WHEN DO COMPANIES HAVE TO REGISTER FOR EU VAT NUMBER?
Typical instances where a foreign trader is required to register for a local VAT number include:
If a foreign company is buying and selling goods in another country
If a company is importing goods into an EU country, which can include moving goods across national borders within the EU
Holding goods in warehouses or on consignment stock in other EU countries for customers
Selling goods to consumers over the internet or though catalogues (distance selling)
Supply and install of equipment in a limited number of situations
A very limited number of situations where services are being provided (following the 2010 VAT Package reforms)
The requirements above apply equally to companies from within EU, and non-EU
HOW DO COMPANIES GET A EU VAT NUMBER?
Typically, a company will be required to provide the following supporting documentation:
Proof of VAT or tax registration in its country of domiciliation
An original copy of the certificate of incorporation of the company
A copy of the company’s Articles of Association
An extract from the national company registrar as proof of existence,
Increasingly, proof of the planned trade (e.g. contracts or invoices)
If the company is appointing a local tax agent or Fiscal Representative, then a Letter of Authority or Power of Attorney
WHO WILL DO THIS FOR ME?
We will do this for you.
Time frame 2-6 weeks to setup VAT number & the structure.
WHAT IS REQUIRED FOR FISCAL REPRESENTATION?
Fiscal Representative is required by the local tax code to ensure that:
The foreign trader is properly registered with the local tax office
The trader is fully compliant with rules on invoicing, VAT treatment, exchange rates etc.
Accounting records are maintained to exacting local standards, and that they are readily available for inspection by the tax authorities.
All VAT and associated filings are correctly prepared and submitted
Enquiries and tax inspections from the VAT office are professionally handled
HOW MUCH DOES FISCAL RERPRESENTATION COST : for a business of my size?
Cash outlay for this solution, is ONLY
€1,000 for VAT# registration (one off fee)
€350 (annual fees)
€1 / document (purchase order & selling invoice processing)
€150 / month if no transactions that month - or - 1% of monthly turnover (for the months you traded)
We will do the complete declaration and the cash outlay is 1% of the cost of goods sold (COGS). For example, if the value of the goods are €10,000 then the Fiscal Representation fee is €100 As a comparison, this is far below companies like FedEx, UPS and DHL who charge duty + a 3-5% administration fee.
STRUCTURE / SETUP :
Incorporate HK or Dubai company for the purpose of the transaction.
Advantage is profit tax is 8.25% in HK or 0% in Dubai.
Deal flow - purchase wines from supplier, using your HK or Dubai company & sell to your client’s company in destination country
We will do all the paperwork needed for the declaration
Advantage to you is it will allow you to add margin in those regions & leave profits offshore & pay virtually no tax in your HK or Dubai company (minimise US Taxes) whilst still having access to your money.