VAT registration for the search fund entity in Europe
April 17, 2023
by a searcher from Brown University in Dublin, Ireland
Hi everyone.
Quick question: Do you know if the search entity (traditional search fund) is eligible for VAT registration and claiming back VAT in Europe? We are incorporated as a Limited liability company.
from IESE Business School in Barcelona, Spain
https://enty.io/en/incorporate-estonia?utm_source=google&utm_medium=cpc&utm_campaign=EST-INCORPORATION-EU-ENG-GROUP2&gad=1&gclid=Cj0KCQjwu-KiBhCsARIsAPztUF3W6rE4XanuVyfeHhjvhZTa_hsXVoPZMGXFSxoqBaFX6OMMeMK_DJwaAgIxEALw_wcB
Every EU country requires its own VAT number unless you're an e-commerce provider, but once you have an "anchor" in one country, it's a little easier to navigate through the rest of the EU (English speakers will find Estonia easy to navigate).
Hope this helps - feel free to reach out directly to discuss further!
from Universidad de San Pablo CEU in Madrid, España
Some limited societies IAE´s, due to their kind of activity (with no revenues) don’t have the obligation to registry for VAT and cannot deduct VAT expenses.
Other IAE limited societies, in which there is any kind of revenues, have the obligation to registry for VAT, present each quarter its revenues, and the possibility to deduct VAT expenses whenever it has the corresponding invoice.
Therefore, as you may deduct, even if Search funds normally have equity injections, if for any reason it achieves any small revenues and has the corresponding IAE, you should also be eligible to deduct expenses. If not there is no obligation.
Happy to hear any other thoughts or discuss more profoundly in private.