May 16, 2022

VAT in the Digital EU and the Deemed Supplier Obligations

As the public consultation of VAT in the Digital Age has come to an end, some changes regarding the full liability model for flatforms and the deemed supplier obligation remain unclear to the public. Below, you will find our explanations of changes and challenges from 2025.

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May 9, 2022

Influencers and Accounting. When to Pay VAT and Other Taxes?

More and more people call their career path influencing or digital content creation. These people focus on building an active social media presence and large follower base generated by sharing original content and taking part in brand sponsorship campaigns. You can find examples of such content creators in almost every niche, from food to automobiles or DIY crafts.

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May 4, 2022

Customs and VAT Relief on Temporary Imports in the UK

As the UK has left the EU Customs Union and the VAT system, companies moving between the UK and the EU can apply to have import VAT and customs duties delayed in cases of temporary imports. Imports are considered temporary when goods are brought into the country for processing or repairs and then sent away from the country (onward supply). This is called the Inward Processing Relief (IPR).

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April 25, 2022

Here‘s How to Find Amazon Fulfillment Centers: FBA Warehouses Locator

If you are familiar with the term “sales tax nexus”, you probably know that marketplace sellers in the Fulfillment by Amazon Program (FBA) for a nexus in the state where their inventory is stored. Nexus, in other words, is a strong tie with the state that makes registering at the state’s local tax authority mandatory.

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April 21, 2022

Amazon FBA warehouses in Europe

Amazon in Europe has warehouses located in 7 countries. It allows to decrease the amount of time in which the goods are delivered to final consumers. Usually, it is Amazon Prime product. For those retailers who use Amazon FBA instead of Amazon FBM it greatly facilitates their work.

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April 19, 2022

VAT for Dropshippers in 2022: Everything You Must Know

Dropshipping has become a widespread method of running a retail business in recent years. Its benefits are clear: very little initial investment is needed, no storage facility is required, and an almost endless array of items can be sold this way. However, VAT accounting for dropshippers is often more complex than traditional retailers. Please learn 1StopVAT’s article and learn how to navigate the taxes for your dropshipping business.

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April 11, 2022

Liberia to Join the VAT Regime

Liberia’s government has started the procedures necessary to join the Value Added Tax regime.

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April 5, 2022

Refund of VAT on Amazon FBA

The word has it that Amazon has started refunding sellers for VAT charged on Amazon Selling and FBA fees. Even though Amazon does not widely communicate this, the returns can reach several thousand euros.

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November 8, 2021

Polish Government have introduced mandatory electronic invoicing as of 2023

Recently Poland parliament has approved an amendment to the Value Added Tax law. This recent amendment requires resident and foreign companies doing business in Poland to replace all invoices with electronic ones until 31 December 2022.

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October 21, 2021

Philippines VAT Regime on Digital Services Remains Postponed

The Philippines have announced that they will impose a 12% VAT on foreign digital services and goods that are sold B2C. This new VAT regime hasn`t been implemented yet and won’t be in the nearest future.

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October 15, 2021

Lithuanian taxpayers affected by the pandemic have concluded an interestfree tax–loans for 685 million euros

The Lithuanian State Tax Inspectorate (STI) has announced that over 39,000 taxpayers who have been included in the affected-by-COVID-19 list have already concluded more than 14,000 interest free tax– loan agreements with STI.

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October 1, 2021

Russia changes the application of the VAT reverse charge mechanism

From the 1st of October 2021, the Russian Tax Code will be modified for cases where the VAT tax agent mechanism might be applied. This mechanism is also known as VAT reverse charge.

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September 23, 2021

West Virginia changed taxes on streaming services

West Virginia, a member of the SDR, is required to file a tax matrix each year. The West Virginia Tax Department changed the response and added two comments that affect the taxation of broadcast services.

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September 10, 2021

Lithuania State Tax Inspectorate recently announced updates related to Brexit

Lithuania STI announced that by 2021 November 3rd, all United Kingdom companies with a Lithuanian VAT code that are not residents in Lithuania should have to appoint a fiscal agent and fulfill all VAT obligations through a fiscal agent.

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August 30, 2021

Peloton has received a lawsuit alleging improperly taxed sales tax

Lately Peloton subscribers have filed a proposed class-action lawsuit accusing the maker of improperly charging sales tax on memberships in New York, Virginia and Massachusetts.

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Ukrainian parliament has introduced new VAT regulations for non-resident e-commerce

On 3rd of June 2021  Ukrainian parliament has introduced new value-added tax (VAT) regulations for non-resident e-commerce businesses that will take effect from 1st of January 2022.  

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June 28, 2021

The obligation to register for VAT: 6 common mistakes

Value added tax is applied for most goods and services in Lithuania. There are two ways how legal entities or sole proprietors can register for VAT purposes.

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June 15, 2021

Customs: changes for consignments sent from third countries from July 1 2021 in Lithuania

As of July 1, 2021, import VAT exemption for goods with a value under 22 EUR will be abolished. All consignments sent from third countries to Lithuania will be subject to Lithuanian import VAT. Due to these changes, sellers or buyers of the goods will be required to declare even the cheapest products by submitting electronic customs declarations and pay the import VAT at the Lithuanian border.

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May 20, 2021

A guide to Zalando marketplace for fashion retailers

Our guide on what you need to know before start selling on one of the most popular fashion marketplaces in Europe Zalando.

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May 10, 2021

UAE- Application Of VAT To Supplies And Services Provided By Artists And Influencers

The United Arab Emirates (UAE) Tax Office confirmed on March 7, 2021, that suppliers and services provided for remuneration by artists and influencers are now subject to VAT in the United Arab Emirates.

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April 29, 2021

How to apply for non-residents’ VAT registration in Oman?

As of 16th of April 2021, any business which will reach a mandatory threshold of 38.500,00 OMR per the rolling preceding 12 months period or any non-resident company facilitating sales to Oman will be required to register for VAT in Oman.

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April 1, 2021

Cross-border VAT e-commerce is being modernised in the EU

As of today, EU Member States opens voluntary registration on One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS) portals. Therefore, let’s check one more time what is changing from 1 July 2021.

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March 29, 2021

Hungary is required to report B2C directly from 1st of April

On 1 July 2018 Hungary has introduced real-time, electronic reporting (RTIR) for domestic B2B sales invoice data. From April 1, 2021, RTIR is extended and include B2C invoices as well.

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March 25, 2021

New tax on the sale and use of digital goods in Maryland

From 14th of March 2021, a 6% tax on the sale and use of digital goods will apply for digital products according to new Maryland law.

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January 26, 2021

Germany VAT highlights in 2021

Back to 19% and 7% as of January 1, 2021; Brexit - Expiry of the transitional period on December 31, 2020; MOSS transforms into OSS as from July 1, 2021; News for distance sellers as of July 1, 2021

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January 7, 2021

Will a fiscal VAT representative be required after BREXIT?

As the United Kingdom left the EU do e-commerce sellers or B2B supply chain operators need approved VAT representatives?

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December 10, 2020

Amazon VAT policy on Lost FBA inventory

If You enter the phrase „My VAT is missing on my Amazon FBA return/reimbursement“ into Google search engine You will find that this is a common issue among Amazon FBA sellers who enrolled themselves into Amazon VAT Calculation Services.

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December 7, 2020

Selling to Canada? Here‘s What You Must Know About Changes In Country‘s Digital Sales Taxation

In 2021, the Canadian Government will change the taxation policies of digital services provided in the country by foreign entities.

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November 30, 2020

End of Brexit Transition: 6 Main Changes for International Sellers

If you own a business in the UK and sell your goods or services internationally, the upcoming conclusion of the Brexit transition period will likely affect your operations. To assist you in preparing for the changes that will take place on January 1, 2021, 1StopVAT team has created a checklist of essential action items for sellers in the UK.

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November 25, 2020

Not Everything Is About The Business

As a socially responsible company, we are proud to not only promote living sustainable life, but also working with environment-friendly brands.

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November 20, 2020

European VAT and US sales tax rules - black Friday and Cyber Monday sales in 2020

2020 has already been a hit for e-commerce retailers, as Black Friday and Cyber Monday sales are right around the corner here is everything you need to know as an online retailer.

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November 12, 2020

California is tackling Amazon FBA sellers for Franchise Tax

California’s Franchise Tax Board (“CFTB”) has started a battle for income tax with Amazon sellers who makes use of the Amazon FBA program.

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November 10, 2020

Action Required: Last Weeks of VAT MOSS Platform for Digital Businesses In the UK

As of 1 January 2021, suppliers of digital goods and services based in the UK will lose access to the full scope of the VAT MOSS system. Mini One-Stop-Shop (MOSS) is a platform that allows European digital entrepreneurs to use a single point solution for dealing with VAT submission in every member state of the EU.

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November 9, 2020

Brexit: What you need to know as Amazon Merchant?

Only a couple of months till Brexit. From January 31st 2021 UK is leaving ES, so it means the UK will be hold as a third party country, e.g. all of the services and goods that are sold from the EU to the UK will be handled different.

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October 21, 2020

Lithuania removes restrictions on the VAT refundable amount over time

Recently a law amendment, that was pending for a long time, has been finally adopted. The law amendment removed restrictions on the amount of VAT refundable over time. This provision of law will take effect from 1 January 2021.

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September 2, 2020

Two years after South Dakota v. Waifair, Inc.

On June 21, 2018 US Supreme Court released its decision in South Dakota v. Wayfair, Inc. case in which the Court ruled that South Dakota may charge sales tax from distance sellers making sales to South Dakota even if these distance sellers doesn’t have a physical presence in the state, but meets one of the following criteria (the so called “economic nexus”): Distance seller’s gross revenue (including taxable and nontaxable sales) from sales into South Dakota exceeds $100,000; or Distance seller made 200 or more separate sales (digital products and/or digital services transferred electronically) into South Dakota.

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August 25, 2020

VAT challenges versus opportunities for Amazon retailers in Sweden Inc started its business in Sweden and plans to establish a local presence here. What does it mean for the remote sellers? For EU and non-EU sellers who might use fulfillment centers in Sweden, it means the obligation to register as VAT payers in Sweden, for non-EU sellers it will be much more complicated - the fiscal representative will be a must. Will these news lead non-EU companies to think about the local establishments in the EU? Moreover, are the remote sellers already evaluated not only their new flow of buyers but also the forthcoming obligation for VAT compliance?

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July 24, 2020

VAT rate changes in Ireland

Ireland has recently announced a temporary Value Added Tax rate cut from 23% to 21%. The measure will come into place on September 1st 2020 until 28th of February 2021. The decision was made due to economic struggles in country that related with COVI-19 pandemic situation.

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July 21, 2020

New Louisiana’s Economic Nexus Law

Louisiana‘s economic nexus bill is effective since 2020 1st of July. The requirements for foreign company without a physical presence are to register collected and remitted sales tax if they are over $100,000 in sales or products that were transferred electronically or other services that has over 200 separate transactions.

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July 16, 2020

VAT on Items Sold on Etsy

Not all Etsy sellers know that they might be responsible for the Etsy VAT compliance of their sales made on the platform. When collecting seller fees, Etsy automatically charges and remits Etsy fees VAT at checkout. However, sellers need to collect VAT on Etsy sales on their sold items. It is their responsibility to include the applicable VAT amount in their listings on Etsy so that their customers could evaluate the final Etsy VAT included prices.

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July 10, 2020

UK forces marketplaces to tackle VAT fraud

In 2018 HMRC has signed an agreement with Amazon and eBay on voluntary disclosure of VAT evasion by distance sellers, giving HMRC access to all distance sellers transaction data. There were rumors that after analyzing those transactions HMRC even started to seize stock, belonging to non-compliant distance sellers, from Amazon.

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June 26, 2020

New Regulation VAT Compliance for Online Marketplaces in Italy

Italy lost €33.5 million in 2017 over tax evasion. A survey by the Bank of Italy shows that self-employed, younger, and less educated citizens have a higher likelihood to evade paying taxes. Deliberate or accidental omission of daily remote transactions by marketplace operators also contributes to the immense VAT gap. This means there is a large difference between the expected tax and that which is collected.

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June 23, 2020

Low-value goods to be taxed soon

Depending on a country’s threshold, big E-Commerce companies like eBay and Amazon could ship low-value goods across several borders without having to collect taxes on them.

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June 19, 2020

Tax avoidance in E-Commerce leads to banks becoming collectors

Such platforms as Netflix and Amazon have billions of untaxed revenue flowing daily through their systems and tax authorities are looking into ways to seize them.

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June 15, 2020

Selling on Etsy: VAT Submission Guideline

Etsy is a popular online marketplace that facilitates buying and selling various unique products, such as tailored arts and crafts for people worldwide. However, shop owners are sometimes puzzled by tax regulation when sales are made using the platform.

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June 12, 2020

New VAT rates in Germany as of 1 July 2020

After long negotiations Germany government has approved the decision to reduce VAT rate in order to stimulate economy.

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May 11, 2020

USA Economic Nexus

On June 21, 2018, the Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. case. The decision allows states to tax remote sales and changes how companies must view sales tax nexus and when they have a sales tax exposure.

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May 4, 2020

The surge of digital services: VAT compliance needs extra care

With the Coronavirus outbreak forcing countries around the globe to quarantine their citizens at home, people are naturally turning to digital entertainment to pass the time or online platforms to facilitate work from home. Tech companies have started to note that this has led to a significant rise in the usage of certain online services. But with new users popping up in various countries and purchasing specific services, businesses now have to be extra wary of global VAT compliance as many countries tax digital goods sold to their citizens.

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April 23, 2020

Determining VAT: mistakes to avoid

Companies selling digital products and services must comply with the VAT destination principle in different countries. Each of them has different tax rules, thresholds, services, and means of payment, registering and filing the correct VAT amount is very complex. Thus, many companies make mistakes.

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April 15, 2020

New Amazon marketplace in the Netherlands: VAT changes

Amazon is further expanding its business and has recently announced that it will be opening a new marketplace in the Netherlands.

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April 9, 2020

A Guide to Nordic VAT Compliance

The Nordic Region is one of the largest economies in Europe. Combined, this region has a population of 25 million people and they are very receptive to digital products.

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April 1, 2020

EC Sales List (ESL) Changes: Things You Need to Know

An EU-wide tax reform called Quick Fixes 2020 was introduced at the beginning of the year and a big part of it concerns call-off stock.

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March 27, 2020

COVID-19 Threat: VAT Measures Introduced Around the World

The COVID-19 virus is disturbing the daily lives of many and people are taking pre-emptive measures to help minimize the threat. To avoid contracting the virus, many must stay and work from home, if possible. This, for better or for worse, is impacting businesses around the globe. While some are growing in these rough times, many more are struggling to stay open. As the pandemic is affecting various economies, countries are now opting for emergency tax incentives to help support their businesses. New measures are applied VAT registration to ensure that those affected could still operate as usual as possible.

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March 4, 2020

The Basics of VAT

The consumption tax is assessed and placed on every product also known as Value Added Tax, or VAT.

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March 2, 2020

Selling on Amazon in Europe: What are Your Options

When it comes to running your business and selling goods on Amazon, one must decide how their products will reach the customers.

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February 27, 2020

June of 2020: Mexico’s Digital Taxation

On the 11th of February 2020, Mexico’s Congress approved a bill that will impose Value Added Tax (VAT) on all digital services supplied by foreign businesses.

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February 26, 2020

IQ.The Economist shares our insights about One Stop Shop (OSS).

2021 will start with new OSS system in Europe. New regulations will effect e-commerce platforms, distance sellers and importers of low value goods.

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February 24, 2020

VAT on low value imported goods to Norway – Important changes from 1 April 2020

As of 1 April 2020, Norway will introduce a simplified VAT regime for sellers and intermediaries. Online marketplaces will be liable for VAT on cross-border sales of low value goods to consumers in Norway (B2C sales).

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February 21, 2020

British Colombia Introduces Provincial Sales Tax

This week (February 18, 2020) the British Colombia government announced planned changes that should be effective since July 1, 2020 to the PST (Provincial sales tax) laws. Government proposed changes to PST registration and collection requirements that will be applicable not only for Canadian but also to foreign businesses, providing software and telecommunication services in the province as well.

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February 21, 2020

VAT on digital sales in Ukraine

Ukraine‘s parliament is considering to draft law according to which non-residents that provide electronic services to Ukrainian residents (B2C sales) will be obliged to register for and collect VAT if such taxable sales of electronic services exceeds UAH 1 million per year.

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February 5, 2020

MOSS turning into a OSS

Since 2015, a simplified Mini One Stop Shop (MOSS) system is in place to declare and pay VAT on business-to-consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services in the EU. Following 2021, scope of MOSS will be extended turning it into a One Stop Shop (OSS)

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Tax audits in Turkey

Turkey’s Inspection Board of Ministry of Treasury and Finance has initiated a wave of tax audits of nonresident taxpayers engaged in the digital economy by sending an official audit letters to multiple nonresident taxpayers. These letters states that VAT and corporate income tax liabilities of nonresident taxpayers engaged in the digital economy will be audited for the 2015 – 2018 period. This is a concerning situation as tax auditors can retrospectively audit corporate income tax and VAT liabilities of nonresident taxpayers in Turkey.

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September 5, 2019

Most Common Myths About VAT

In this our insight we would like to overview the most common myths about VAT.

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August 23, 2019