from registration. However, we draw your attention to the fact that if you chose to remain exempt you will not be able to reclaim the input tax you pay when you buy goods or services for your business. 10 - I am VAT registered in the UK and following a visit by HMRC I have been assessed for underpaid VAT and interest. I do not agree with the assessment. How do I dispute it?Although a VAT trader can take up this matter directly with HMRC, it is often advisable to seek expert help. The first step is to request a reconsideration of the decision. This will suspend the assessment and give both sides a chance to re-examine the background to the decision. If local reconsideration is not successful, the trader can lodge an appeal with the independent VAT & Duties Tribunal where a tribunal chairman and sometimes experts in the area will determine the matter.
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(published in June 2006, updated in February 2011) 1 - What is a taxpayer?A taxpayer is a person moral or physical duly registered in the country where established and where commercial business is carried out independently. 2 - What does “8th directive” mean?The 8th European Directive 79/1072/CEE of 06/12/1979, modified by Directive 2008/9/CE of 12/02/2008, deals with the right and methods of VAT refund (included in the purchase of goods and services) in an EU Member State by a VAT taxpayer established in another Member State. 3 - What are the conditions under which a foreign taxpayer can recover the VAT within the EU?During the civil year concerned with the TVA claim, the foreign taxpayer:
4 – Can I provide a certified true copy invoice for the TVA refund?EU tax departments demand that scanned original invoices are sent (for a Nett amount exceeding EUR 1000, EUR 250 for the purchase of fuel). However Germany, Denmark, Hungary and Slovakia will accept a certified true copy or a duplicate (although this is tolerated and can be modified without any prior notification). 5 – I have to send TVA claims in France and Germany. I know that the deadline for companies established in the EU is 30th September, but does it mean that the 30th September is the deadline for the deposit or the date of reception by the portal of the EU state of refund?The legal date is the date of the electronic submission of the claim via the portal of the country where the company is established. 6 – One of the lorries of our Portuguese international transport company was repaired in Spain in 2009. The TVA amount was only 520 Euros. Can we claim this TVA back?The minimum recoverable TVA amount for a civil year is 50 Euros. The minimum is 400 Euros for one quarter. However, since 01/01/2010 as per articles 44 & 196 of Directive 2006/112/CE this kind of service must be charged without TVA by the service provider. On the other hand, for foreign taxpayer customers the reverse charge mechanism must be applied to such TVA. 7 – Our Belgium company provided very few coastwise transport services in France for very low amounts. Are we entitled to claim this TVA?The September 2006 change of law (instruction 3-A-9-06 dated 23.06.2006) says that when a foreign taxpayer sales services or goods to a French taxpayer, the TVA on this sale must be paid by the customer. This is the application of the reverse charge mechanism; therefore the foreign taxpayer does not have to register for TVA in France. The input TVA can be recovered via the 8th European directive. 8 – I took part in an exhibition in Italy; can I recover the TVA on my expenses for the participation and for the hotel and restaurant?Any expense related to the participation to an exhibition is accepted except the expenses for person transportation, car rental, and entertainment allowances. Only 50% of the VAT is recoverable on restaurant and hotel expenses. However, according to Directive 2006/112/CE, from 01/01/2011, VAT will no longer have to be charged to a foreign taxpayer for his participation to an exhibition (he will have to apply the reverse charge mechanism in his country). VAT will only be charged for entry fees by the organizer. 9 – I have to submit a claim via the French portal. Can I entrust a third party to do this task?In France any taxpayer can delegate this procedure to a tax agent who will be in charge of the submission of the claims. The delegation procedure is explained on the portal. 10 – What is the legal time limit for the examination of an electronic claim?The maximum time limit is 4 months as from the reception of the claim by the State who will do the refund if no additional information is requested. Should this be the case, the time limit is extended up to 2 months. In any case, the maximum cannot exceed 8 months.
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(published in February 2011, updated in February 2011) 1 - What is a taxpayer?A taxpayer is a person moral or physical duly registered in the country where established and where commercial business is carried out independently. 2 - What does “13th directive” mean?The 13th European Directive N°86/560/CEE of 17/11/1986 deals with the right and methods of VAT refund in an EU Member State by a non EU taxpayer. 3 - What are the conditions under which a foreign taxpayer can recover the VAT within the EU?During the civil year concerned with the TVA claim, the foreign taxpayer:
4 – Can I provide a certified true copy invoice for the TVA refund?Most of the EU Member States demand the original invoices However Germany, Denmark, Hungary and Slovakia are not demanding and accept a certified true copies or a duplicates (although this is tolerated and can be modified without any prior notification). 5 – In which Member States can a non-EU taxpayer get the refund of the VAT he has paid?To date, any taxpayer established out of the EU is authorized to get the refund, under certain conditions, via the 13th EU directive in Germany*, Belgium, Denmark, Spain*, Finland, France, the UK, Ireland, Italy*, Luxemburg, The Netherlands, Portugal* and Sweden. * restricted to certain countries according to the reciprocity agreement. 6 – I have to send TVA claims in France and Germany. I know that the deadline for non EU companies is 30th June of the following year according to the date when the invoices are raised (N+1), but does it mean that the 30th June is the deadline for the sending (stamp of the post as evidence) or the date of reception by the tax department in each country?There is no harmonized EU legislation in this matter. For France, the legal date is the sending date whereas Germany has recently adopted an opposite position (date of reception as the deadline). It is your interest to minimize the risk and thus to make everything possible to have your claims arrive in each country by the 30th June of the following year at the latest. 7 – One of the lorries of our Croatian international transport company was repaired in France. The TVA amount was only 520 Euros. Can we claim this TVA back?Under the 13th directive, each country defines its own thresholds. In France, the minimum recoverable VAT amount is 25.34 € when you submit an annual claim and 201.34 € when it is a quarterly claim. So you can introduce the claim for €520. 8 – Our Swiss company provided very few coastwise transport services in France for very low amounts. Are we entitled to claim this TVA?The September 2006 change of law (instruction 3-A-9-06 dated 23.06.2006) says that when a foreign taxpayer sales services or goods to a French taxpayer, the TVA on this sale must be paid by the customer. This is the application of the reverse charge mechanism, therefore the foreign taxpayer does not have to register for TVA in France. The input TVA can be recovered via the 13th European directive. 9 – I took part in an exhibition in Italy; can I recover the TVA on my expenses for the participation and for the hotel and restaurant?Any expense related to the participation to an exhibition is accepted except the expenses for person transportation, car rental, and entertainment allowances. Only 50% of the VAT is recoverable on restaurant and hotel expenses. However, according to Directive 2006/112/CE, from 01/01/2011, VAT will no longer have to be charged to a foreign taxpayer for his participation to an exhibition (he will have to apply the reverse charge mechanism in his country). VAT will only be charged for entry fees by the organizer. 10 – A Japanese company has taken part in exhibitions in Germany and Italy. Can they recover the VAT in both countries?They will be able to do so in Germany because Japan is one of the countries to have signed a reciprocity agreement with Germany. On the contrary, no reciprocity agreement has been signed between Japan and Italy. Therefore, it is impossible to recover the VAT.
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