For digital service providers in Europe, VAT registration in Europe is crucial due to specific rules governing tax calculation & payment. Since the 2015 changes, all B2C (business-to-consumer) digital services—such as software, online courses, database access, and more—are taxed at the rate of the consumer’s country. This applies regardless of the company’s registration location. Therefore, businesses must pay tax at the local rate where the buyer resides, to ensure compliance with EU tax obligations & avoid penalties.
Why you shouldn’t delay VAT registration for digital services
- Mandatory Registration: is required in most EU countries for digital service providers, even for minimal sales. Late application can lead to fines & back tax.
- Platform Requirements: Do you operate through a marketplace? Platforms may block your profile if an active VAT number is missing, leading to revenue losses until losses until your account is restored.
- Reclaiming Costs: Without proper registration, you can’t reclaim tax expenses on operational expenses, increasing financial burdens.
The One Stop Shop (OSS) system simplifies registration & reporting. It allows businesses to file a single return for all EU countries instead of registering individually. Companies register in their home country (or a chosen EU jurisdiction if located outside the EU) and submit quarterly reports. This ensures compliance, prevents account blockages, and optimizes costs.
Costs and timelines for VAT EU number registration
The registration process timeline can vary, often taking just a few days depending on the country. Our services include preparing documents, liaising with tax authorities, and securing your VAT number. The total cost depends on your specific needs, which will be discussed during a detailed consultation.
