Cosmopolit Group, indirect tax compliances in the European territories
B to B sales and distribution
GENERAL PRINCIPLES : Fiscal Registration, VAT duties, Import process
VAT IN GENERAL
Value Added Tax (VAT) is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. VAT is charged as a percentage of the price, which means that the actual tax burden is visible at each stage in the production and distribution chain.
VAT is collected via a system of deductions whereby VAT-registered businesses can deduct from their VAT liability the amount of VAT they have paid to other businesses on purchases for their business activities. The final consumer ultimately pays VAT.
In the Member States of the EU the following transactions are subject to VAT:
- Importation of goods coming from outside the EU;
- The supply of goods and/or services by a trader within the territory of the country;
- The supply of goods and/or services to an entrepreneur in another Member State of the EU;
- The so-called intra-community acquisitions of goods/services.
ECONOMIC OPERATORS REGISTRATION AND IDENTIFICATION (FURTHER: EORI) NUMBER
In order to be able to import goods into the EU and so-called EORI number is obliged. Without an EORI number it is not possible to import goods into the EU. Sometimes it is possible to use the EORI number of i.e. FedEx or UPS.
The EORI number is not a VAT number.
As soon as a company is registered for VAT a regular VAT declaration have to be compiled and submitted. Normally it concerns a quarterly VAT declaration. Only in case a company have to pay a large amount of VAT to the tax authorities, a monthly VAT declaration will be required.
Cosmopolite is specialized in VAT registration and Fiscal representation for VAT purposes in all the EU Member States and Norway and Switzerland.
Cosmopolite will compile and submit the VAT declaration on behalf of a company. Furthermore Cosmopolite will inform the company about VAT regulations and changes in the EU VAT legislation.
Zone Industrielle de la Petite Savate, 34 – 49 rue de L’Egalité,
59600 Maubeuge, France