The appointment of a tax agent ensures for the proper settlement of VAT tax to companies having their official seat in one of the states of European Union that perform activities subject to VAT tax in other European states.
Below are examples of taxable activities:
- Intra-Community deliveries and purchases to and from other member states,
- Import and export to and from the territory of European Union,
- Construction services and services related to real estate,
- Storage of goods and consignment stocks,
- Distance sales in the case of exceeding thresholds (please click here to view Distance Selling Thresholds),
- Sales to consumers and other entities who are not VAT payers,
- VAT settlement based on the ‘reverse charge’ principle,
- Certain purchasing/reselling operations.
If you perform one of the business operations listed above, you are probably obliged to register for VAT purposes in a given Member State. By obtaining a local VAT number you will be able to ensure the correct settlement of output and input tax.
To this end you may appoint a tax agent like amavat Europe who will assist you with any administrative formalities, ensuring full compliance with local legislation and protection against loss of the possibility of VAT recovery or being charged with penalties in case of a violation of tax regulations.