Frequently Asked Questions
Frequently asked VAT / GST & Indirect tax related questions and answers
Find answers below to the most frequent VAT related questions. From basic VAT & GST terms to advanced questions regarding your VAT compliance obligations. Please contact us if you have questions left on your business situation.
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In short the changes that took place after July 2021 are: Removing the distance selling thresholds for sales of goods and setting a unified threshold of 10.000 euro…
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The Import One-Stop Shop (IOSS) is the electronic portal businesses can use from 1st July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods. IOSS only relates to the distance sales of imported goods with a consignment value of less than EUR150…
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When a seller sells to more than one EU member state then the OSS schemes can be very beneficial. More specifically a seller can benefit from:
– All sales in the EU being reported with one VAT registration only…
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No, participation to the new schemes IOSS & OSS is optional but beneficial depending on the circumstances of your business….
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You can register for the IOSS with Global VAT Compliance. Just speak to one of VAT experts and we will make sure your company is VAT compliant depending on your compliance needs…
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OSS (One-Stop-Shop) is designed for companies selling goods from one EU Member State to customers in other EU countries….
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Companies using Amazon Pan EU Fulfilment service will require to keep their local VAT registrations where stock is kept. Cross-border stock transfers will need to be filed via EC sales lists…
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Yes, there are several deviations depending on each country’s approach and incorporation of the new rules to their legislation.
For example, France declared Online Marketplaces as the importer of record for B2C imports of goods over EUR150…
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The One Stop-Shop is the evolution of the Mini One Stop-Shop previously created in the EU to help companies providing telecommunication services, television, and radio broadcasting services as well as electronically supplied services to non-taxable persons in member states…
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No. Deliveries by an online seller (from a warehouse in an EU member state) to a customer located in the same state are not to be reported via the OSS…
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In general, for the taxation of intra-Community distance sales, you will no longer need a VAT ID in every destination country if you are already using the OSS. There are several conditions that will require you to keep or apply for a VAT ID in more EU member states even if you are registered for the OSS in your country of establishment…
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If you are already VAT registered in an EU member state and you are not using a warehouse there in principle you can de-register from this country and only declare your return in the OSS…
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No, local input taxes cannot be claimed via the OSS framework. You can use the input tax refund or your existing registration to claim local input taxes.
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It is not possible to request a VAT refund in your OSS return. You can request a refund by filing a refund request or a national VAT return.
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It is possible to use the One Stop Shop procedure starting 2022. However, this is not recommended, as exceeding the current threshold of EUR 10,000 will result in a tax liability…
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There is no longer an obligation to issue invoices for cross-border distance sales declared via the OSS.
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The OSS tax payment is made once as a total for all countries.
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Yes, B2B transactions can not be processed in the OSS and they should be recorded in the local advance return.
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Yes, this registration must be kept as regulations on consignment warehouses remain unaffected by the new VAT rules. As a result, the company must keep…
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Those transactions are reported in the NL OSS. Only movement of own goods, Local and B2B Sales need to be reported in Spain.
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Businesses can register for the OSS in their country of establishment. If products are stored in warehouses in several member states then the seller still needs…
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Intra-Community transactions to Pan-EU countries will be included as ICS in the company's VAT return and as ICA in the VAT returns of…
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All EU sellers who surpass the 10.000 € threshold in distance sales to EU member states (not including their country of establishment), should opt to register for the One-Stop Shop (OSS). Also sellers established in EU member states can use the OSS…
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Since July all B2C cross-border EU sales from Austria to Germany and Italy will be reported in the Austrian OSS return. Domestic Austrian sales…
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Registration for the OSS is optional and it all depends of the way your business is setup. If your business sells in many EU countries it could benefit indeed from filing only one VAT return…
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EU intracommunity B2C sellers who surpass the new threshold of EUR10.000 not including their country of establishment should register for the OSS in order to…
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As an operating business, you may be legally obliged to register for VAT in various countries. Tax authorities can prevent your products from reaching your customers and you may incur fines if you do you not comply with the legal requirements for each country. There are two circumstances that will trigger the need for a VAT registration: Storing goods and shipping from a given European country & selling above Distance Selling Threshold.
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Just contact Global VAT compliance. GVC can assess which countries your business requires to be VAT registered for and provide step by step assistance to ensure your correct documents are submitted in a timely manner. We will communicate directly with the relevant Tax Authorities on your behalf and notify you of your VAT Number via our online Portal once received.
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Depending on the nature of your business and the countries that you are selling your products and services, you should be registered for a VAT number in one or more countries. The requirements change if your company is based within or outside the EU and it also depends upon the EU selling threshold. Apart from this, you are required to be VAT register in all the countries where you are storing goods.
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Registration times differ depending on the country of interest and if your company is within the EU or not. This process can take from 1 to 10 weeks. Our company guarantees that your application will be sent as soon as possible along with all the necessary documents to the local authorities responsible for the registration. As mentioned the time of processing the documents is different for each country. You can contact our experts in order to have a consultation for your business and get to know the registration timeframe for your specific situation.
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This depends on which country you are registered in. Some countries will ask for VAT returns each month, others – quarterly or even bi-monthly. At GVC we will ensure you never miss a deadline using Mytaxfow, a state-of-the-art cloud portal that we use to communicate with our customers and can be tailored to your specific needs.
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VAT registration prices differ depending on the type of business, the country of interest and if your company is within the EU or not. Please contact us for a quote.
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In order to switch to GVC from your current VAT provider you will need to authorize GVC as your new VAT agent in that country. This is done by providing us with a signed Power of Attorney document that we can then in turn show the Tax authorities in the country of interest.
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VAT stands for Value Added Tax and it is a consumption tax applied to the purchase price of goods and services. GST stands for Goods and Services Tax and it is a consumption tax that is imposed upon the cost of goods and services. Both GST and VAT are taxes that share the same characteristics but have different names.
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VAT charges a percentage at the sales price at every level of production of a good or service with deduction of the VAT remitted in the previous stage, (eliminating double taxation)
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You can find all the VAT and GST rates as well as distance selling thresholds in our dedicated VAT rate page. VAT rates change frequently and are affected by government policies and directives as well as other events such as COVID19.
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A fiscal representative is a tax registered company who will act in your behalf taking care of your administrative obligations, managing VAT affairs while dealing with the tax authorities. It enables non-EU companies to trade in countries where Fiscal Representation is mandatory and where it is not, it allow both EU and non-EU companies to benefit from VAT and cash flow advantages where possible.
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Distance selling is when companies sell their goods online to consumers across EU borders. In order to encourage companies to start trading all across Europe the distance selling thresholds were created. This means that if a company is selling below a specific amount in terms of turnover then they do not have the obligation to register for VAT in that country.
As of July 1st 2021, the new EU VAT rules have set a new unified distance selling threshold of EUR10.000 for all EU countries.
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The mini One Stop Shop came into force on 1 January 2015 and allows taxable persons supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable persons in Member States in which they do not have an establishment to account for the VAT due on those supplies via a web-portal in the Member State in which they are identified.
The new One Stop-Shop established in July 2021 is the evolution of the Mini One Stop-Shop and also covers the sales of B2C goods between EU member states, this way simplifying VAT Compliance for online sellers and electronic marketplaces.
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Intrastat is the system for collecting information and producing statistics on the trade in goods between countries of the European Union.
The Intrastat reporting is a monthly obligation for those companies moving goods across the EU which surpass those countries reporting thresholds.
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An EORI (Economic Operators Registration and Identification ) number is a European Union registration and identification number for businesses which undertake the import or export of goods into or out of the EU.
Any business or individual established in the EU (an economic operator) needs to obtain an EORI number from their national customs authority before commencing customs activities in the EU.
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The principle of the Reverse Charge Mechanism is that it shifts the liability to account for the VAT on a supply from the supplier to the buyer of a good or service. The main purpose is to avoid the need for the supplier to VAT register and account for VAT in a Member State in which he is not established.
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At GVC we are knowledgeable in every aspect of VAT Services. We represent some of the biggest global companies worldwide and you can be sure that you will receive quality services with all the latest up to date information.
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We are now able to provide our services to over 60 countries worldwide. Our head office is currently in The Hague / The Netherlands and our company has entities and certified partners all around the world.
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Global VAT Compliance is an independant specialized VAT company whose sole purpose is to make sure international businesses are VAT compliant in all required tax jurisdictions. Our “all-inclusive” approach in combination with mytaxflow®, our state-of-the-art cloud-based workflow system and our specialized professionals
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Our GVC head office is located in Den Haag / The Netherlands. Our office hours are from 9:30 to 5:30 (UTC/GMT +1) Monday to Friday.
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If you need to send us the original documents you can send it to our head office address at: Global VAT Compliance B.V, Loire 192 2491AM, The Hague, The Netherlands
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Mytaxflow is an easy to use state of the art portal that GVC uses in order to provide its customers with the best tailor made services and manage all VAT compliance obligations worldwide. Mytaxflow is designed to deal with all your VAT filing, uploading of information, monitoring progress and approving returns.
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Travel & Entertainment: You can claim a VAT refund on travel and entertainment expenses such as hotels, restaurants and transport when you are on the move for business.
DDP – Import VAT: Recover Import VAT when shipping equipment DDP (Delivered Duty Paid) to foreign countries.
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Companies doing business abroad often incur foreign VAT on their expenses such as employee travel and lodging, car rental and transportation and other business related expenses. Companies with employees who travel abroad. Multinational companies with intercompany costs and/or branches in several international locations.
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By filling for a VAT refund you can recover up to 27% of foreign supplier invoices and foreign travel and entertainment expenses that are connected to company business trips.
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Did your campaign fund your Video Game, ePublishing Media project or any other Digital Service and you now need to deliver that service to campaign backers? Global VAT Compliance can assess your need to be VAT compliant in the EU or other countries around the world who apply VAT to all digital services provided remotely.
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If you are fulfilling your orders to your European campaign backers from an EU warehouse, then you will need to be VAT registered in the country where the warehouse is located.
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