Although most Chinese companies are still using freight forwarders’ VAT numbers to conduct business activities within the EU, this method is still risky. How to apply for your own VAT number according to normal procedures and requirements?
Chinese companies or individuals generally need to go through European tax agents to handle it. Tax agents will bear the tax legal responsibilities for related VAT issues. In other words, Chinese companies need local third-party tax agencies in Europe to handle VAT tax numbers.
How to find a local third-party tax agency in Europe? Then you have to find a reliable registration company first. There are many VAT registration agencies now, and there are some confusing phenomena, such as unprofessionalism, irresponsibility, and delays in tax declaration. So when choosing a VAT registration agency, you need to open your eyes and compare prices.
Then someone will ask, can I do it myself? It can’t be said that it is not possible, but it is quite troublesome, and many conditions may not be met by the seller, such as a lease contract with a local office address, and the director’s N1 number. So the above application method is simpler.
In addition, it should be noted that according to the EU tax law, the VAT number must be registered where the warehouse is located. In other words, if a Chinese company registers a French VAT number, it cannot “legally” use overseas warehouses in other parts of the EU. Does this mean that the French VAT number cannot be used for clearing goods in other EU countries? Not really! However, the goods need to be transferred to France for warehousing and sales. Otherwise, the VAT paid in other EU countries will be used as the input of the French company’s VAT.