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As a small business owner, do I need a VAT number for transactions in the EU?

August 3, 2016 | 25,00 EUR | answered by StB Steffen Becker

Hello!
My questions:
1. I am a small business owner and have customers in Switzerland and Austria. I have been told that I need a VAT ID for this. I also sometimes employ colleagues from the EU. Do I need a VAT ID for that as well?
2. Do I need a trade license as a writer for small affiliate earnings and earnings from Google Adsense? My trade office did not know...
Thank you and best regards,
R.

StB Steffen Becker

Dear inquirer, thank you for your inquiry. I will answer this within the scope of an initial consultation based on the information provided by you. Missing or incorrect information can influence the legal outcome.

As a small business owner, you also need the VAT number for purchases of goods in other EU countries that are subject to acquisition tax. You also need the VAT number if you sell goods and services to businesses in other EU countries, which then fall under the reverse charge procedure.

This is advantageous if the VAT rate in other EU countries is higher than in your own country.

You do not need the VAT number for hiring (foreign) personnel.

The income mentioned under point 2 refers to income from a business (commission income), so you must register a business.

I hope I have been able to provide you with a brief overview of the tax situation. However, in order to make a comprehensive and more specific statement, detailed information about your personal circumstances will be needed.

Kind regards,
Steffen Becker
Tax advisor
stb-becker@arcor.de