Accounting

Once you have got your VAT registration number, you will be required to file VAT returns every month or quarter or yearly as per local legislation. For example, any company registered with the German tax authorities as a non-resident must file taxable transactions on a periodic basis, which is known as VAT returns.

Every VAT return is different and will have different information requirements and reporting formats. In all cases, you must declare the VAT that you have charged on sales (output VAT) and you are allowed to claim back the VAT you have paid out (input VAT), subject to your taxable activity.

Depending on transactions types and values, your business may have to pay over the VAT surplus to the local tax authorities, or will be eligible to make a claim for a refund.

In addition to periodic VAT returns, there might be other statutory reporting obligations. In the European Union, every time you are involved in the movement of goods between Member States, you will be obligated to report such movements to the EU tax and customs authorities, including EC sales listings (for B2B sales) and Intrastat reports (subject to thresholds).