EU VAT compliance step-by-step guide

First step: Registering EU companies for Union-OSS

Don’t get us wrong, taking advantage of the new EU tax regulation is not obligatory. But not taking advantage of it is like saying you don’t want to sell to everyone in EU. With the right tools the costs and effort required are non-existent.

First step is to register yourself to the appropriate program, and since you are reading this it is the Union-OSS. Union-OSS scheme handles both physical goods and electronic services from EU to EU end-customers. Your current domestic VAT accounting and reporting remain unaffected.

Registration is done through the national tax office portal of the country registration. If you are already registered in multiple countries, you should use the country where most business is conducted. In reality there are no other limitations to the OSS registration country other than that you have to have VAT registration there already.

If you have been registered due to exceeding the VAT free sales threshold we have REALLY good news for you: the thresholds have been removed and by using the Union-OSS scheme you can revoke the VAT registration, simplify your business and save significantly! If you are registered due to stocking goods in another country, you have to wait for the OSS part 2 for simplification. Right tools will still help you conquer the whole EU, so go ahead and register for OSS!

Union-OSS reporting is what you will have to handle quarterly, even without Union-OSS sales. With EAS tools you will receive the full report in correct format ready for filing through your tax office portal. If you have done sales without the use of EAS tools you will have to include those sales manually to the reporting. Your accountant will thank you for the full and accurate data on sales – and again you are saving money and effort.

Registration should not take more than a few minutes, filing the report even less than that. Paying the VAT is done exactly the same way as VAT for domestic sales but only quarterly.

If you are unsure how to handle the registration, just get in touch with us and we will guide you through the process!

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