VAT: Registration Reasons and Procedures in the EU

For Swiss companies, there are various reasons to register for VAT in the EU. The following blog post will also discuss the procedure for doing so.

Reasons for Registration

For a Swiss company, registration can lead to trade optimization through EU customs clearance. This is because with their own EU VAT number or through a fiscal representative, tax-exempt intra-community supply becomes possible. However, fiscal representation is not recommended for regular deliveries. The issue of work deliveries must also be considered. With triangulation, tax neutrality can be achieved, thus removing trade barriers.

The registration procedure in the EU is not uniformly regulated, however. Depending on the country, different national laws apply. For example, in Italy and France, fiscal representatives must be appointed. The situation is different in Germany, where registration is possible without a fiscal representative. The same regulation generally applies in Austria, however, the Austrian tax authorities do not send mail abroad.

With the amendment of the Swiss customs laws, registration for imports and exports has been possible only electronically since January 1, 2013. Similarly, documents must be stored electronically. In the case of triangulation, the invoice must indicate the transfer of VAT liability to the final purchaser ("Transfer of tax liability due to intra-community triangular operation in the sense of Art. 28e part E paragraph 3 of the 6th EC Directive").

If invoicing is done under the reverse-charge method, the note should read: "Transfer of tax liability to the service recipient."

In an intra-community delivery, both VAT ID numbers must be indicated. Here too, a note must be added: "Tax-free as intra-community delivery." In this case, the purchaser declares the intra-community acquisition, and there are extensive reporting obligations.