International VAT registration is required for companies and self-employed individuals who regularly operate with other businesses located in other countries of the VAT zone.
This registration allows the parties to issue and receive invoices without VAT, also known as reverse charge invoicing.
However, obtaining the registration is not always straightforward. Applicants are often asked to provide proof of why the registration is needed, as well as evidence that the business meets the practical requirements.
Requirements
The Tax Agency may request documents such as:
- Documents proving the actual business activity, such as business registration, autonomo registration, trading licence or rental contract.
- Identification of other EU operators with whom you will do business, such as proforma invoices or quotations showing their VAT number.
- A report or evidence of the business address from which the activity is carried out.
Business address
The third requirement is not always simple to meet, especially for people working from home.
The potential issues around this point are explained in our article about business addresses when working from home.
Be ready before the request arrives
Shortly after the application, you will most likely receive a letter requesting these documents.
It is worth preparing them in advance to avoid extending an application period that may already take longer than expected.
For this reason, we especially recommend preparing the documents that depend on the other EU company, such as a proforma invoice, contract or quotation.
What if you cannot obtain the registration yet?
If you cannot obtain your international VAT registration for the moment but still need to buy services or products from another EU country, you should make sure that invoices issued to you from that country include VAT until your registration is approved.
Missing this point can create accounting and tax complications.