VAT Registration refers to the process where a business registers with the local tax authority to obtain a VAT number, allowing it to charge, collect, and recover VAT in a particular country.

Who issues VAT registrations? 

VAT registrations are issued by the local tax authorities of each country. For businesses operating within the European Union, VAT numbers are typically provided by the respective country’s tax office, following local regulations. Non-EU countries may have similar tax systems that require businesses to register for VAT or equivalent taxes.

Why are VAT registration settings important for VAT recovery? 

VAT registration is essential for reclaiming VAT because it impacts the rules of VAT deductions:

Process: When being VAT registered in a Country VAT is recovered as input VAT during the VAT return filing. It is not a foreign VAT recovery Process such as the 8th or 13th Directive.

Deadlines: While foreign VAT on the 8th and 13th Directives have annual deadlines, past VAT can be reclaimed on longer periods for Domestic and foreign VAT registration processes

Reciprocities: When VAT registration is active in a foreign country, recovery is no longer restricted by reciprocity agreements. As a result, each expense line is evaluated individually in VAT4U.

How to add a registration in VAT4U

In the VAT4U system, you need to specify the countries where your company is VAT registered. To do this, click on the "Add New Registration" button. When adding a new registration, you'll need to provide the Country, VAT Number, and the Valid From and Valid To dates.

You also have the option to enable "Exclude from import" and select Claim via the 8th or 13th Directive. When the "Exclude from import" switch is on, the system will skip expenses that match this VAT registration flow during the mass data import. Select Claim via the 8th or 13th Directive if you wish to claim your VAT from the selected country via the 8th or 13th Directive flow even if the company is VAT registered in this country. In this case, VAT Registration will be ignored in the Data entry, Reports, and Claim creation modules. Actions allow you to edit or delete an entry.

You can manage your VAT registrations by using the Actions menu, where you can edit or delete entries as needed.

When you update a company's VAT Registrations, any changes will automatically adjust the
VAT Flow and Refund Status for related expenses in the system. The system will update these in the background, and depending on the number of expenses affected, this may take some time. You can monitor the progress of these updates in the Running Jobs Report.

If you add a new VAT registration and opt to claim via the 8th or 13th Directive, the system
will handle these claims according to the specific requirements of these directives, adjusting
the VAT Flow and processing of the claim as per the required data and documentation
procedures.