Why understanding the structure of VAT Numbers in the EU is essential?
Understanding the structure of VAT numbers in the European Union (EU) is crucial for businesses performing cross-border operations such as Intra-Community Delivery, Intra-Community Acquisition, buying or selling services, distance selling of goods…
- Correctly identifying VAT numbers helps ensure compliance with EU VAT regulations, which can reduce the risk of costly penalties for incorrect filings.
- It also aids in verifying the VAT status of trading partners, which is essential for applying the correct tax treatment on intra-EU transactions.
- Additionally, knowing the specific format of each country’s VAT number enables smoother interactions with tax authorities.
Want to acces to the structure of VAT number per country ? Download our infographic !