Customs Clearance

Concept

Application for a tax account:

  • Application for a sales tax number
  • ID#


In certain EC countries, an application for a tax account, with its associated sales tax and ID numbers, is possible only through a financial representative.

Status:
According to trade regulations, Swiss or other non-EC clients who have fulfilled the above conditions do NOT have domestic status, but can conduct trade as if they were domiciled in the EC.

Reporting obligation

  • reporting of statistics to the foreign trade statistics office
  • on a regular basis, reporting of deliveries within the EC


Billing:
With the exception of deliveries in the country in which registration has taken place, invoices can be calculated without the value-added tax, on the condition that the client has registered.

example:
- German tax account number to German tax account number > bill with German value-added tax

- German tax account number to Netherlands tax account number > bill without value-added tax

Billing example:

  • Swiss supplier to German customer
  • Swiss supplier to other EC customers
  •  

EC customers are obligated to report to their national tax authorities, just as they do in regard to other business transactions within the EC.

Financial Matters:

  • bookkeeping with the tax authority


As noted above, in some countries this task must be performed by a financial representative.