The VAT number, which is a must-have for a business opening up to Europe, offers companies the freedom of commercial activity. In order to use this freedom in the most correct way, the details must be learned.
You can scroll down the page to find the answers to your questions such as what is a VAT number and how to get one, and continue your sales in European countries with peace of mind.
What is a VAT Number?
VAT, which stands for Value Added Tax, is a number consisting of various letters and numbers that grants the right of authorization for commercial activity. When evaluated on a Turkey basis, a VAT number is used as value added tax.
Within the scope of European Union laws, every state has a VAT tax procedure along with an identification number. Therefore, companies in countries that are members of the European Union or have trade agreements with the EU must have a VAT number to maintain their commercial presence.
VAT, which is a tax item determined for consumers, is a consumption tax. There is a determined VAT amount for each product sold by a business. Depending on this determined amount, companies have to pay tax for the products they sell. Otherwise, the business's sales permits may be canceled.
How to Get a VAT Number?
The VAT number is obtained after submitting the required documents to the local tax authorities. In this application, in addition to documents related to your business, you must present proof indicating the authority of the company's legal representative and detailed information regarding the activities you carry out/plan to carry out.
After the application is completed, a response from the local tax authority is awaited. During this time, it is highly important to follow the application closely. Thus, any additional questions that may arise can be answered instantly. In addition, it is recommended to work with experts to complete the documents fully and avoid running into any issues during the application process.
Which Documents are Needed for a VAT Number?
Although the required documents to obtain a VAT number vary from country to country, there are documents that every business must acquire before starting the application. These can be listed as follows:
• Tax certificate of the country where the company is established,
• Certificate of incorporation specifying the details about the establishment of the company (Trade Registry for Turkey),
• Articles of Association specifying the partners, type, and scope of the company in connection with the establishment process
• Proof that the person who will fill out and sign the registration form is authorized to represent the company
How to Find a VAT Number?
To find a VAT number, businesses can check and find it on any invoice they have issued. This is because a business that can issue invoices must have a VAT registration. You can also quickly find the number you need by querying via "VAT number check" on Google and using the websites that appear.
How to Get a VAT Refund?
There is a procedure to follow for VAT refund transactions. First, the original documents are sent to the person or company wishing to track the VAT refund. The necessary checks are carried out through the number on the invoices. Following this, the documents requested by the government are completed. After these transactions, all documents are sent to the relevant tax institution.
As a result of the review by the officers at the tax institution, the documents and the VAT number are returned/refunded. The point to consider here is that the refund payment will be made to the company that submitted the petition. It is retrieved when the company submitting the petition forwards the incoming refund payment to the relevant firm.
What are Examples of VAT Numbers?
An example of a VAT number consisting of specific letters and numbers can be given as EU237543749. The letters in the first two digits of the VAT number represent the country. Therefore, for Turkish-based businesses, it starts with the letters TR.
Why is a VAT Number Important?
It is important to have a tax number because if it is detected that sales are being made without a VAT number in Europe, where tax audits are managed very strictly, sales activities are completely stopped.
In addition to this, it has an effect of improving the brand image. This is because collaborations can be made with large firms by issuing invoices. Thanks to the VAT number, you can also succeed in growing your own brand by working with large businesses.
The other and most important point in economic terms is that you will be able to receive tax refunds. You can also receive your tax refunds by fulfilling the procedures, whether retroactively or instantly.
