Does a US company need a VAT number to sell into the EU?

The U.S. does not have a VAT system, but when required companies may register and report VAT in the EU, UK, Australia and parts of Asia. VAT numbers are approved by tax authorities when your company has business activities in their country that legally require VAT reporting.

Do I need to charge VAT to European customers?

If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. But for some supplies, you may need to register and account for VAT in the country of supply. You must check with the tax authority in that country to find out how to treat the services you’re supplying.

Do I need to pay VAT in Italy?

The standard VAT rate in Italy is 22\%. It applies to most goods and services. Italy also has some zero-rated goods, the sale of which must still be reported on your VAT return, even though no VAT is charged.

Do US companies have to pay VAT?

The U.S. is one of few countries without a VAT system. By way of background, and in overly simplistic terms, it’s assessed on all goods and services. In most European countries the rate hovers around 18-20\%.

Do I need an EU VAT number after Brexit?

Business in Great Britain: To trade goods with EU countries, you need an EORI number that starts with GB. However, if your business only moves goods between Northern Ireland and the and the EU, including the Republic of Ireland – and nowhere else – then it won’t usually need to use an EORI number.

Do I need to register for VAT in another EU country Brexit?

If you, as the supplier are responsible for the import of goods into another EU member state, you are likely to have to pay VAT. You will also be required to register for VAT and account for local VAT on the sale.

Do you charge VAT to overseas customers?

VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK. Northern Ireland to a destination outside the UK and EU .

What is my EU VAT ID?

EU (European Union) VAT numbers consist of 15 digits-long alphanumeric characters, with the first two letters indicating the country of the registered business. For example, for Denmark, the first two digits of the VAT code are DK.

How does VAT work in Italy?

In Italy, VAT (Value Added Tax) is levied on the supply of almost all types of goods and services, as well as importation from outside the European Union. The standard VAT rate in Italy is 22\%. In some cases, the VAT has a reduced rate of 4\% or 10\% that may apply on basic products, while exports are zero-rated.

How does VAT tax work in Italy?

The Italian standard VAT rate is 22\%. Reduced rates are provided for specifically listed supplies of goods and services, such as: 4\% for listed food, drinks, and agricultural products, and e-books/e-periodicals that meet certain requirements.

Do overseas companies pay VAT?

If you are an overseas seller who owns goods of any value that are located in the UK at the point of sale you must register and account for VAT on any sales you make directly to customers in Great Britain or Northern Ireland.

Do I charge VAT for services to EU countries after Brexit?

Post Brexit B2B EU states will be a foreign country for UK VAT purposes. After Brexit the general position will be that where an EU business provide services to a business customer in the United Kingdom, VAT will not be chargeable in the supplier’s state.

When do I need to register for Italian VAT?

If you’re involved in distance selling, you will be required to register for Italian VAT if your sales exceed the €35,000 threshold in a calendar year. There are however no distance selling thresholds for electronic or digital services to consumers under the new MOSS VAT rules.

What is the distance sales VAT registration threshold in Italy?

A VAT registration, if required, is due prior to the provision of any supplies. It is important to follow this requirement as the recovery of back-dated input VAT is difficult in Italy. If the supplies are the sale of goods over the internet, then there is a distance sales VAT registration threshold of €35,000 per annum.

How does the Italian VAT system work?

The whole VAT system is overseen by the Ministry of Finance. As with all EU countries, companies trading in Italy and supplying taxable goods or services, must comply with the Italian legislation. This included the obligations to register for Italian VAT, comply with the VAT rules and complete regular Italian VAT returns and other declarations.

Is it difficult to recover back-dated input VAT in Italy?

It is important to follow this requirement as the recovery of back-dated input VAT is difficult in Italy. If the supplies are the sale of goods over the internet, then there is a distance sales VAT registration threshold of €35,000 per annum.