VAT Compliance

VAT Registration

VAT Registration number・VAT Return

① VAT Registration

"VAT registration" (VAT registration) is to register the number of the VAT. In other words it is said to "obtain value-added tax number" "obtain VAT number". Even if you conduct economic activities subject to taxation within the European region, there is an obligation to acquire the value added tax number in Europe, whether it is a Japanese company or not.

Members that should acquire VAT numbers become taxable sites for their economic activities. Therefore, even if you have acquired a value-added tax number in one member country, if you conduct economic activities subject to taxation in another member country, you need to obtain a value-added tax number in another member country . (However, there are also methods that do not acquire VAT number depending on transaction type and its conditions.)

＊Reference：付加価値税番号登録サービス

② VAT Return         

　"VAT declaration" is to declare the VAT tax amount to the tax office of the applicable member country after obtaining the VAT number.

As mentioned above, the European VAT system uses a preliminary deduction system that will offset "tax on purchase" and "tax collected on sales". If there are many taxes collected at the time of sales, tax will be paid to the tax office of the applicable member country. At this time, it is necessary to declare the tax amount to be paid according to the VAT declaration document. On the other hand, if there are a lot of taxes paid (tax paid), we refund from the tax office of the applicable member country. In this case as well, it is necessary to declare the tax amount to be refunded according to the VAT declaration form. These declarations are referred to as VAT declarations.
The duration of the VAT declaration also varies depending on the Member State and also depends on the amount of economic activity subject to taxation. It will be declared almost every month or every three months.

＊Reference：付加価値税申告サービス

③

(V) Value added tax refund

VAT refund is the most well-known system among Japanese value-added tax systems for Japanese companies. In the case of a Japanese corporation that is not engaged in taxation activities in the EU, the European VAT expended in carrying out its business refunds for all the VAT paid by each taxation office of each member country according to the VAT refund application (You can get it back). This is a VAT refund system for nonresidents.
Examples of applicable items are various expenses such as expenses of expatriate offices as well as hotel expenses, taxi fares, car rental fee, restaurant fee, etc during business trip. For VAT refunds to nonresidents, the target is "companies other than Europe that do not conduct taxable activities in Europe", so Japanese companies that are subject to taxable activities in Europe are subject to additional value It is necessary to use VAT refund on tax return.

＊Reference: our VAT Refund Service

[Case L] Reduction of taxation costs for importing and exporting
When Japanese company A delivered machinery and equipment to company B in Germany, logistics companies were asked to pay import VAT and customs duties at customs clearance. Since the cost of machinery and equipment was about 100 million yen, these costs were close to 20 million yen.
→ These tax costs can be returned by nearly the full tax cost with our own developed solution. However, please note that logistics companies should not be proposed.