Over the years, I've heard this many times: "Why should I have to register for VAT in Germany for our annual congress? The revenue is collected in a bank account in the USA and we are a US-based association."
To answer, I always give a very simple example. Let's say I go to Japan and purchase a ticket to go see the recent Sky tree tower observatory. When the invoice shows the local consumption tax, I can't say: But I am based in the USA, I'm not liable for Japanese sales tax.”
The reality is that the service sold to me is rendered in Japan so Japanese sales tax will apply no matter who is purchasing the service.
Obviously, each country has its own set of rules on what else triggers the requirement to register or not for the local sales tax regimes. Some countries have a set threshold of yearly taxable sales, some don't even allow non-established entities to register and claim back any sales taxes.|
But to assume that your association's headquarters geographical location or where the revenue is deposited dictates the requirement to register or not, is simply false.