There are some points of application process and for registering of VAT (Value Added Tax) and receiving the registration number. These steps are invent for online businesses. While the other physical businesses have to follow different process.

  1. Choose the EU country where you are physically located or where you have other physical presence, such as real estate or employees. In certain cases, if you sell physical products, you might also need to register in countries where you store inventory.
  2. Register through the national VAT OSS, or One-Stop Shop. This is an online portal that streamlines both the application process as well as reporting and filing later on.
  3. Add your company information and bank account details.
  4. Then enter your personal contact information.
  5. From there, you’ll be asked about your company’s VAT history, such as other previous or current VAT registrations. This might also include the date when you made your first taxable sale in the country.
  6. After this, the portal will send you to a summary page where you can review all the information you entered. Make sure it’s all correct!
  7. Submit. And that’s it!

The process takes anywhere from a few weeks to a couple of months. In our experience as an EU business helping others manage their VAT, the time it takes to receive a VAT number can vary widely depending on the specific country in which you’ve applied.

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You need a VAT number if your sales surpass the tax registration threshold in a specific country. When you pass a threshold, you are legally obligated to register for taxes and obtain a registration number. Threshold amounts vary depending on what types of products you’re selling. Because of registration VAT thresholds, monitoring your sales in each country is a necessary part of tax compliance. This can be a painfully manual and time-consuming element of running an online business.

ALSO READ: What Is VAT Number?



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