Schmidt & Schmidt provides data verification services for tax and excise numbers of European companies, as well as registration data of admitted and authorized participants in foreign economic activity, based on the database of the customs authorities of the European Union.

Verification of tax and excise numbers may be necessary when concluding foreign trade agreements with European customers, when performing customs procedures, in order to avoid problems with VAT refunds, as well as to avoid fraudulent activities with products with fake excise numbers.

Checking the tax identification number of European companies

The tax identification number is assigned by the tax authorities of the countries of the European Union to both individuals and legal entities, and allows you to uniquely identify a person as a tax payer. As a rule, the tax identification number has the following form:

To check the validity of the European Company Identification Number, you need:

• tax identification number
• company registration country

Checking the VAT identification number:

The VAT identification number is used to record, pay and refund VAT within the European Union. For all European Union VAT payers, it is mandatory to indicate this number on invoices and invoices. The VAT identification number of the European Union has the following form:

Where the first letters indicate the country of registration of the company, and the digital block - the registration number of the company, which contains, depending on the country, from 8 to 12 digits.

To check the validity of the European Union VAT identification number, you need:

• tax identification number of the VAT payer
• company registration country

Checking excise numbers:

The excise number serves as proof of the company's admission to the circulation of products subject to excise duty in the territory of the European Union. It is a combination of two letters indicating the country and 13 digits.

To check the excise numbers of an enterprise in the territory of the European Union, you need:

• excise number

Checking the registration number of a participant in foreign economic activity:

Number of a participant in foreign economic activity - a pan-European identifier of a participant in foreign economic activity is necessary for the implementation of customs procedures in the EU, assigned by the customs authorities of the countries of the European Union. It consists of two letters indicating the country and a numeric block of up to 17 digits.

To check the validity of the registration number of an admitted or authorized participant in the foreign economic activity of the European Union, it is necessary:

• registration number of a participant in foreign economic activity

The data provided is for reference only and is provided in strict accordance with the laws of the Federal Republic of Germany.

Requests are processed within one business day.

Checking one number: 5 EUR

VAT identification number

Transactions with foreign business partners are subject to special provisions of the Value Added Tax Law. If any supplies to countries outside the European Union are exempt from VAT, then trade transactions within the EU are not subject to value added tax only when goods and services are purchased for one's own enterprise or sold to another enterprise.

In order for business partners to confirm their entrepreneurial status to each other and avoid VAT charges, there is a VAT identification number (Umsatzsteuer-Identifikationsnummer, Ust-IdNr. or UID) for transactions within the EU (innergemeinschaftlichen Lieferungen). In Germany, it consists of the abbreviated name of the country "DE" and 9 digits. Since the Ust-IdNr can be shown on the invoice instead of the taxpayer identification number (Steuernummer), it has become of no small importance in business relations within the country.

You can obtain a USt-IdNr for your business by contacting the Federal Tax Office (Bundeszentralamt für Steuern, BZSt) in Saarlouis by phone or via the Internet, indicating your Steuernummer and business address. The Federal Tax Office also provides the opportunity to obtain confirmation of the validity of the Ust-IdNr via the Internet. business partner. However, this kind of query allows you to find out only whether the string of numbers being checked is valid at the moment.

Those who wish can make a qualified request in writing or electronically and receive information about the name and address of the foreign partner. In addition, you can obtain detailed information from the Federal Tax Office on all the details of “intra-community” trade, in particular on the “summary declarations” (“zusammenfassende Meldungen”) required for this.

Comment

Often, entrepreneurs want with the help of Ust-IdNr. obtain VAT exemption. Unfortunately this is not possible. It is not the presence of the Ust-IdNr. that exempts from taxation, but the implementation of certain commodity transactions (for example, innergemeinschaftliche Lieferungen according to § 4 Nr. 1b i.V.m. § 6a UStG) under certain conditions. One of them is the presence of a valid Ust-IdNr.

How to get a VAT identification number?

The VAT identification number (Ust-IdNr./UID) not only simplifies business relations between entrepreneurs and freelancers within the EU, but also serves as an alternative to the tax identification number (Steuernummer) when drawing up invoices. This is sufficient reason to apply for a Ust-IdNr. and for small entrepreneurs exempted from VAT. However, very often they are unaware of their right to receive it.

The VAT identification number exists in order to to facilitate business relations between entrepreneurs EU countries. With its help, business people confirm each other the status of an entrepreneur. Thanks to this number, it is possible in many cases to refuse to charge VAT and avoid the troublesome procedure for its reimbursement.

But the VAT identification number has another practical purpose: according to § 14 Absatz 4 Umsatzsteuergesetz, it can replace the tax identification number (Steuernummer) when drawing up invoices: “The invoice must contain the following information: [...] 2. identification number taxpayer of the supplier, issued to him by the tax service, or the VAT identification number issued to him by the Federal Tax Office ... "

Unlike the individual taxpayer identification number (Steuernummer), the VAT identification number (Umsatzsteuer-Identifikationsnummer) cannot provide private information about the taxpayer's identity.

As you know, entrepreneurs whose gross turnover did not exceed 17,500 euros in the previous year and, according to preliminary estimates, will be below 50,000 euros this year, are exempt from paying VAT and submitting declarations for this type of tax (§ 19 Umsatzsteuergesetz). At the same time, they are deprived of the right to VAT refunds from the tax service. Thus, from the point of view of the legislation on value added tax, they are considered as private persons. As a rule, this provision is also valid for international business transactions.

Despite this, small businesses are also entitled to a VAT identification number (Umsatzsteuer-Identifikationsnummer), as evidenced by the following extract from the official collection of questions and answers from the Federal Tax Office: “Apply for a VAT identification number (Ust-IdNr. ) can be any entrepreneur who has the right to a VAT refund from the tax service. In addition, such an application may be submitted [...] by a small entrepreneur...”

Since the purchase of goods and services abroad upon presentation of a valid Ust-IdNr. exempted from VAT, a small entrepreneur is obliged to inform the tax service in writing about his decision to switch to the so-called before the transaction. Erwerbsbesteuerung.

Consequence: Goods and services exempted from VAT abroad are subject to value added tax in Germany without the right to a subsequent refund. The small entrepreneur is obliged to comply with his decision within two years (§ 27a UStG i.V.m. § 1a Abs. 3 and 4 UStG).

Advice

If Ust-IdNr. you only need as an alternative to a tax identification number, in some cases one call to the tax office is enough to request that your company be assigned a special tax code (Grundkennbuchstaben Umsatzsteuer (US), and after that you can apply for a Ust-IdNr.

Application for Ust-IdNr can be submitted electronically on the website of the Federal Finance Office (Bundesfinanzverwaltung) www.formulare-bfinv.de or in writing by mail or fax.

Contact details: Bundeszentralamt für Steuern, Dienstsitz Saarlouis, 66738 Saarlouis,

They have European registration. And very often they are faced with the situation that they are required to provide VAT or a VAT number.

Despite the unification of many procedures in the EU, there is no “common” VAT for all EU countries. It can even be called differently - VAT, IVA, etc. Each EU country has its own tax rates and categories of goods and services subject to taxation. The VAT rate can vary from 17-25%.

VAT (IVA) - Tax for companies engaged in trading activities

The common thing is that VAT (IVA) is a tax that is valid in the territory of the European Union. This tax will have to be paid by companies on the resulting turnover. A VAT number is required for companies whose annual turnover exceeds the specific amount specified in the laws of European countries.

Request information, consultation on company registration or request an appointment at our office

Collection of European VAT

The collection of European VAT depends on where and how business is carried out:

• If the company trades in EU countries, then the company is obliged to indicate the VAT number of customers on invoices. Thus, customers calculate the amount that is deducted from the total VAT paid to the treasury, and the main consumer of the goods has an idea of ​​what share VAT is in the price of the purchased goods. This is how the taxation system self-regulates.
• The importer of the goods pays VAT based on the customs value of the goods. In such a case, the importer has the right to deduct the tax paid.
• The exporter of goods is not subject to VAT, but is entitled to a tax deduction when purchasing the exported goods.

With this collection of European VAT, European and foreign producers receive equal conditions in competition.

Requirements for VAT registration

To be required to fulfill the following requirements:

• in the country of receipt of VAT, the company must have an operating office,
• in the country where it is planned to register a VAT number, the company must have a real trade or provision of services,
• the company must have at least one director - a resident of the country of registration of the VAT number,
• the presence of a local auditor responsible for the timely submission of reports by the company on all VAT transactions,
• in the case of using a nominee service, information about the real owners of the company is required, their confirmation of their responsibility for operations related to the provision of a VAT number.

To obtain a VAT number, a company submits its constituent documents, information about the director of the company, a list of planned activities, information about companies and a list of countries with which cooperation will be conducted.

Obtaining a VAT/VAT/IVA code is a mandatory procedure necessary for registering a company in the required jurisdiction. VAT / IVA involves a certain percentage of tax collection, which is imposed on the profit received by the company. This duty applies only to companies operating in the territory. It should be borne in mind that VAT is required for enterprises whose annual income is more than the amount declared by law. Most often, the tax is in the amount of 17% - 25%.

Why do you need a VAT number?

The presence of a VAT code is a mandatory factor in compliance with the laws of the jurisdiction in which the company is registered. Also, it is used for VAT deductions (no taxes on import / export of products).

The main difference between VAT and TRF is that TRF is a regular tax number assigned automatically to all companies registered in a jurisdiction to pay corporation tax.

In the case when the business scheme involves the purchase of products from a resident company of the EU, and subsequently the sale outside the jurisdiction of the state of registration, the VAT number is required to be able to make a tax deduction for the partner company.

Providing data to obtain a number

To assign a VAT code, a company must sell products or provide services in a given state. However, her residency is irrelevant. For example, a company needs to assign VAT if it is engaged in activities in any EU country.

Information for obtaining a VAT number

• Company name;
• Direction of activity;
• The value of the annual turnover;
• List of states in which activities will be carried out;
• Information about partners;
• founding documents;
• confirmation of ownership of the legal address and appointment of the head,
• a copy of the director's passport;
• statement.

Requirements for VAT

1. The existence of a registered office in the territory of the state in which the activity will be carried out;
2. Evidence of doing business in the country (trading, providing services, etc.) where the company is required to obtain this number;
3. The minimum number of directors is 1. The head must have the citizenship of the country in which the business is planned to be carried out.
4. Appointment of a local tax auditor whose duties include the submission of reports on time. The auditor has the right to receive all information about products or services subject to taxation.
5. In the case of using a nominee service, the issuance of a VAT number is carried out after providing information about the actual owner. This is necessary to confirm obligations for all VAT transactions.

Order VAT number

The consulting firm UraFinacne offers the service of obtaining a VAT/VAT/IVA number. The decision to issue the document is made by the tax authority of the jurisdiction in which the company is registered.

For participants in trade with EU countries in the past few years, it has become both beneficial and necessary to obtain a VAT number (VAT).

This is primarily due to the fact that since 2010, changes in the rules for levying VAT have come into force in the legislation of the European Union.

The basic rule regarding the provision of services, which is that services are subject to VAT in the country where the supplier is located, has now been changed. Since January 1, 2010, this rule has been formulated in the opposite way - as a general rule, services are considered to be provided at the location of the customer, i.e. service recipient. Accordingly, the sale of services is subject to VAT in the country of the customer's location on the principle of "reverse taxation".

Thus, in the event of trade relations (both during export and import), if one of the parties does not have a VAT number (VAT), then the VAT payer may refuse to cooperate with him, and the agent of such a company may stop serving it.

It's important to know!

The rule for the provision of services is different:

B2B (Business to Business)
Services are provided by one VAT payer to another. Services are considered rendered at the location of the buyer.

B2C (Business to Consumer)
Services are provided by a VAT payer to consumers who are not VAT payers. In this case, the rule remains the same, i.e. services are considered to be rendered at the location of the seller.

The European company - the buyer, must calculate and pay VAT at the rate of its country.

The cost of obtaining a VAT number in Europe:

• 550 € — for a Russian company
• 550 € - for a foreign company

The term for obtaining a VAT number is 2-3 weeks.

If you already have an EORI number at the time you receive a VAT number, you must re-fill the forms and get a new EORI number, so it is beneficial for organizations to receive VAT and EORI numbers at the same time.

Related materials

Article: VAT in Europe: changes in collection rules since 2010, payment procedures and reporting.
Author of the article: Vadim Kryuchkov, head of the financial consulting department of the Legal Bridge group of companies.