How to Register for VAT? Everything You Need to Know

How to Register for VAT? Everything You Need to Know

One of the key obligations for any business carrying out economic or professional activities is registering for VAT in the Member State where it is established. However, depending on the nature of their operations, businesses may also be required to register in other countries where they carry out taxable transactions.

What Is VAT Registration and Why Is It Required?

VAT registration is a formal process through which a business obtains a VAT identification number, allowing it to carry out taxable activities and issue invoices with local VAT in a country where it is not established or resident. This number is essential for fulfilling VAT obligations, such as charging local VAT on invoices, submitting VAT returns, and paying VAT to the relevant tax authorities.

A business must register for VAT in a country when it carries out taxable transactions there, and the reverse charge mechanism does not apply. Also, there are other types of transactions that, even if VAT exempt, require a VAT registration, such as the intra-Community transactions. In such cases, the company is required to charge local VAT or report the transaction in the relevant VAT return, European Sales List (ESL), or European Sales and Purchases List (ESPL), depending on the nature of the activity.

In short, VAT registration is a necessary compliance step that follows an assessment of whether a company’s activities in another country trigger local VAT obligations.

You cand find here our article explaining what is a what is a VAT number and how can I get one.

Who Needs to Register for VAT?

According to general VAT rules, a business or individual must register for VAT in a country when carrying out certain taxable transactions there. These may include selling goods, providing services, or importing products that are subject to VAT in that jurisdiction.

In contrast, non-taxable persons — meaning individuals or entities not engaged in any business or economic activity — are generally not required to register for VAT.

Certain European Union Member States as well as other countries, have implemented special VAT exemption regimes for small and medium enterprises not exceeded certain turnover thresholds. These schemes, regulated at a domestic level, allow small enterprises to sell goods and services without charging VAT to their customers, losing the right to deduct VAT on goods and services received. Particularly, at EU level, as of 1 January 2025, the small business regime only applicable to EU established companies is applicable beyond the Member State of establishment, according to general and country specific conditions.

You can find here our article for EU Scheme for Small enterprises.

When Do You Need to Register for VAT?

According to general VAT rules, a business must register for VAT in a country other than its country of establishment when it carries out any of the following taxable transactions:

• Domestic sales of goods where local VAT must be charged, unless the reverse charge mechanism applies.
• Domestic supplies of services, where local VAT must be charged, unless the reverse charge mechanism applies. This will be the case only of those supplies that consist of exceptions to the general rules for place of supply of services (e.g., services connected to immovable property, admission to events, restaurants or catering services, etc.).
• Intra-Community supplies and acquisitions of goods between EU countries. Also, movements of own goods qualify as deemed intra-Community transactions requiring a VAT registration in country of dispatch and arrival.
• Exports of goods to countries outside the EU.
• Imports of goods, where VAT registration may be required to declare and recover import VAT.

However, not all transactions automatically trigger a VAT registration. As a general rule, the supply of services or domestic purchases of goods do not require a VAT number.

Check your VAT obligations using our VAT Registration Checker — a free tool to help you determine if registration is required in a specific country.

Common scenarios where VAT registration abroad is required:

• Scenario 1: A company purchases goods in Spain (as a non-established business) and exports them to a client in the United States. While a VAT number is not required to purchase the goods, the export activity requires Spanish VAT registration.
• Scenario 2: A French company sells goods domestically in the Netherlands to a customer who is not established there. Since Dutch VAT must be charged on the sale, the French company must register for VAT in the Netherlands.
• Scenario 3: A company buys goods locally in Poland and sells them to a company in Austria. This requires VAT registration in Poland for the intra-Community supply of goods dispatched from Poland.
• Scenario 4: A non-EU company imports goods into Spain and subsequently moves them to a warehouse in France. The company must register for VAT in Spain and France. With the Spanish VAT number will handle the import and the deemed intra-Community supply of goods to France, following the movement of own goods. In France, this business will report under its French VAT number the deemed intra-Community acquisition of goods.
• Scenario 5: A German company provides cleaning services for a building located in the Netherlands. The customer is also a non-established company. This service follows particular rules, so the supply is located domestically in the Netherlands. Therefore, the German company performs a domestic supply of services in the Netherlands and must register for VAT purposes and charge local VAT because the reverse charge does not apply.

What Do I Need to Be VAT Registered?

The VAT registration process varies depending on the domestic legislation of each country. As a result, the exact documentation required can differ from one jurisdiction to another. However, the following documents are typically required for most VAT registrations:

• VAT certificate from your home country
• Certificate of incorporation or extract from the trade register, showing company details
• Articles of Association issued during incorporation
• Proof of taxable transactions that justify the VAT registration (e.g., contracts, invoices, transport documents)
• Proof of authorization, showing that the person signing the registration form is legally allowed to represent the company

In some countries, non-EU companies are required to appoint a fiscal representative. This representative will act on the company’s behalf in dealing with local tax authorities and ensure VAT compliance.

Check which EU countries require non-EU businesses to appoint a fiscal representative for VAT registration.

Where to Register for VAT in the EU?

Companies based in an EU Member State must register for VAT in the country where they are based. They also need to register for VAT in any country where they have a permanent establishment or where they have business activities as non-established and these transactions require VAT registration, as previously explained in this article.

Learn more about registration requirements in specific countries:

1. VAT Registration in Austria
2. VAT Registration in Belgium
3. VAT Registration in Cyprus
4. VAT Registration in France
5. VAT Registration in Germany
6. VAT Registration in Greece
7. VAT Registration in Luxembourg
8. VAT Registration in Poland
9. VAT Registration in Romania
10. VAT Registration in Spain
11. VAT Registration in Sweden
12. VAT Registration in Switzerland
13. VAT Registration in the Netherlands
14. VAT Registration in the UK
15. VAT Registration in Ireland
16. VAT Registration in Denmark
17. VAT Registration in Finland
18. VAT Registration in Czech Republic.

How to Register for VAT: Step-by-Step Process?

Step 1: Gather Required Information and Documents

Collect all necessary documentation and information in accordance with the VAT registration rules of the relevant country. In most cases, the following information and documents will be needed:

• A recent extract from the company’s trade register
• A VAT certificate from the country of establishment
• The full name and ID of the company’s legal representative
• A description of the company’s business activity
• The intended effective date of registration

Step 2: Prepare the Power of Attorney and Registration Forms

Using the collected information, prepare the Power of Attorney (PoA) and any country-specific registration forms. These documents must be signed by an authorized representative of the company.

Step 3: Submit the Application to the Tax Authorities

Send the signed PoA and all required documentation to the tax authorities in the relevant country. While many countries accept online submissions, some — such as the Netherlands or Germany — still require applications to be sent by post.

Step 4: Await Confirmation and Respond to Any Requests

After submission, the tax authorities will review the application. If additional documentation or proof of business activity is needed, they will contact the company directly.

How Long Does It Take?

The VAT registration process typically takes 4 to 6 weeks from the date a complete and correct application is submitted. However, this timeline can vary depending on the country, the tax office's workload and whether further information is requested by the tax administration.

What Happens After You Register for VAT?

Once your business is registered for VAT (Value Added Tax), you will receive a unique VAT number and an official certificate confirming your registration. The registration date is very important, and VAT registrations may be backdated in some countries. From the registration date, you will need to:

• Issue invoices that clearly display your VAT number
• Maintain accurate records of all business transactions, including sales and purchases
• Prepare and submit periodic VAT returns — typically on a quarterly basis.

One major benefit of VAT registration is the ability to reclaim VAT paid on eligible business-related expenses. This can help improve your company’s cash flow and reduce the net cost of doing business.

However, it is essential to meet all VAT filing deadlines and comply with national VAT regulations. Failure to do so may result in penalties, interest charges, or audits by the tax authorities.

In summary, VAT registration introduces new administrative responsibilities, but it also enhances your business’s credibility and provides access to valuable tax benefits.

Take a look at our overview of VAT due dates in Europe.

What Happens If You Don’t Register for VAT When You Should?

If a company doesn’t register for VAT when it’s required, it can face several problems:

• VAT registration penalties: Tax authorities may charge fines for failing to register on time.
• Back taxes: The company might have to pay VAT owed for past periods, sometimes with interest for late payments.
• Legal issues: Operating without proper VAT registration can lead to legal trouble or audits.
• Business impact: The company may lose the ability to claim VAT refunds and might have trouble doing business with other VAT-registered companies.
• Reputational damage: It can harm the company’s reputation with customers and partners.

How to Make VAT Registration Easy and Error-Free

The key to a smooth, error-free VAT registration is to understand the required documentation and steps in detail — and carefully prepare all forms to avoid mistakes.

At Marosa, we simplify this process by managing the VAT rules for each country, gathering the necessary documents, tracking deadlines, and following up with tax authorities to secure confirmation where needed. Our thorough, country-specific approach reduces errors, saves time, and ensures that your registration proceeds without delays or penalties.

By working with a trusted VAT compliance partner like Marosa, businesses can streamline their registration process and stay fully compliant from the very start.