Lately the Tax Agency is not so keen to grant the inclusion in the Registry of Intra-communitarian Operators ( International VAT registration). Learn what it is required from applicants.
The International VAT registration is required for companies and self-employed individuals who regularly operate with other businesses located in other countries of the VAT zone.
This allows the parties to issue and receive invoices without VAT, also called with reversed charge.
Learn More: European VAT number and Intra-community invoices.
However the granting of it is not straight forward and, specially in the last few months, every applicant is requested to offer proof of the need for the registration as well as meeting other requirements.
- Documents that prove the actual business activity, such as business registration, autonomo registration, trading licence, rental contract…
- Identification of other operators with whom we will have business, by means of proforma invoices, quotations in which the VAT number appears.
- Report of the business address from which the activity is carried out.
The third requisite might not be so simple to meet. The potential handicaps to overcome are explained in our article:
Business address when working from Home.
Shortly after the application we most likely will receive a letter requesting these documents. It is good to be prepared for that in order to avoid an extension of the application period even longer that it normally is.
For this reason we recommend to have ready specially the documents that will depend on the other EU company. (proforma invoice, contract, etc…)
What if you cannot receive the registration for the moment but you still need to buy services or products from other EU country?
In such case, and until you are able to obtain your International VAT number, you will need to make sure that the invoices issued to you from other country include VAT.
Learn the implication of missing out this point in our article Accounting for an invoice from another EU country.