A UK-based company specialised in the trade of medical products was facing increasing challenges with its VAT obligations in the European Union (EU). Active in B2B transactions across several Member States, the company managed multiple transactions: direct deliveries from EU suppliers to EU final clients, storage in some EU countries but not in others, and frequent cross-border movements between the UK and the EU.
With three VAT registrations already in place, the company struggled to obtain a clear overview of its obligations. Their internal team was overwhelmed, and the complexity of transactions left them at risk of non-compliance.
This case study focuses on how Easytax turned confusion into clarity and complexity into compliance, for a company navigating the challenges of EU cross-border trade.
The challenge : when multiple VAT registrations become a maze
The company was confronted with a complex VAT situation that had gradually become unmanageable. Several VAT numbers had been obtained in different Member States ; but without a clear understanding of why they were needed or how they should be used. In practice, the company had to navigate a patchwork of EU VAT registrations, each corresponding to different transactions, without any coherent strategy behind them.
Depending on the country, the company operated with or without local storage platforms, which significantly changed the VAT treatment of its transactions. It could be dealing simultaneously with Intra-Community acquisitions and supplies of goods, exports or even domestic transactions. For each situation, the company needed to work out which VAT number to use and the absence of a clear framework made every transaction a puzzle. To make matters worse, the treatment of domestic transactions could vary from one Member State to another, adding yet another layer of uncertainty to the decision-making process.
While such a structure can be advantageous when properly managed (for instance, optimising cash flow by purchasing without VAT), it can quickly become dangerous and costly if not fully mastered. The risks included very long VAT refund delays, or even irrecoverable VAT in cases where transactions were handled incorrectly. Each new operation became a source of stress, uncertainty, and potential financial loss.
This lack of clarity was all the more critical as the company wished to continue its EU operations after Brexit. Faced with mounting complexity and the fear of making costly mistakes, the management team even considered stopping certain activities altogether.
Our approach: Turning VAT complexity into clear compliance
At Easytax, our intervention began well before taking over the client’s VAT numbers. For us, a VAT registration is never an end in itself. What truly matters is understanding what will be declared under that number. When we first reviewed the company’s existing registrations, we found that they had three VAT numbers, one of which had been obtained without a clear rationale. After careful analysis, we even recommended closing this number if it was not used to simplify the structure and reduce risk. Nevertheless, we still considered this number when mapping all transaction flows, because our priority was to have a complete and accurate view of the client’s operations.
Our process began with a series of calls to map the company’s flows, understand the physical movement of goods, invoicing practices, and the VAT implications of each scenario. Once the VAT numbers were secured and the compliance process initiated, we continued with regular video meetings during the first months, checking the consistency of flows and verifying that invoices accurately reflected the underlying transactions. This approach ensured that nothing was declared mechanically and was rather based on a shared understanding of the supply chain.
Our support does not stop once the contract is signed. On the contrary, we see this step as the start of a partnership. We remain closely involved over the long term, guiding the client whenever new flows or exceptional cases arise. By helping them master the VAT treatment of their own operations, we make the compliance process more accessible and reliable, both for the client and for us as their VAT partner.
The results: From puzzles to process: achieving operational and strategic VAT clarity
The collaboration quickly delivered tangible benefits. The company regained clarity and confidence in its VAT obligations across the EU. To simplify day-to-day operations, we developed a comprehensive table covering all possible transaction scenarios. This table effectively automated the treatment of purchases and sales invoices: each entry clearly indicates which VAT number to use, whether VAT should be applied, and how the transaction should be treated for VAT purposes. No longer did each invoice become a puzzle; it was simply a matter of following the table.
Operationally, the client was on the verge of considering the closure of some of its VAT numbers due to the complexity and uncertainty it faced. Today, this trend is in the past. The company now feels in control, confident, and supported. Even as transaction flows evolve, the client knows it can rely on Easytax from the outset of each transaction to discuss VAT requirements and assess whether a transaction is feasible. This proactive support allows the client to make informed decisions and focus on business growth rather than VAT uncertainty.
Strategically, the client now approaches EU transactions with a much calmer and more confident mindset. The clarity and guidance provided by Easytax have created a secure framework that not only protects existing operations but also encourages the development of new business. Knowing that they can rely on us for advice and support empowers the client to explore new opportunities while remaining fully compliant.
Compliance was secured, reducing exposure to audits or penalties. Internal processes were simplified, allowing the client’s team to focus on their core business rather than being bogged down in technical VAT issues. Most importantly, the company gained the ability to anticipate and manage future flows, ensuring that tax risks are addressed proactively rather than reactively.
Key takeaways: Mastering VAT to unlock business growth
This case illustrates the importance of VAT clarity for companies operating complex cross-border supply chains. Operationally, the client regained control over transaction flows, automated invoice handling, and reduced errors. Financially, VAT recovery is secured and cash flow optimised. Strategically, the client now approaches EU transactions with confidence and is empowered to explore new business opportunities, knowing that expert guidance is available whenever needed.
With the right partner, VAT compliance becomes not just an obligation but also a driver of efficiency, security and growth. At Easytax, we invest the time to understand each client’s transactions and build a compliance framework that lasts. Every client, regardless of size or complexity, receives the same attentive support, ensuring that each transaction is understood, properly structured and fully compliant. This hands-on approach gives clients confidence and peace of mind, enabling them to focus on business development rather than VAT uncertainty.
