Value Added Tax or VAT, in short, is a tax applied to goods and services purchased or sold on the territory of the European Union. It is a single neutral system of taxation, which allows for zero-tax exports within the EU. As a result of the introduction of VAT, goods and services sold for export are exempted from VAT-tax on the territory of the union, and double-taxation is avoided. Yet, according to Your Europe, foreign goods imported into the EU are subject to VAT for the purposes of keeping the market fair and competitive. There are many cases in which companies or natural persons need to be registered for an EU VAT number, and it is important to know them to fully comply with the local laws.
Who needs to register for VAT?
There are many specific situations in which companies or natural persons must register for VAT. Full information regarding VAT requirements set out for different types of goods and services within the EU can be found here. Here are a couple of examples of businesses (bo