Making the right decision about whether or not to be a VAT payer is crucial for the client. Choosing the wrong VAT status (VAT payer vs. non-payer) can result in financial losses amounting to thousands of euros.

In addition to administrative services related to registering a company for VAT, we also provide our clients with consulting and, if necessary, detailed calculations to help them make the right decision.

We will advise you on what documents you need to submit to the tax office so that the tax administrator can fully approve your application. We will also fully represent you before the tax office, and all you’ll have to do is pick up your VAT certificate.

VAT Payer vs. Non-VAT Payer

Just as the choice of legal structure (limited liability company vs. sole proprietorship), the choice between being a VAT payer and a non-VAT payer is crucial when starting a business. The difference between the two options, depending on the type of customer, can be as much as 40% of your profit, depending on whether or not you are a VAT payer and to whom you sell your goods or services.

It’s definitely worth your while to be a VAT payer if:

• You purchase goods or services from a taxpayer and sell them to VAT taxpayers.
• You sell services only, or almost exclusively, to VAT payers.
• A large portion of your purchases includes VAT, and you also sell to VAT-registered customers.

It definitely isn't worth it for you to be a VAT payer if

• Do you sell services to non-VAT payers?
• You sell goods and services to non-VAT payers at a high markup

For your consideration

If the ratio of your customers is roughly even (paying vs. non-paying)

The service for registering a limited liability company (s.r.o.) for VAT includes

• Consultation with the company’s managing director prior to submitting the application. The consultation involves a thorough review of the applicant’s planned business activities and the status of preparations for starting the business. Based on this information, we will propose a list of documents that the company will be able to submit and that will be sufficient for the tax office to approve the VAT registration application.
• Preparing the necessary documentation and filing the application with the tax office.
• Personal representation of the client in the VAT registration process.

Warranty

We provide our clients with administrative services related to VAT registration, not the actual assignment of a VAT ID number. The assignment of a VAT ID number falls exclusively within the jurisdiction of the tax authority. Given our experience and the number of companies we have successfully registered, it is almost certain that if you are serious about doing business, you will be able to obtain the necessary registration documents without having to create fictitious ones.

Our Experience

We have successfully processed more than 700 VAT registration applications. If a client submits the documents we recommend, we guarantee that the application will be approved.

We have a 99% success rate for submissions.

The only unsuccessful registrations were those where there was no basis for registration (the client did not submit documents proving eligibility for registration). We strive to prepare all applications and subsequently submit them to the tax office so that, once the required documents identified during the consultation are provided, the registrations are approved without the need for additional information or delays.

Guarantees

Security deposits for VAT registration have not existed for several years, as this was a discriminatory provision. In practice, therefore, a taxpayer applying for VAT registration can no longer be required to provide such a security. The tax authority may refuse voluntary registration only on the grounds that the applicant is not a taxable person—that is, does not engage in economic activity within the meaning of Section 3 of the VAT Act.

The 3 Most Frequently Asked Questions from Our Clients

1. Can a newly established company also register for VAT?

Of course, 90% of our clients are start-ups.

2. How long does it take to register for VAT?

The statutory deadline for registering a company for VAT is 21 days from the date the application is filed. However, we know from experience that the standard processing time is around 14 days; for smaller companies, it is often even shorter.

3. When can I issue an invoice with VAT?

This is a common mistake our clients make when, out of ignorance, they issue invoices with VAT before they receive their VAT ID number. A client may only issue invoices with VAT if they already have a VAT ID number.