To fulfill the declarative requirements of the country where the company is subject to VAT, it must be identified for VAT in that country. There are two options:
Forming a company considerably increases your obligations and your operating costs (creation of articles of association, keeping accounts, payment of taxes on companies in the country, etc.).
The tax mandate is a much simpler administrative solution and allows avoiding forming a company. Indeed, a tax agent registers you for VAT in the country, which enables you to operate like a standard local company.
Certain taxable operations require VAT registration in another country of the European community. The following are a few examples of such operations: