Each country has its own specific rules for companies looking to register for a local VAT number, which are often difficult to deal with due to language and administrative barriers.
Once registered, companies are required to submit periodic Value Added Tax compliance returns and make regular VAT payments. Each country has highly detailed requirements, enforced with tough penalties and interest charges for infringement. These requirements are also subject to constant changes, potentially making them difficult for businesses to follow.
Finally, some businesses operating across borders may incur foreign VAT that they cannot reclaim through their domestic VAT returns.