For the past few years, more and more companies have been selling services or products online to individual customers in the E.U. In Romania, online selling has grown at a steady pace. That’s why companies need to know the rules for applying VAT in these situations, in order to avoid heavy fines.
Goods and services tax, which is known as GST, is a tax based in Australia representing 10% on most goods; services and other items sold or consumed in Australia.
GST is applied to almost all Australian businesses so it can highly affect your business.
In the Netherlands, foreign companies may appoint a tax representative for all their administrative processes with tax administrations. They can also benefit from the import VAT deferral mechanism known as the “Article 23 VAT deferment license”.
Establishing tax representation in Australia enables goods to be imported and exported using a VAT number called GST in Australia (Goods and Services Tax). Tax representation therefore allows a company to operate for tax purposes like a local company even if it does not possess an entity or permanent establishment in Australia.
On 1 January 2018, Romania introduced the VAT Split payment scheme. Thanks to the introduction of the VAT split payment mechanism, the Romanian government hopes to reduce the VAT fraud and thus lessen the VAT gap which is amongst the highest ones in Europe (37.2% in 2015).