Reverse VAT collection when exporting goods to a number of EU countries

[dkoz]

Dear colleagues!

Could you share your opinion on the current issue of calculating VAT on exports in the context of the unstable tax policies of several EU countries?

How can Russian exporters minimize the risk of disputes with tax authorities, especially in light of the recent changes in EU legislation regarding the reverse charge of value-added tax? What precautions should companies exporting products to Europe take to avoid double taxation and ensure the legality of applying the zero VAT rate?

I would appreciate constructive advice and experience from fellow practitioners who have faced similar situations.

Thank you in advance to all participants.

[dmir]

The relevance of the issue of calculating VAT on the export of goods is becoming particularly acute in the context of the volatility of the international economy and changes in the tax legislation of European countries. The unstable tax policies of a number of European Union countries create additional risks for Russian exporters, who are forced to adapt to the new rules of the market game.

One of the key issues that causes the greatest difficulties is the system of reverse charge mechanism. This practice assumes that the buyer of the product becomes responsible for paying VAT in his country, and not the seller, as it was before. For Russian businesses, such a change carries potential threats in the form of possible double taxation and the risks of tax disputes.

To minimize such risks, Russian exporters are advised to take a number of preventive measures:

1. Thorough verification of counterparties
Conducting detailed customer checks before concluding transactions reduces the likelihood of cooperation with unscrupulous partners. It is necessary to make sure that the buyer has all the necessary registration documents and confirm his status as a VAT payer in the country of destination of the cargo.

2. Documentation of operations
Special attention should be paid to the correct preparation of invoices and other primary accounting documents. The use of an electronic invoicing system (for example, an EDI system) increases the transparency of calculations and reduces the risk of errors.

3. Registration in EU countries
With active cooperation with European buyers, it is advisable to consider the possibility of registering a company in one of the EU countries, which will allow for simplified VAT refund procedures and provide more guarantees of compliance with local legislation.

An integrated approach to minimizing risks associated with proper documentation, thorough verification of partners and timely involvement of professional consultants can significantly increase the chances of Russian companies successfully exporting to Europe and reduce the likelihood of conflicts with tax authorities.