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VAT registration is a procedure established by local VAT regulations or international uniform VAT rules on the grounds of a common market(like the EU), which defines under what conditions local or foreign economic operators need to be VAT registered. The VAT registration represents a first step for taxable persons who are obliged to collect VAT on their taxable supplies.

In a generic sense, the VAT compliance scheme is a sum of different kinds of obligations that a taxable person needs to follow to be treated as a VAT-compliant taxable person. From the perspective of a professional services provider, VAT compliance mainly starts with determining the VAT registration obligation of the business in question, then passes through VAT reporting and payment activities, through determining VAT exposure in different jurisdictions if business operations are of a cross-border nature.

There isn’t a uniform definition of this concept. There could be differences with VAT compliance services depending on the portfolio of services the VAT service provider offers. Generally, under VAT compliance services, the professional service provider means VAT registration, VAT reporting, VAT payments, VAT Consultation, VAT advisory services, and the like.

Sure. Under the term VAT reporting, it generally meant the adequate administration and tracking of the submission of VAT declarations and VAT payments.

From a non-specific perspective, the answer would be no. The tax registration for foreign providers of digital services needs to be thoroughly evaluated within the scope of tax rules that determine the place of supply. In most cases, the place of supply for electronically supplied services(or digital services) lies within the destination country. The national tax framework of the country where the end customer is based mostly prevails when determining the tax rules for these transactions.

It depends on several factors. One of the factors that often determines this situation is the existence of simplified registration and reporting procedures for non-resident providers of digital services or e-commerce suppliers.

In most situations, non-filling VAT returns under a prescribed period will result in fines and/or penalties for taxable persons. However, it should be noted that in some countries, the due VAT filing will not be followed by a penalty or fine.

In most countries, the taxable person who should have been registered for X amount of time but has neglected this obligation and related VAT filings could do the backdate registration and VAT filings. However, in most cases, it will be obliged to pay fines and/or penalties for non-compliant behavior.

Yes, we can. Our team of tax experts, tax accountants, and reporting specialists have extensive experience managing highly complex cases in which a taxable person must be registered in dozens of jurisdictions. We are also highly experienced in managing supplies of e-commerce sellers or digital service providers with separate operations schemes through their websites and different digital platforms or marketplaces.

This depends on the local rules and regulations specific to supplies made through digital marketplaces or platforms. In some jurisdictions, third-party e-commerce providers are obliged to be VAT registered, but the platform operator handles the VAT reporting; in some countries, the entire VAT compliance process for sales made through the digital platform should be managed by third parties.

In many cases, there are differences between local and non-resident digital platforms regarding VAT reporting requirements for supplies made by local or foreign third-party providers via the platform.