# Tax compliance is challenging. Leave it to us! - 1stopVAT > Empower businesses to thrive and contribute to a better future with 1stopVAT --- ## Pages - [Expert support for indirect tax compliance](https://1stopvat.com/expert-support-for-indirect-tax-compliance/): Trusted by Automated efficiency, human expertise We combine the power of automation with the precision of human expertise to deliver... - [Indirect Tax Compliance for Digital Health Brands](https://1stopvat.com/indirect-tax-compliance-for-digital-health-brands/): Protect your growth. Power your expansion. We handle the tax. 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Nutzen Sie nahtlose, globale Steuerlösungen mit der Sicherheit, die Ihr Unternehmen verdient. - [Simplifiez la gestion de la TVA avec des solutions globales adaptées](https://1stopvat.com/simplifiez-la-gestion-de-la-tva-avec-des-solutions-globales-adaptees/): Demandez dès aujourd’hui votre consultation gratuite sur la TVA et commencez à gérer votre TVA en toute simplicité. - [Soluciones globales de declaración del IVA que potencian tu negocio](https://1stopvat.com/soluciones-globales-de-declaracion-del-iva-que-potencian-tu-negocio/): En 1stopVAT, facilitamos la declaración del IVA para que puedas centrarte en hacer crecer tu empresa. Te contamos cómo podemos ayudarte. - [https://x.com/1stopvat](https://1stopvat.com/https-x-com-1stopvat/): - [VDA Services](https://1stopvat.com/vda-services/): Learn about Voluntary Disclosure Agreements in the US and how they can benefit your business. 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Discover partnership opportunities now! - [Subscribe](https://1stopvat.com/subscribe/): - [CBAM Services](https://1stopvat.com/cbam-services/): In a world actively combating climate change, the European Union's Carbon Border Adjustment Mechanism (CBAM) represents a crucial change in... - [EPR Services](https://1stopvat.com/epr-services/): At 1stopVAT, we understand the growing need for businesses to take responsibility for the environmental impact of their products. Our... - [E-invoicing](https://1stopvat.com/e-invoicing/): When we read about digital reporting requirements or the transformation of business processes regarding invoicing life-cycle, we often encounter the... - [Let's simplify your taxes together!](https://1stopvat.com/lets-simplify-your-taxes-together/): Ready to streamline your VAT compliance? Connect with our experts and get free consultation. 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Your single point of contact for VAT registrations, filing and tax compliance advisory services --- --- ## Posts - [Taiwan - VAT Registration Threshold Increased for Foreign Providers of Digital Services ](https://1stopvat.com/taiwan-vat-registration-threshold-increased-for-foreign-providers-of-digital-services/): Explore Taiwan's updated business tax for non-resident digital services, including a higher registration threshold and key compliance rules. - [Canada - Cross-Border B2C Supply of Digital Services ](https://1stopvat.com/canada-cross-border-b2c-supply-of-digital-services/): Learn Canada's cross-border B2C digital service rules, including GST registration, compliance, and tax duties for non-resident providers. - [Japan - Cross-border Supplies of Electronic Services: Specifics B2C and B2B transactions](https://1stopvat.com/japan-cross-border-supplies-of-electronic-services-specifics-b2c-and-b2b-transactions/): Explore the latest changes to Japan's Consumption Tax Act (JCT) and what they mean for foreign providers of cross-border digital services. - [Italy - Revenue Agency vs US BIG tech](https://1stopvat.com/italy-revenue-agency-vs-us-big-tech/): Unpack Italy’s bold VAT claims against Meta and LinkedIn, and see how this dispute could reshape digital service taxation across the EU. - [Amazon - Success Story of an E-commerce Leader in 2025](https://1stopvat.com/amazon-success-story-of-an-e-commerce-leader-in-2025/): Discover Amazon's business empire - its e-commerce dominance, diverse revenue streams, and global market challenges. - [EU - Place of Supply Rules for Intra-EU Distance Supplies](https://1stopvat.com/eu-place-of-supply-rules-for-intra-eu-distance-supplies/): Learn about the updated Place of Supply Rules for Intra-EU Distance Supplies and how the destination-based tax principle applies to eCommerce. - [US – Key Sales Tax Changes for 2025](https://1stopvat.com/us-key-sales-tax-changes-for-2025/): Learn about key US sales tax changes for 2025, including updates on economic nexus, retail delivery fees, digital services, and new tax rates. - [Dominican Republic - VAT on Foreign Digital Platforms 2025](https://1stopvat.com/dominican-republic-vat-on-foreign-digital-platforms-2025/): Explore the Dominican Republic's digital economy, VAT changes for foreign service providers, and key compliance updates. - [Germany - TikTok Launches its TikTok Shop and Prepares the Roll-Out of the FBT Service](https://1stopvat.com/germany-tiktok-launches-its-tiktok-shop-and-prepares-the-roll-out-of-the-fbt-service/): Discover how TikTok is reshaping e-commerce in Germany with TikTok Shop and the upcoming FBT service for sellers. - [EU - Council Adopts Reconciled Version of the VAT in the Digital Age ](https://1stopvat.com/eu-council-adopts-reconciled-version-of-the-vat-in-the-digital-age/): The EU Council's adoption of the VAT in the Digital Age package transforms VAT regulations, enhancing compliance in the digital economy. - [US - What is the Future of Digital Services Tax and BEPS Rules](https://1stopvat.com/us-what-is-the-future-of-digital-services-tax-and-beps-rules/): Delve into the future of US policy on Digital Services Tax and BEPS rules.Explore the OECD tax deal and its impact on American tech companies. - [US - Announced increase of the EU import tariffs](https://1stopvat.com/us-announced-increase-of-the-eu-import-tariffs/): President Trump proposes 25% tariffs on EU imports - find out how this could impact the economy and consumers. - [Niger - VAT on Digital Services From 2025](https://1stopvat.com/niger-vat-on-digital-services-from-2025/): Niger introduces a 19% VAT on digital services in 2025, affecting local and foreign providers in e-commerce and streaming. - [Philippines - Cross-Border VAT Regime for Non-Resident Digital Services Providers](https://1stopvat.com/philippines-cross-border-vat-regime-for-non-resident-digital-services-providers/): Explore the Philippines' VAT on digital services, effective February 1, 2025, with key compliance guidelines for local and foreign providers. - [EU - Digital Reporting Regime after Parliament Approves Draft Legislation ViDA 2025](https://1stopvat.com/eu-digital-reporting-regime-after-parliament-approves-draft-legislation-vida-2025/): Discover the ViDA 2025 reform, enhancing digital VAT reporting and streamlining compliance for businesses in the EU. - [Burkina Faso - VAT Rules for E-commerce Marketplaces 2025](https://1stopvat.com/burkina-faso-vat-rules-for-e-commerce-marketplaces-2025/): Burkina Faso's 2025 VAT rules target foreign e-commerce providers, ensuring transparency and compliance in the growing digital market. - [Italy - New Rules for Reporting of Digital Services Tax 2025](https://1stopvat.com/italy-new-rules-for-reporting-of-digital-services-tax-2025/): Italy's 2025 digital services tax updates remove subjective criteria, making liability turnover-based, with a new two-step payment system. - [China - New VAT Law and Modernization of VAT system](https://1stopvat.com/china-new-vat-law-and-modernization-of-vat-system/): Uncover the details of China's new VAT Law, effective January 1, 2026, designed to streamline tax collection and align with global standards. - [EU - VAT Reporting for Live Virtual Events 2025](https://1stopvat.com/eu-vat-reporting-for-live-virtual-events-2025/): Starting January 1, 2025, EU Directive 2022/542 introduces destination-based VAT rules for live virtual events. - [Digital Platforms Tax Compliance Mexico](https://1stopvat.com/digital-platforms-tax-compliance-mexico/): Explore Mexico's digital platform tax rules. Learn about VAT, income tax obligations, and the latest 2025 updates for e-commerce providers. - [Liechtenstein - Deemed Supplier Rules for Electronic Platforms](https://1stopvat.com/liechtenstein-deemed-supplier-rules-for-electronic-platforms/): Discover Liechtenstein's new VAT rules for electronic platforms, effective January 1, 2025, with key tax responsibilities for businesses. - [Guinea-Bissau - Introduction of the VAT regime](https://1stopvat.com/guinea-bissau-introduction-of-the-vat-regime/): Discover the evolving VAT landscape in Guinea-Bissau, as the country transitions from IGV to a modern VAT regime starting January 1, 2025. - [Sri Lanka - VAT for Non-Resident Providers of Digital Services from 2025](https://1stopvat.com/sri-lanka-vat-for-non-resident-providers-of-digital-services-from-2025-2/): Sri Lanka's 2025 tax reforms introduce VAT on foreign digital services, ensuring fair competition and aligning with global standards. - [EU - Reform of SME Schemes and Simplified VAT Compliance](https://1stopvat.com/eu-reform-of-sme-schemes-and-simplified-vat-compliance/): Explore the EU's 2025 cross-border SME scheme, simplifying VAT rules and exemptions for small businesses operating in multiple Member States. - [Switzerland - Taxation of the E-Commerce Marketplaces 2025](https://1stopvat.com/switzerland-taxation-of-the-e-commerce-marketplaces-2025/): Stay updated on Switzerland's 2025 e-commerce tax reforms and learn how new VAT rules promote fair competition for local businesses. - [EU - Simplified Reporting Under Domestic and Cross-Border SME Scheme](https://1stopvat.com/eu-simplified-reporting-under-domestic-and-cross-border-sme-scheme/): Discover the EU’s new simplified reporting measures for SMEs, including the domestic and cross-border SME schemes, effective January 2025. - [Global - Important VAT Changes 2025](https://1stopvat.com/global-important-vat-changes-2025/): Explore key global VAT changes in 2025, featuring rate adjustments, digital service taxes, and new compliance rules. - [Poland’s transition to mandatory e-invoicing with KSeF](https://1stopvat.com/polands-transition-to-mandatory-e-invoicing-with-ksef/): Discover Poland's National e-Invoicing System (KSeF), its benefits, features, and how businesses can prepare for the transition. - [VAT Consulting for International Businesses ](https://1stopvat.com/vat-consulting-for-international-businesses/): Explore VAT consulting for international businesses to ensure compliance and streamline tax management across borders and digital economies. - [France - Increase of Digital Services Tax 2025](https://1stopvat.com/france-increase-of-digital-services-tax-2025/): Learn about France's Digital Services Tax and the proposed 5% increase, impacting major digital providers. - [EU - Guide to Simplified Triangulation Method for VAT Purposes](https://1stopvat.com/eu-guide-to-simplified-triangulation-method-for-vat-purposes/): Learn how the EU VAT simplified triangulation method reduces compliance burdens and simplifies trade for EU businesses - [Australia - Introduction of Digital Services Tax to Protect Traditional Media Outlets](https://1stopvat.com/australia-introduction-of-digital-services-tax-to-protect-traditional-media-outlets/): Delve into the Digital Services Tax proposal in Australia, inspired by models from France, Canada, and the UK. - [EU - Council Agrees on the VAT in the Digital Age Reform](https://1stopvat.com/eu-council-agrees-on-the-vat-in-the-digital-age-reform/): Find out how the new EU VAT reform will impact digital businesses and platforms, and how to get ready for the changes coming next year. - [Global - Guide to Voluntary Disclosure Agreements](https://1stopvat.com/global-guide-to-voluntary-disclosure-agreements/): See how Voluntary Disclosure Agreements (VDAs) help e-commerce businesses handle cross-border taxes, reduce penalties, and stay competitive. - [Ethiopia - Tax Liability for Foreign Providers of Digital Services](https://1stopvat.com/ethiopia-tax-liability-for-foreign-providers-of-digital-services/): Curious about Ethiopia’s VAT rules for digital services? See how changes can affect your business and the steps for smooth compliance. - [Global - Digital Marketplace as a Merchant of Record ](https://1stopvat.com/global-digital-marketplace-as-a-merchant-of-record/): Merchant of Record in digital marketplaces. Why it’s important in e-commerce and how it makes transactions smoother for online vendors. - [Peru - Foreign  Digital Providers Should Levy General Sales Tax From December 1, 2024 ](https://1stopvat.com/peru-foreign-digital-providers-should-levy-general-sales-tax-from-december-1-2024/): Peru's tax changes for foreign digital services. Understand Legislative Decree No. 1644 and prepare for the General Sales Tax requirements. - [Packaging EPR compliance in the EU ­– What retailers need to consider](https://1stopvat.com/packaging-epr-compliance-in-the-eu-what-retailers-need-to-consider/): Navigate the complexities of Extended Producer Responsibility (EPR) in Europe. Essential compliance strategies for packaging. - [US - Landmark Court Decision in Epic Games vs. Google  ](https://1stopvat.com/us-landmark-court-decision-in-epic-games-vs-google/): Epic Google Court Decision disrupts US app market, promoting fair competition with better commission rates and payment choices for developers. - [Philippines - President Signs the Law on Foreign Providers of Digital Services  ](https://1stopvat.com/philippines-president-signs-the-law-on-foreign-providers-of-digital-services/): Stay informed about the Philippines' new VAT law for foreign digital services—what changes and what they mean for consumers and providers. - [Slovakia - Significant Increase of the VAT Rates](https://1stopvat.com/slovakia-significant-increase-of-the-vat-rates/): Learn how these changes could affect household spending and the economy in 2025. - [Ireland - Sharing Economy and VAT Compliance (Uber case) ](https://1stopvat.com/ireland-sharing-economy-and-vat-compliance-uber-case/): Dive into the complexities of VAT compliance in Ireland's sharing economy with Uber. How this affects local taxi drivers and tax regulations. - [EU - New VAT Regulatory Framework for Suppliers of Live Virtual Events](https://1stopvat.com/eu-new-vat-regulatory-framework-for-suppliers-of-live-virtual-events/): Navigate EU VAT framework for live virtual events. Learn how new regulations affect ticket sales and tax obligations for online streaming. - [Romania - SAFT Reporting New Obligation for Foreign Sellers](https://1stopvat.com/romania-saft-reporting-new-obligation-for-foreign-sellers/): Find out how to prepare for the new Romania's SAF-T reporting rules for foreign vendors starting January 1, 2025 - [Global - Amazon VAT Services Program for Online Vendors is Ending](https://1stopvat.com/global-amazon-vat-services-program-for-online-vendors-is-ending/): The Amazon VAT Services Program for online vendors is ending. Learn how this change affects compliance and discover new service providers. - [Amazon - European Online Vendors and New Invoicing Rules](https://1stopvat.com/amazon-european-online-vendors-and-new-invoicing-rules/): Amazon changes impact online vendors across Europe. Learn about new invoicing rules and how to manage better expense recovery. - [Peru - VAT on Digital Services](https://1stopvat.com/peru-vat-on-digital-services/): Peru's VAT law now covers foreign digital service providers. Registration and compliance are mandatory, including periodic returns. - [Vermont - Introduction of Sales Tax Liability for SaaS ](https://1stopvat.com/vermont-introduction-of-sales-tax-liability-for-saas/): Vermont's Act 183 (H.887) impacts SaaS providers. Learn about the new sales tax liability for prewritten computer software accessed remotely. - [Philippines - Steps Towards Introduction of the VAT Liability for Non-Resident Digital Providers](https://1stopvat.com/philippines-steps-towards-introduction-of-the-vat-liability-for-non-resident-digital-providers/): Framework, timeline, and requirements for Philippines' legislative bill imposing VAT liability on foreign digital service providers. - [Tax Technology Tools - VAT Compliance Automation](https://1stopvat.com/tax-technology-tools-vat-compliance-automation/): Automate and streamline your tax obligations with advanced tools for real-time data analytics and seamless integration. - [Singapore - GST Registration for Overseas Vendors](https://1stopvat.com/singapore-gst-registration-for-overseas-vendors/): Learn about Singapore GST registration for overseas vendors, including requirements and processes. Expert guidance by 1stopVAT. - [US - Digital Platform TikTok and Sales Tax Compliance](https://1stopvat.com/us-digital-platform-tiktok-and-sales-tax-compliance/): TikTok Shop's e-commerce features and sales tax compliance. Learn about marketplace facilitator laws and tips for smooth tax reporting for US sellers. - [Finland - Increase of the VAT Rate and Tax Compliance](https://1stopvat.com/finland-increase-of-the-vat-rate-and-tax-compliance/): The Finnish Parliament adopted the government's proposal to amend the VAT Act and increase the general VAT rate. The Standard... - [US - Challenges for Remote Vendors](https://1stopvat.com/us-challenges-for-remote-vendors/): US post-Wayfair decision: economic nexus, state tax rules, digital product taxability, and marketplace compliance. - [Finland - The Proposal from the Ministry of Finance for Increase of the VAT Rate](https://1stopvat.com/finland-the-proposal-from-the-ministry-of-finance-for-increase-of-the-vat-rate/): The Finnish Government is looking for new ways to increase public revenue. The Ministry of Finance has presented amendments to... - [Slovakia - New Rules Concerning VAT Registration Thresholds](https://1stopvat.com/slovakia-new-rules-concerning-vat-registration-thresholds/): The EU legislative framework concerning special schemes for SMEs was significantly revised upon adopting the new regulations. The Slovakian authorities... - [Philippines - Senate Approves the Bill for Introduction of the VAT for Foreign Digital Service Providers ](https://1stopvat.com/philippines-senate-approves-the-bill-for-introduction-of-the-vat-for-foreign-digital-service-providers/): The Senate, the second legislative body of the Philippines parliament, has adopted Senate Bill No. 2528, which introduces the VAT... - [EU VAT Refund - Practical Guidelines](https://1stopvat.com/eu-vat-refund-practical-guidelines/): Taxable persons established within the EU have more than a few benefits when operating within the common market, and one... - [EU ViDA Reform - Estonian Ministry of Finance Temporarily Blocks the Agreement](https://1stopvat.com/eu-vida-reform-estonian-ministry-of-finance-temporarily-blocks-the-agreement/): Last week, the EU Economic and Financial Affairs Council(ECOFIN) convened to discuss the VAT in the Digital Age reform, a... - [Ukraine - Digital Platform PornHub and VAT Liability](https://1stopvat.com/ukraine-digital-platform-pornhub-and-vat-liability/): The Ukrainian regulators introduced a package of “E-Commerce” legislative changes to the Tax Code, in June 2021 to address the... - [Laos - Foreign Providers of Digital Services and VAT Compliance](https://1stopvat.com/laos-foreign-providers-of-digital-services-and-vat-compliance/): In our previous Article, we mentioned that the Ministry of Finance has adopted Instruction No. 558 issued by the Lao... - [Germany - Introduction of B2B Electronic Invoicing](https://1stopvat.com/germany-introduction-of-b2b-electronic-invoicing/): Last March, the Federal Council approved the Growth Opportunities Act, which, driven by the Government’s goal to enhance the quality... - [Senegal - Introduction of VAT Obligations for Foreign Digital Providers](https://1stopvat.com/senegal-introduction-of-vat-obligations-for-foreign-digital-providers/): The Government of Senegal, specifically the Minister of Finance and Budget, adopted a decree last November that made the provisions... - [Thailand - Foreign Digital Platforms and Import of Low-Value Goods](https://1stopvat.com/thailand-foreign-digital-platforms-and-import-of-low-value-goods/): The Ministry of Finance and the Revenue Department of Thailand are cooperating on the preparation of the draft law(amendments) to... - [New Measures for Non-Resident Providers of Digital Services in Laos](https://1stopvat.com/new-measures-for-non-resident-providers-of-digital-services-in-laos/): The Ministry of Finance of Laos has adopted new requirements for non-resident suppliers of digital goods and services to customers... - [Deemed Supplier Liability for Digital Platforms in New Zealand](https://1stopvat.com/deemed-supplier-liability-for-digital-platforms-in-new-zealand/): Last year, the New Zealand government enacted the Taxation Act 2023, which introduced significant changes concerning indirect taxation of the... - [Introduction of Deemed Supplier Liability for Foreign Digital Platforms in Japan](https://1stopvat.com/introduction-of-deemed-supplier-liability-for-foreign-digital-platforms-in-japan/): The Japanese main executive body has proposed significant changes in the submitted tax reform bill that would impact non-resident digital... - [Foreign Suppliers of Digital Products - Business and Occupation Tax Liability](https://1stopvat.com/foreign-suppliers-of-digital-products-business-and-occupation-tax-liability/): Some time ago, I came across one exciting and intriguing tax scenario regarding the supply of digital products to customers... - [Steps Towards the Introduction of VAT Liability for Foreign Providers of Digital Services in Sri Lanka](https://1stopvat.com/steps-towards-the-introduction-of-vat-liability-for-foreign-providers-of-digital-services-in-sri-lanka/): The New Year has brought many significant changes regarding indirect taxation in the country. The Government decided to introduce this... - [Global Trend - Electronic Invoicing and Digital Tax Reporting](https://1stopvat.com/global-trend-electronic-invoicing-and-digital-tax-reporting/): We are witnessing more and more countries implementing a digital tax reporting system. There are a few reasons countries globally... - [Introduction of Tax Liability for Non-Resident Suppliers of Digital Services in North Macedonia](https://1stopvat.com/introduction-of-tax-liability-for-non-resident-suppliers-of-digital-services-in-north-macedonia/): The amendments of the Law on Value Added Tax adopted in the last quarter of 2023 introduced the obligation for... - [Increase of Service Tax Rate and Effect on Foreign Service Providers in Malaysia](https://1stopvat.com/increase-of-service-tax-rate-and-effect-on-foreign-service-providers-in-malaysia/): Foreign digital service providers registered under the Service Tax Act must charge, collect, and remit Service Tax for providing digital... - [DAC 7 - Reporting Obligations for Digital Platforms](https://1stopvat.com/dac-7-reporting-obligations-for-digital-platforms/): Introduction The digital economy has rapidly grown in the last few years. The blossoming of the digital platform economy and... - [Introduction of New Rules for E-Commerce in Philippines](https://1stopvat.com/introduction-of-new-rules-for-e-commerce-in-philippines/): On December 5, 2023, the President of the Philippines signed the Internet Transactions Act 2023(ITA) into law, introducing many novelties... - [Introduction of Online VAT Declaration System in Hungary ](https://1stopvat.com/hungary-introduction-of-online-vat-declaration-system/): In the last months of 2023, the Hungarian National Tax and Customs Administration(NAV) worked on preparing the last pieces of... - [Latest Updates  E-Invoicing and E-Reporting in Romania](https://1stopvat.com/latest-updates-e-invoicing-and-e-reporting-in-romania/): The Romanian Government adopted Emergency Ordinance no. 115/2023, which introduced a few novelties concerning e-Invoicing for B2B transactions where the... - [One-Stop Shop Schemes - Brief Overview](https://1stopvat.com/one-stop-shop-schemes-brief-overview/): The European Union introduced the E-Commerce VAT (Digital VAT) package on July 1, 2021. The adoption of the new pieces... - [Update of the E-Invoicing and E-Reporting Timeline in France](https://1stopvat.com/update-of-the-e-invoicing-and-e-reporting-timeline-in-france/): The government’s newly adopted roadmap for introducing electronic invoicing and digital reporting for B2B transactions has encountered formidable challenges due... - [VAT rates Changes in Romania](https://1stopvat.com/vat-rates-changes-in-romania/): The Law on Fiscal Changes, published in the Official Gazette at the end of October 2023, has brought many significant... - [Proposal to Increase the Registration Threshold in Slovakia](https://1stopvat.com/proposal-to-increase-the-registration-threshold-in-slovakia/): The draft law amending the VAT Law has been submitted to the Parliament, in which, among other points, the provision... - [CESOP Framework - EU Cross-Border Payments Reporting and VAT Compliance](https://1stopvat.com/cesop-framework-eu-cross-border-payments-reporting-and-vat-compliance/): Introductory notes Almost four years have passed since the Council adopted a legislative package establishing a framework for requesting payment... - [Amazon - Challenges of VAT Compliance for Merchants and Suspension of Accounts](https://1stopvat.com/amazon-challenges-of-vat-compliance-for-merchants-and-suspension-of-accounts/): Digital Marketplaces  Establishing e-commerce digital marketplaces such as Amazon, Alibaba, eBay, and others has allowed businesses in the EU and... - [Global Overview - VAT Changes Starting from January 2024](https://1stopvat.com/global-overview-vat-changes-starting-from-january-2024/): As 2023 comes to an end, let’s take a brief but important tour of some of the most significant changes... - [Digital Platforms - Deemed Supplier Liabilities](https://1stopvat.com/digital-platforms-deemed-supplier-liabilities/): The European Union E-Commerce package introduced many significant changes to electronic commerce transactions. One of those novelties was the introduction... - [Mandatory B2B E-Invoicing and E-Reporting Roll-out in 2024 in Romania](https://1stopvat.com/mandatory-b2b-e-invoicing-and-e-reporting-roll-out-in-2024-in-romania/): The President of Romania has issued a Decree by which the previously implemented law for mandatory B2G e-invoicing has been... - [Non-Resident Digital Platform Operators VAT Liability in Ivory Coast](https://1stopvat.com/non-resident-digital-platform-operators-vat-liability-in-ivory-coast/): The government of Ivory Coast has dedicated a lot of time, effort, and willingness to shape the indirect tax regulations... - [Amazon - Deemed Supplier Liability and Blocked Merchants' Accounts](https://1stopvat.com/amazon-deemed-supplier-liability-and-blocked-merchants-accounts/): Amazon, a global e-commerce tech giant, has pulled a dragnet investigation into its European marketplaces. The US stronghold in the... - [First Steps Towards B2B E-Invoicing Mandate in Montenegro](https://1stopvat.com/first-steps-towards-b2b-e-invoicing-mandate-in-montenegro/): Representatives from the Ministry of Finance of Montenegro, alongside the Minister in the last week of October, held a roundtable... - [VAT in the Digital Age (ViDA) Single VAT Registration (IV)](https://1stopvat.com/vat-in-the-digital-age-vida-single-vat-registration-iv/): The E-Commerce package, which came into effect on July 1, 2021, was the last significant reform implemented by the EU... - [Possible Increase of VAT Rate in Kazakhstan](https://1stopvat.com/kazakhstan-possible-increase-of-vat-rate/): The Ministry of National Economy of Kazakhstan proposes gradually increasing the standard VAT rate. This significant change, presented through the... - [VAT in the Digital Age (ViDA) Platform Economy (III)](https://1stopvat.com/vat-in-the-digital-age-vida-platform-economy-iii/): The second pillar of the European Commission’s proposal for the VAT in the Digital Age is the one that is... - [Belgium Plan to Introduce E-Invoicing Mandate on B2B Transactions from 2026](https://1stopvat.com/belgium-plan-to-introduce-e-invoicing-mandate-on-b2b-transactions-from-2026/): The Belgium Council of Ministers has accepted the proposal - draft bill of the Minister of Finance regarding the introduction... - [VAT in Digital Age (ViDA) Digital Reporting Requirements (II)](https://1stopvat.com/vat-in-digital-age-vida-digital-reporting-requirements-ii/): We deeply explored VAT in the Digital Age reform in the first article from the ViDA series, published last week.... - [Romania Steps Towards Country-wide B2B E-invoicing](https://1stopvat.com/romania-steps-towards-country-wide-b2b-e-invoicing/): Just a bit less than two months after obtaining the favorable decision from the European Council, which gave Romania the... - [VAT in the Digital Age (ViDA) Introduction (I)](https://1stopvat.com/vat-in-the-digital-age-vida/): The representatives of the European Commission submitted last December official proposals to change pivotal VAT legislation as a necessary step... - [Introduction of E-Invoicing Mandate for B2B in Germany](https://1stopvat.com/germany-introduction-of-e-invoicing-mandate-for-b2b/): Looking at the magnitude of the German economy, the Government has been operating meticulously in the last few years, looking... - [Electronic Invoicing and Reporting in France](https://1stopvat.com/france-electronic-invoicing-and-reporting/): In the last years, we have witnessed a continuously enhancing rhythm of the implementation of e-invoicing and/or e-reporting mechanisms on... - [August Insight About E-invoicing in Romania](https://1stopvat.com/august-insight-about-e-invoicing-in-romania/): The Council of the European Union has taken a significant step in Romania by extending mandatory e-invoicing for B2B transactions.... - [Italian E-Invoicing system](https://1stopvat.com/italian-e-invoicing-system/): The Italian E-Invoicing system debuted on July 1, 2018, when the private companies which are acting as suppliers to Italian... - [Global trend – Steady Growth of VAT rates](https://1stopvat.com/global-trend-steady-growth-of-vat-rates/): What lies behind government politics to increase the VAT rates? It has been witnessed in the last few years and... --- # # Detailed Content ## Pages ### Expert support for indirect tax compliance - Published: 2025-05-07 - Modified: 2025-05-07 - URL: https://1stopvat.com/expert-support-for-indirect-tax-compliance/ Trusted by Automated efficiency, human expertise We combine the power of automation with the precision of human expertise to deliver seamless indirect tax compliance. This hybrid approach ensures speed, accuracy, and customized support, giving you the best of both worlds - efficiency and expertise. Message from our CCO, Donatas Stasytis Indirect Tax Compliance With our complete registration services, your business can be registered anywhere in the world, even where this process can be tricky and regulations vary. VAT registration, Sales tax compliance and filing, IOSS compliance, EORI registration service Cross-Border Tax Advisory Our experts guide you through international tax regulations, ensuring you meet the specific requirements of every jurisdiction, whether it’s VAT, sales tax, or digital taxes. VAT consulting, Sales tax consulting, Tax map Audit Prevention & Risk Mitigation We proactively identify potential tax risks and implement strategies to mitigate them. In cases of past discrepancies, we assist with corrective measures, helping you avoid penalties and costly audits as you scale. VDA services, ERP services, CBAM services Ongoing Tax Filing Support From VAT filings to sales tax reports, our team ensures you meet deadlines and handle the complexities of taxes across multiple countries, without adding strain to your internal resources. VAT compliance and filing, Sales tax compliance and filing, GST compliance and filing How it works? Tailored Tax Strategy We begin by assessing your business and understanding your global tax needs. Then, we craft a customized tax strategy to meet your goals and ensure compliance worldwide. Registration & Filing Our... --- ### Indirect Tax Compliance for Digital Health Brands - Published: 2025-04-29 - Modified: 2025-05-05 - URL: https://1stopvat.com/indirect-tax-compliance-for-digital-health-brands/ Protect your growth. Power your expansion. We handle the tax. For healthtech platforms, digital clinics, wellness subscriptions, and medtech apps - navigating global indirect taxes (VAT, GST, digital tax) is critical. 1stopVAT ensures your business stays compliant and audit-ready across 100+ countries so you can scale with peace of mind. Start your free consultation 85% of companies have experienced heightened complexity in compliance requirements over the past three years. This trend is particularly impactful for digital health businesses operating across multiple jurisdictions, where navigating varying VAT regulations and indirect tax obligations can be challenging. PwC’s Global Compliance Survey 2025 Our key services Indirect Tax Strategy & Compliance – We work closely with your team to develop tax strategies that align with your global business model. From registration to reporting, we ensure seamless compliance in every market you operate in. Cross-Border Tax Advisory – Our experts guide you through international tax regulations, ensuring you meet the specific requirements of every jurisdiction, whether it’s VAT, sales tax, or digital taxes. Audit Prevention & Risk Mitigation – We proactively identify potential tax risks and implement strategies to mitigate them. In cases of past discrepancies, we assist with corrective measures, helping you avoid penalties and costly audits as you scale. Ongoing Tax Filing Support – From VAT filings to sales tax reports, our team ensures you meet deadlines and handle the complexities of taxes across multiple countries, without adding strain to your internal resources. Tailored Tax Strategy We begin by assessing your business and understanding your global... --- ### Global Tax Compliance for Gaming Platforms & In-Game Sales - Published: 2025-04-24 - Modified: 2025-05-05 - URL: https://1stopvat.com/global-tax-compliance-for-gaming-platforms-in-game-sales/ Built for games, backed by experts Whether you’re selling in-game items, subscriptions, or running a player marketplace - indirect taxes like VAT, sales tax, and digital levies can get in the way of global growth. At 1stopVAT, we’re your hands-on partner in navigating complex tax regulations across 100+ countries. Start your free consultation 55% of global game software revenue in 2025 is expected to come from mobile platforms, making cross-border microtransactions and indirect tax compliance more critical than ever. Tax complexity and evolving digital regulations are no longer just legal issues - they’re growth blockers. MIDiA Research, 2025 Our key services Indirect Tax Strategy & Compliance – We work closely with your team to develop tax strategies that align with your global business model. From registration to reporting, we ensure seamless compliance in every market you operate in. Cross-Border Tax Advisory – Our experts guide you through international tax regulations, ensuring you meet the specific requirements of every jurisdiction, whether it’s VAT, sales tax, or digital taxes. Audit Prevention & Risk Mitigation – We proactively identify potential tax risks and implement strategies to mitigate them. In cases of past discrepancies, we assist with corrective measures, helping you avoid penalties and costly audits as you scale. Ongoing Tax Filing Support – From VAT filings to sales tax reports, our team ensures you meet deadlines and handle the complexities of taxes across multiple countries, without adding strain to your internal resources. Tailored Tax Strategy We begin by assessing your business and understanding your global tax... --- ### Expert Tax Guidance to Scale Your SaaS Business Globally - Published: 2025-04-16 - Modified: 2025-04-24 - URL: https://1stopvat.com/expert-tax-guidance-to-scale-your-saas-business-globally/ Expert tax guidance to scale your SaaS business globally For digital products, global reach is key - but so is compliance. At 1stopVAT, we make indirect tax compliance - VAT, sales tax, digital taxes - seamless across 100+ countries, ensuring your SaaS business stays compliant no matter where you sell. Start your free consultation 60% of SaaS businesses face delays due to tax complexity. VAT, sales tax, and digital taxes can be a barrier to global expansion. With constantly changing regulations, compliance mistakes can be costly.  PwC’s Global Reframing Tax Survey, 2025 Our key services Indirect Tax Strategy & Compliance – We work closely with your team to develop tax strategies that align with your global business model. From registration to reporting, we ensure seamless compliance in every market you operate in. Cross-Border Tax Advisory – Our experts guide you through international tax regulations, ensuring you meet the specific requirements of every jurisdiction, whether it’s VAT, sales tax, or digital taxes. Audit Prevention & Risk Mitigation – We proactively identify potential tax risks and implement strategies to mitigate them. In cases of past discrepancies, we assist with corrective measures, helping you avoid penalties and costly audits as you scale. Ongoing Tax Filing Support – From VAT filings to sales tax reports, our team ensures you meet deadlines and handle the complexities of taxes across multiple countries, without adding strain to your internal resources. Tailored Tax Strategy We begin by assessing your business and understanding your global tax needs. Then, we craft a customized... --- ### EORI Registration Service - Published: 2025-04-07 - Modified: 2025-04-07 - URL: https://1stopvat.com/eori-registration-service/ The introduction of the Economic Operators Registration Identification(EORI) concept by the EU Commission permits cross-border-oriented businesses to have fewer customs administration hurdles and a smoother delivery process. With EORI registration, your entire cross-border delivery of goods can be faster. Trusted by leading companies in the industry: Obtaining an EORI number for international shipping will reduce your compliance costs and, even more importantly, speed up your delivery process without unnecessary delays due to the extensive customs clearance process. Reduce your customs handling fees, get an EORI number for customs clearance. Free consultation We start with a call to understand your business setup, shipping flow, and where customs clearance could be optimized. EORI Registration Our experts handle the entire EORI registration process on your behalf. VAT Advisory Services We help you navigate EU VAT rules, ensuring your international sales stay compliant while avoiding unnecessary costs and delays. Did you know that you need only one valid EORI registration to speed up your customs clearance for the entire EU? An economic operator only needs one EORI number to make cross-border shipping less time-consuming, more efficient, and transparent. Registering for IOSS alongside the EORI registration is a great combination for taxable persons who are making their e-commerce sales in the EU. More about VAT Why us? Book a FREE consultation They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders,... --- ### Grow with 1stopVAT and Walmart Marketplace - Published: 2025-03-21 - Modified: 2025-03-27 - URL: https://1stopvat.com/grow-with-1stopvat-and-walmart-marketplace/ Sell Smart. Grow Fast. VAT Made Easy. Join Walmart Marketplace with 1stopVAT by your side Tap into one of the world’s biggest eCommerce platforms - without the tax headaches. We handle your VAT compliance so you can focus on making sales, not spreadsheets. Join Walmart Marketplace Exposure to 120M+ shoppers Skip the slow build - plug into a high-traffic marketplace where customers are already searching (and buying). * *Comscore, Feb 2022-Jan 2023 Get seen. Get clicked. Get chosen. With Walmart Connect, your products get premium visibility where it counts - right in front of high-intent shoppers. Logistics that don’t slow you down WFS helps you deliver fast, handle returns smoothly, and keep customers coming back - all without stretching your team. How it works Verify your business Submit your business details to complete your Seller Profile and get verified in as little as a few minutes. Set up payments Tell us where to send your payments with no setup, subscription, or monthly fees. *This will become available upon verification. Set up catalog Import your product catalog from an existing marketplace, andchoose the shipping method that works best for you. Get started today https://youtu. be/hcCuIqaBxgk? feature=shared With Walmart Marketplace we’ve grown 45% YoY... With the support of the Walmart team we’ve really been able to see good growth numbers. I personally believe that if you’re really in the eCommerce game Walmart is one of, if not your top destinations to continue to grow. Tobi Odunaiya, Founder and CEO of Luxe Weavers... --- ### Expert support for indirect tax compliance - Published: 2025-03-06 - Modified: 2025-03-26 - URL: https://1stopvat.com/tax-compliance-is-challenging-leave-it-to-us/ Trusted by When your business goes global it's crucial to comply with indirect tax regulations. Charging VAT, GST or Sales Tax during sales and paying it based on the customer's location can be complicated. We are here to simplify this process for you! More about taxes 1 VAT registration With our complete registration services, your business can be registered anywhere in the world, even where this process can be tricky and regulations vary. Read more 2 VAT filing Once your business obtains a VAT number in a country, it's important to file periodic VAT returns to remain compliant with local regulations. Our team can ensure on-time reporting and submissions. Read more 3 VAT consulting Have questions or concerns about VAT compliance? No problem! We're here to solve any issue, answer any question or back-up your business in any situation when it comes to taxes matters. Read more Why us? Working with 1stopVAT made things so much easier for us at Surfshark. They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency, reducing costs, and supporting our business expansion while ensuring compliance. Surfshark 1stopVAT delivered comprehensive VAT management services for us, expertly handling our compliance processes across multiple regions. They managed our VAT compliance with great care, recovering key registration details and ensuring we were fully covered. Their proactive approach saved us both time... --- ### IOSS Compliance > EU VAT compliance with IOSS. One registration covers VAT reporting for all 27 EU countries. Reduce costs, streamline filings. - Published: 2025-03-05 - Modified: 2025-03-20 - URL: https://1stopvat.com/ioss-compliance/ Introducing the Import One Stop Shop (IOSS) as a simplified EU VAT import solution makes cross-border transactions less complicated. We have developed practical IOSS VAT compliance solutions for e-commerce vendors both based outside the EU and within the EU. Reduce your compliance costs with one IOSS registration for EU VAT. Trusted by leading companies in the industry: From the first day since the launch of IOSS, we have been assisting e-commerce businesses in simplifying their cross-border compliance by providing top-notch IOSS intermediary services. We will cover the entire scope for Import One-Stop Shop compliance. Reduce your costs, leverage the IOSS, and expedite the import process.  Free Consultation & VAT registration check Share your business details, and we’ll determine where and how to register for VAT. IOSS registration & reporting services We handle everything, from IOSS registration to government communication. Cross-border VAT Consulting for IOSS We file, monitor changes, and update you proactively. Did you know that the one registration for the IOSS scheme is enough to cover the reporting of all imports of low-value goods to all your buyers that could be based in 1 or 27 Member States. One registration to cover intra-EU supplies for 27 Member States. One IOSS intermediary will cover the full scope of your e-commerce sales. More about VAT Why us? Book a FREE consultation They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of... --- ### Sales tax consulting services > Expert sales tax consulting services to ensure full compliance across multiple states. Get guidance, customized solutions, and ongoing support - Published: 2025-03-05 - Modified: 2025-03-20 - URL: https://1stopvat.com/sales-tax-consulting-services/ Managing Sales and Use tax compliance in different states is a demanding task. Our team has gathered extensive practical experience concerning transaction-based taxes in various regions. Driven by this knowledge, we have developed custom-based multi-state sales tax solutions to resolve any Sales or Use tax puzzle. Trusted by leading companies in the industry: We are very familiar with the complexities that surround GST compliance. Distinct GST registration requirements, different languages, rules, and regulations specific to the type of business activity. We know it can be very overwhelming. Our experienced team and credible network of partners are here to assist your business with all GST-related tasks. Free consultation and Sales Tax status review Share your business details, and we’ll determine where and how to register for Sales tax. Custom-made solutions for sales tax compliance We handle everything, from Sales tax registration to government communication. Timely compliance and constant support We file, monitor changes, and update you proactively. In the US, Sales tax is a part of the tax system in 45 states and the District of Columbia. Local sales tax is an integral part of the tax regimes in 38 states. A curious fact for out-of-state vendors is that in some states, the local sales tax rates are above the statewide rate. With this fact in mind, the awareness of the proper tax rates is critical for correct tax calculations. More about VAT Why us? Book a FREE consultation They guided us through the VAT registration process smoothly and even connected... --- ### Wir haben Ihre Einreichung erhalten. Was kommt jetzt? - Published: 2025-02-24 - Modified: 2025-02-24 - URL: https://1stopvat.com/danke/ Vielen Dank für Ihre Einreichnung! Nehmen Sie sich jetzt Zeit, sich auszuruhen und sich auf das zu konzentrieren, was Ihnen wichtig ist. Sei es eine gute Tasse Kaffee zu genießen oder Ihrer Lieblingstätigkeit nachzugehen. Ihre Einreichung ist in guten Händen, und unser Team prüft sie bereits. Sie können davon ausgehen, dass Sie innerhalb von 24 Stunden von uns hören werden, also behalten Sie Ihren Posteingang im Auge. Für die Zwischenzeit finden Sie hier drei Vorschläge, die Sie zu Ihrem Kaffee genießen können: Stöbern Sie in unserem Blog Interaktive Steuerkarte Newsletter abonnieren Sie brauchen dringend Hilfe? Kontaktieren Sie uns unter info@ – wir sind für Sie da! --- ### GST compliance and filing > Navigating GST rules shouldn’t slow you down. We simplify registration, filing & compliance so you can focus on business growth. - Published: 2025-02-17 - Modified: 2025-03-20 - URL: https://1stopvat.com/gst-compliance-and-filing/ We know that GST compliance is central to the success of any business that plans to expand its reach to these regions. Our tax advisors and accountants have compiled a comprehensive GST compliance checklist to assist you in successfully handling all tax-related matters. Trusted by leading companies in the industry: We are very familiar with the complexities that surround GST compliance. Distinct GST registration requirements, different languages, rules, and regulations specific to the type of business activity. We know it can be very overwhelming. Our experienced team and credible network of partners are here to assist your business with all GST-related tasks. Free consultation & GST registration requirements  Share your business details, and we’ll determine where and how to register for GST. Tailor-made scheme for registration We handle everything, from GST tax registration to government communication. Assigned manager for GST return filing process We file, monitor changes, and update you proactively. Did you know that two global economic powerhouses have a dual GST structure? Canada and India have a dual GST structure, Central GST and State GST. The dual GST model means two distinct taxation components when imposing the final GST rate on the related supply. More about VAT Why us? Book a FREE consultation They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency, reducing costs, and supporting our business expansion. Surfshark... --- ### Sales tax compliance and filing > Sales tax compliance - registration, filing & expert guidance so you stay compliant, avoid penalties & focus on growing your business. - Published: 2025-02-17 - Modified: 2025-03-20 - URL: https://1stopvat.com/sales-tax-compliance-and-filing/ We have designed a comprehensive sales and use tax compliance playbook to assist your business with successful expansion into the US market. We are here to help you how to manage sales tax compliance with ease. Trusted by leading companies in the industry: We are well aware of the sales tax compliance obligations that remote businesses experience when they are looking to expand their business into the States. Different tax rate rules for sales tax reporting and filing could look insurmountable. Our advisory and reporting team will take this worry from you so you can put your time and effort into developing your business. Free consultation & sales registration check Share your business details, and we’ll determine where and how to register for sales tax. Tailor-made scheme for registration We handle everything, from sales tax registration to government communication. Assigned manager for sales tax filing services We file, monitor changes, and update you proactively. Did you know there are more than 11,000 distinct tax jurisdictions in the US, with different rules and tax rates? If your business has customers across the States, you should be aware that you will need to charge different tax rates for these supplies after successful registration in each State. More about VAT Why us? Book a FREE consultation They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency,... --- ### Demande reçue. Que se passe-t-il ensuite ? - Published: 2025-02-14 - Modified: 2025-02-24 - URL: https://1stopvat.com/merci/ C’est le moment idéal pour respirer, savourer le moment présent et vous adonner à ce que vous aimez, qu’il s’agisse de vous plonger dans un bon livre ou de vous promener tranquillement en ville. Votre demande est entre de bonnes mains et notre équipe est déjà en train de l'examiner. Attendez-vous à recevoir une réponse de notre part dans les 24 heures, alors gardez un œil sur votre boîte de réception ! En attendant, voici trois ressources dont vous pouvez profiter : Consulter notre blog Carte fiscale interactive S'abonner à la newsletter Besoin d'une aide urgente ? Contactez-nous à l'adresse info@ - nous sommes là pour vous ! --- ### Presentación recibida. ¿Y ahora qué? - Published: 2025-02-14 - Modified: 2025-02-24 - URL: https://1stopvat.com/gracias/ Ya tenemos tu propuesta: ¡es hora de relajarse! Tómate un café, disfruta de Netflix o haz lo que te haga feliz. Su propuesta está en buenas manos y nuestro equipo ya la está revisando. Recibirás noticias nuestras en 24 horas, así que no pierdas de vista tu bandeja de entrada. Mientras tanto, aquí tiene tres recursos para disfrutar con su café: Navega por nuestro blog Mapa fiscal interactivo Suscríbete al newsletter ¿Necesita ayuda urgente? Póngase en contacto con nosotros en info@: ¡estamos a su disposición! --- ### Events and webinars > Stay updated on tax and compliance webinars. Watch on demand video or join live sessions. - Published: 2025-02-04 - Modified: 2025-02-17 - URL: https://1stopvat.com/events/ Upcoming events Browse all our webinars https://youtu. be/woe4i-5yQm4? feature=shared How to Scale and Comply with Local Taxes Expanding globally? Navigating tax laws can be complex. Join us and Quaderno for expert insights on Sales Tax, VAT, and GST. Learn how to stay compliant while growing your business internationally. Watch on demand https://youtu. be/CmTqp_wHMPM? feature=shared Office Hours - Let's Talk Taxes  Gain expert insights on US sales tax, the VAT OSS scheme, and unique tax cases. Join us and Quaderno for an open discussion on tax compliance and real-world challenges from our clients and webinar participants. Watch on demand https://youtu. be/0DWPRDBkWNk? feature=shared Selling Online from the UK into the EU In this webinar, A2X collaborates with us to provide essential guidance on navigating VAT registration, understanding cross-border tax implications, and ensuring compliance with EU regulations. Watch on demand https://youtu. be/MducP_Rhri4? feature=shared Office Hours - Sales Tax Q&A Our indirect tax experts break down complex questions from participants worldwide who need clarity on how indirect taxes affect their business and liabilities. Watch on demand --- ### Paperwork? What Paperwork? - Published: 2025-01-26 - Modified: 2025-02-17 - URL: https://1stopvat.com/paperwork-what-paperwork/ We've got your submission - time to relax! Grab a coffee, binge Netflix, or do whatever makes you happy. Your submission is in good hands, and our team is already reviewing it. Expect to hear from us within 24 hours, so keep an eye on your inbox. In the meantime, here are three resources to enjoy with your coffee: Browse our blog Interactive tax map Subscribe for newsletter Need urgent help? Contact us at info@ - we’re here for you! --- ### 1stopvat and amazon sellers society partnership > Trusted by Amazon Sellers Society, we handle from VAT registration to reporting, so you can focus on growing your business. - Published: 2025-01-22 - Modified: 2025-03-20 - URL: https://1stopvat.com/1stopvat-and-amazon-sellers-society-partnership/ Effortless VAT compliance for your business Trusted by Amazon Sellers Society. From registration to reporting, we handle it all so you can focus on growing your business. Talk to VAT expert Amazon Sellers Society is dedicated to helping eCommerce sellers succeed through Amazon account management, sales optimization, and revenue growth. As your business scales, VAT compliance becomes crucial - this is where 1stopVAT steps in. We handle the VAT, so you can focus on growing your business. Why 1stopVAT? Sign up Schedule a consultation to discuss your specific requirements and receive personalized guidance. Provide necessary details Share your business details, and we’ll determine where and how to register for VAT. We handle the rest We manage everything, from VAT registration to government communication. Trusted by leaders Fill out this form hbspt. forms. create({ portalId: "26898439", formId: "8d8120b1-23c5-4a31-b3ac-bf7345d48fe9" }); Basics: What is VAT compliance, and why do I need it? In a generic sense, the VAT compliance scheme is a sum of different kinds of obligations that a taxable person needs to follow to be treated as a VAT-compliant taxable person. From the perspective of a professional services provider, VAT compliance mainly starts with determining the VAT registration obligation of the business in question, then passes through VAT reporting and payment activities, through determining VAT exposure in different jurisdictions if business operations are of a cross-border nature. How long does the process take? The length of time for the process varies depending on the complexity of the business operations and the... --- ### Let's simplify your taxes together - Published: 2024-12-20 - Modified: 2025-03-26 - URL: https://1stopvat.com/lets-simplify-your-taxes-together-2/ To get FREE consultation Fill out this form Or book a meeting We're here to handle your VAT needs. Contact us by phone or e-mail, and we'll make sure to respond shortly. +370 620 46060 info@ Headquarters - NL Schiphol Boulevard 465, Tower C-4, 1118BK Schiphol, Amsterdam, Netherlands Back Office - LTU Ozo st. 12A-1, LT-08200 Vilnius, Lithuania USA Office - Delaware 651 N Broad St, Suite 206, Middletown, 19709, New Castle, Delaware /1stopvat /1stopvat @1_stop_vat /1stopvat We're offering a FREE consultation to discuss your tax concerns and find the best solutions for your business. No strings attached, it's completely free of charge. So why not take advantage of this? Get in touch with us today! --- ### Effiziente und zuverlässige VAT-Lösungen. - Published: 2024-11-27 - Modified: 2024-11-27 - URL: https://1stopvat.com/effiziente-und-zuverlassige-vat-losungen/ Warum 1stopVAT? Vertraut von Senden Sie uns das Formular und erhalten Sie eine maßgeschneiderte Umsatzsteuerstrategie für Ihr Holen Sie sich Ihre Beratung 1 Umsatzsteuerregistrierung Unsere umfassenden Leistungen zur Umsatzsteuerregistrierung gewährleisten, dass Ihr Unternehmen in jedem Land schnell und korrekt registriert wird, auch dort, wo das Verfahren komplex ist und die Vorschriften abweichen. Wir lösen für Sie alle damit verbundenen Probleme. 2 Mehrwertsteuerbefüllung Sobald Ihre Umsatzsteuer-Identifikationsnummer vorliegt, ist es unerlässlich, stets die örtlichen Vorschriften einzuhalten. Unsere Experten stellen sicher, dass Ihre Umsatzsteueranmeldungen fristgemäß übermittelt werden, so vermeiden Sie kostenaufwendige Verspätungen und Fehler bei den Einreichungen. 3 Umsatzsteuerberatung Sie benötigen Beratung oder Unterstützung bei der Umsatzsteuer-Compliance? Egal, ob Sie spezielle Fragen haben oder mit komplexen Steuerproblemen konfrontiert sind, unser erfahrenes Team bietet Ihnen eindeutige, präzise Lösungen und Beratung. Fordern Sie jetzt eine kostenfreie Beratungsleistung an *Die Konsultation findet in englischer Sprache statt. Die Zusammenarbeit mit 1stopVAT hat uns bei Surfshark die Arbeit erheblich erleichtert. Sie haben uns reibungslos durch den Umsatzsteuer-Registrierungsprozess geführt und uns sogar mit den richtigen Partnern verbunden, als wir zusätzliche Hilfe brauchten. Durch ihre Effizienz und Unterstützung nahmen sie uns viel Stress ab, steigerten unsere Effizienz, senkten die Kosten und unterstützten unseren Geschäftsausbau bei gleichzeitiger Gewährleistung der Compliance. Surfshark 1stopVAT war ein wichtiger Partner bei der Unterstützung des globalen Wachstums von NordSecurity durch das Angebot maßgeschneiderter Mehrwertsteuerlösungen. Sie haben unsere Mehrwertsteuerbedürfnisse von Anfang an verstanden und in jedem Schritt die perfekten Lösungen bereitgestellt. Ganz gleich, ob es darum ging, uns bei der Expansion in neue Bereiche zu unterstützen oder... --- ### Simplifiez la gestion de la TVA avec des solutions globales adaptées. - Published: 2024-11-27 - Modified: 2024-11-27 - URL: https://1stopvat.com/simplifiez-la-gestion-de-la-tva-avec-des-solutions-globales-adaptees-2/ Pourquoi choisir 1stopVAT ? Confiance de la part de Soumettez votre formulaire dès aujourd'hui pour recevoir une consultation gratuite et découvrir comment nous pouvons optimiser votre conformité à la TVA dans le monde entier. Débloquez votre stratégie TVA personnalisée 1 Enregistrement TVA Nos services individualisés d’enregistrement de la TVA garantissent que votre entreprise est enregistrée rapidement et correctement, même dans les pays où le processus peut être un défi. Nous prenons soin de tous les détails, vous pouvez donc vous concentrer sur un développement en toute confiance. 2 Déclaration de TVA Une fois votre numéro de TVA sécurisé, rester conforme est essentiel. Nous nous occupons du dépôt dans les délais de vos déclarations de TVA afin que vous puissiez éviter les risques et les retards inutiles tout en restant pleinement conforme aux réglementations locales. 3 Conseil en matière de TVA Vous avez des questions sur la conformité à la TVA ? Notre équipe de professionnels expérimentés est là pour vous offrir une expertise conseil, en apportant des éclaircissements même sur les questions fiscales les plus complexes. Nous nous engageons à aider votre entreprise à rester conforme et efficace à chaque étape. Remplir ce formulaire *La consultation se déroulera en anglais Travailler avec 1stopVAT nous a facilité les choses chez Surfshark. Ils nous ont guidés tout au long du processus d'enregistrement de la TVA et nous ont même mis en contact avec les bons partenaires lorsque nous avons eu besoin d'une aide supplémentaire. Leur efficacité et leur soutien nous ont soulagés d'une grande... --- ### Soluciones globales de declaración del IVA que potencian tu negocio. - Published: 2024-11-27 - Modified: 2024-11-27 - URL: https://1stopvat.com/soluciones-globales-de-declaracion-del-iva-que-potencian-tu-negocio-2/ ¿Por qué elegir 1stopVAT? De confianza Rellena el formulario para recibir una estrategia de IVA personalizada para tu empresa, que garantice el cumplimiento transfronterizo con facilidad y sin complicaciones. Consulta gratuita 1 Registro del IVA Con nuestro servicio completo de registro del IVA, tu empresa puede registrarse en cualquier país, incluso en lugares donde el proceso puede ser complicado. Nos ocuparemos de todo por ti, garantizando un registro ágil. 2 Presentación del IVA Una vez que tu empresa ya cuente con un número de IVA, cumplir la normativa es fundamental. Nos encargamos de la presentación de tus declaraciones del IVA, garantizando que se presenten a tiempo y de acuerdo con la normativa local, para que puedas centrarte en lo que importa. 3 Consultoría sobre el IVA ¿Tienes dudas sobre la declaración del IVA? ¡Cuenta con nosotros! Nuestro equipo está preparado para responder a cualquier pregunta, resolver cualquier problema y ayudar a tu empresa con un servicio de asesoría fiscal online experta siempre que lo necesites. Consigue ahora tu consulta personalizada *La consulta se celebrará en inglés Trabajar con 1stopVAT nos ha facilitado mucho las cosas en Surfshark. Nos guiaron a través del proceso de registro del IVA sin problemas e incluso nos pusieron en contacto con los socios adecuados cuando necesitamos ayuda adicional. Su eficacia y apoyo nos permitieron relajarnos, aumentando nuestra eficiencia, reduciendo costes y apoyando la expansión de nuestro negocio al tiempo que garantizaban nuestro cumplimiento de la normativa. Surfshark 1stopVAT ha sido un socio importante para apoyar... --- ### Welcome! We’re here for you to simplify your taxes > Free VAT Compliance Review for your business. VAT Compliance and Analysis software. Free VAT help or get your business VAT registered with 1stopVAT. - Published: 2024-11-25 - Modified: 2025-03-20 - URL: https://1stopvat.com/contactt/ Fill out this form Or book a call --- ### > We understand how stressful the Black Friday season can be. Sign up to receive early access to our exclusive offers before the big rush. - Published: 2024-10-17 - Modified: 2025-03-20 - URL: https://1stopvat.com/welcome-to-dark-side-lol/ Black Friday Deal is Over Sign up for 2025 waiting list Black Friday is over, but you can surprise yourself next year! Add your contact to be the first in line for our 2025 deals: hbspt. forms. create({ portalId: "26898439", formId: "4cebe818-cf21-4e6d-8708-86a8d3237cf4" }); --- ### Effiziente und zuverlässige VAT-Lösungen > Vereinfachen Sie Ihre Umsatzsteuer-Compliance mit 1stopVAT – wo Präzision und Vertrauen zählen. Nutzen Sie nahtlose, globale Steuerlösungen mit der Sicherheit, die Ihr Unternehmen verdient. - Published: 2024-10-01 - Modified: 2025-03-03 - URL: https://1stopvat.com/effiziente-und-zuverlassige-umsatzsteuerlosungen-fur-ihr-unternehmen/ Warum 1stopVAT? Vertraut von Senden Sie uns das Formular und erhalten Sie eine maßgeschneiderte Umsatzsteuerstrategie für Ihr Holen Sie sich Ihre Beratung 1 Umsatzsteuerregistrierung Unsere umfassenden Leistungen zur Umsatzsteuerregistrierung gewährleisten, dass Ihr Unternehmen in jedem Land schnell und korrekt registriert wird, auch dort, wo das Verfahren komplex ist und die Vorschriften abweichen. Wir lösen für Sie alle damit verbundenen Probleme. 2 Mehrwertsteuerbefüllung Sobald Ihre Umsatzsteuer-Identifikationsnummer vorliegt, ist es unerlässlich, stets die örtlichen Vorschriften einzuhalten. Unsere Experten stellen sicher, dass Ihre Umsatzsteueranmeldungen fristgemäß übermittelt werden, so vermeiden Sie kostenaufwendige Verspätungen und Fehler bei den Einreichungen. 3 Umsatzsteuerberatung Sie benötigen Beratung oder Unterstützung bei der Umsatzsteuer-Compliance? Egal, ob Sie spezielle Fragen haben oder mit komplexen Steuerproblemen konfrontiert sind, unser erfahrenes Team bietet Ihnen eindeutige, präzise Lösungen und Beratung. Fordern Sie jetzt eine kostenfreie Beratungsleistung an *Die Konsultation findet in englischer Sprache statt. Die Zusammenarbeit mit 1stopVAT hat uns bei Surfshark die Arbeit erheblich erleichtert. Sie haben uns reibungslos durch den Umsatzsteuer-Registrierungsprozess geführt und uns sogar mit den richtigen Partnern verbunden, als wir zusätzliche Hilfe brauchten. Durch ihre Effizienz und Unterstützung nahmen sie uns viel Stress ab, steigerten unsere Effizienz, senkten die Kosten und unterstützten unseren Geschäftsausbau bei gleichzeitiger Gewährleistung der Compliance. Surfshark 1stopVAT war ein wichtiger Partner bei der Unterstützung des globalen Wachstums von NordSecurity durch das Angebot maßgeschneiderter Mehrwertsteuerlösungen. Sie haben unsere Mehrwertsteuerbedürfnisse von Anfang an verstanden und in jedem Schritt die perfekten Lösungen bereitgestellt. Ganz gleich, ob es darum ging, uns bei der Expansion in neue Bereiche zu unterstützen oder... --- ### Simplifiez la gestion de la TVA avec des solutions globales adaptées > Demandez dès aujourd’hui votre consultation gratuite sur la TVA et commencez à gérer votre TVA en toute simplicité. - Published: 2024-10-01 - Modified: 2025-03-03 - URL: https://1stopvat.com/simplifiez-la-gestion-de-la-tva-avec-des-solutions-globales-adaptees/ Pourquoi choisir 1stopVAT ? Confiance de la part de Soumettez votre formulaire dès aujourd'hui pour recevoir une consultation gratuite et découvrir comment nous pouvons optimiser votre conformité à la TVA dans le monde entier. Débloquez votre stratégie TVA personnalisée 1 Enregistrement TVA Nos services individualisés d’enregistrement de la TVA garantissent que votre entreprise est enregistrée rapidement et correctement, même dans les pays où le processus peut être un défi. Nous prenons soin de tous les détails, vous pouvez donc vous concentrer sur un développement en toute confiance. 2 Déclaration de TVA Une fois votre numéro de TVA sécurisé, rester conforme est essentiel. Nous nous occupons du dépôt dans les délais de vos déclarations de TVA afin que vous puissiez éviter les risques et les retards inutiles tout en restant pleinement conforme aux réglementations locales. 3 Conseil en matière de TVA Vous avez des questions sur la conformité à la TVA ? Notre équipe de professionnels expérimentés est là pour vous offrir une expertise conseil, en apportant des éclaircissements même sur les questions fiscales les plus complexes. Nous nous engageons à aider votre entreprise à rester conforme et efficace à chaque étape. Remplir ce formulaire *La consultation se déroulera en anglais Travailler avec 1stopVAT nous a facilité les choses chez Surfshark. Ils nous ont guidés tout au long du processus d'enregistrement de la TVA et nous ont même mis en contact avec les bons partenaires lorsque nous avons eu besoin d'une aide supplémentaire. Leur efficacité et leur soutien nous ont soulagés d'une grande... --- ### Soluciones globales de declaración del IVA que potencian tu negocio > En 1stopVAT, facilitamos la declaración del IVA para que puedas centrarte en hacer crecer tu empresa. Te contamos cómo podemos ayudarte. - Published: 2024-10-01 - Modified: 2025-03-03 - URL: https://1stopvat.com/soluciones-globales-de-declaracion-del-iva-que-potencian-tu-negocio/ ¿Por qué elegir 1stopVAT? De confianza Rellena el formulario para recibir una estrategia de IVA personalizada para tu empresa, que garantice el cumplimiento transfronterizo con facilidad y sin complicaciones. Consulta gratuita 1 Registro del IVA Con nuestro servicio completo de registro del IVA, tu empresa puede registrarse en cualquier país, incluso en lugares donde el proceso puede ser complicado. Nos ocuparemos de todo por ti, garantizando un registro ágil. 2 Presentación del IVA Una vez que tu empresa ya cuente con un número de IVA, cumplir la normativa es fundamental. Nos encargamos de la presentación de tus declaraciones del IVA, garantizando que se presenten a tiempo y de acuerdo con la normativa local, para que puedas centrarte en lo que importa. 3 Consultoría sobre el IVA ¿Tienes dudas sobre la declaración del IVA? ¡Cuenta con nosotros! Nuestro equipo está preparado para responder a cualquier pregunta, resolver cualquier problema y ayudar a tu empresa con un servicio de asesoría fiscal online experta siempre que lo necesites. Consigue ahora tu consulta personalizada *La consulta se celebrará en inglés Trabajar con 1stopVAT nos ha facilitado mucho las cosas en Surfshark. Nos guiaron a través del proceso de registro del IVA sin problemas e incluso nos pusieron en contacto con los socios adecuados cuando necesitamos ayuda adicional. Su eficacia y apoyo nos permitieron relajarnos, aumentando nuestra eficiencia, reduciendo costes y apoyando la expansión de nuestro negocio al tiempo que garantizaban nuestro cumplimiento de la normativa. Surfshark 1stopVAT ha sido un socio importante para apoyar... --- ### https://x.com/1stopvat - Published: 2024-09-16 - Modified: 2024-09-16 - URL: https://1stopvat.com/https-x-com-1stopvat/ --- ### VDA Services > Learn about Voluntary Disclosure Agreements in the US and how they can benefit your business. Backdated returns and more! - Published: 2024-07-31 - Modified: 2025-02-18 - URL: https://1stopvat.com/vda-services/ Late registration, late remittance, or payment of taxes more often follow e-commerce businesses than the ones within traditional retail. Voluntary Disclosure Agreement services designed by our team could significantly reduce penalties, interest, and look-back periods when the tax provisions aren’t followed. Book a Free consultation Trusted by leading companies in the industry: Cross-border e-commerce businesses in the highly competitive market are open to more compliance challenges than traditional brick-and-mortar businesses operating exclusively offline. As experts in VAT, Sales Tax, and GST, we will explain the benefits of obtaining a voluntary tax disclosure for businesses in the digital economy. Assessment & Strategy Consultation, exposure analysis, and a tailored compliance plan. Application Preparing mandatory documents and submitting the Voluntary Disclosure Agreement. Tax Negotiation Managing all communications and negotiations with tax authorities. Many U. S. states offer Voluntary Disclosure Agreements (VDAs) for sales and use tax, allowing businesses to eliminate penalties on unpaid taxes. Depending on the state and specific circumstances, this can result in savings of 10% to 30% of total tax liability. More about VAT Why us? Book a FREE consultation about VDA service They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency, reducing costs, and supporting our business expansion. Surfshark They understood our VAT needs from the start and provided the perfect solutions at every step. Whether it was helping us expand... --- ### Discover a friendlier VAT solution: better than Avalara, HelloTax, and more - Published: 2024-07-18 - Modified: 2025-03-20 - URL: https://1stopvat.com/why-choose-us/ High costs with Avalara? Complex processes with SimplyVAT? Limited support with HelloTax? 1stopVAT provides a cost-effective, user-friendly solution with dedicated account manager. See features and benefits of 1stopVAT vs. other companies: Feature1stopVATAvalaraHelloTaxSimplyVATPricingLowerHighMediumMediumEase of useVery easyEasyModerateEasyCustomer supportDedicated account manager for every clientLimitedLimitedLimitedCoverageGlobalGlobalEU onlyEU onlyIntegrationSeamlessComplexModerateSeamlessSpeed of processingFastModerateSlowModerate Why us? We provide an efficient and reliable VAT compliance solution that saves you time and money. Our platform is designed to streamline VAT processes, making it easier for businesses to comply with regulations without the hefty price tag. With personalized support and global coverage, we ensure that your VAT needs are met no matter where you are. Switching to 1stopVAT is easy Get started today and experience the difference. --- ### Refer a company > Join our referral program and start sharing the value of our VAT services with friends and colleagues. - Published: 2024-07-18 - Modified: 2024-11-27 - URL: https://1stopvat.com/referral-program/ Become a referral partner Why become a referrer? How it works? Sign Up Register for our referral program and receive your unique referral link. Share Your Link Send your referral link to friends, colleagues, and business contacts. Earn Partner Fees Earn a commission for every new customer who signs up using your referral. Why us? Join us and let's start this journey towards shared prosperity. Join our referral program --- ### Thank You for Downloading the "VAT in the Digital Age" E-Guide! - Published: 2024-06-10 - Modified: 2024-06-12 - URL: https://1stopvat.com/success/ Your Guide is On Its Way! We appreciate your interest in our e-guide designed to help you navigate the complexities of VAT in today's digital landscape. Your e-guide has been sent to the email address you provided. If you don't see it, please check your spam or promotions folder. Explore More: Latest articles on VAT and tax topics Follow us on social media: Facebook LinkedIn Instagram Need Help? Contact us by phone or e-mail, and we'll make sure to respond shortly. +370 620 46060 info@ --- ### Partner with us > Collaborate with us to drive growth and innovation. Access cutting-edge resources and achieve mutual success. Discover partnership opportunities now! - Published: 2024-05-23 - Modified: 2024-05-27 - URL: https://1stopvat.com/partner-with-us/ --- ### Subscribe - Published: 2024-04-23 - Modified: 2024-04-23 - URL: https://1stopvat.com/subscribe/ --- ### CBAM Services - Published: 2023-12-19 - Modified: 2024-07-26 - URL: https://1stopvat.com/cbam-services/ In a world actively combating climate change, the European Union's Carbon Border Adjustment Mechanism (CBAM) represents a crucial change in environmental policy. As we step towards a greener future, your business needs a trusted partner to adapt and excel in this evolving landscape. Our specialized CBAM services are designed to help you navigate these changes with confidence and efficiency. Who needs CBAM services? CBAM impacts all importers of specific commodities from third countries into the EU. These include sectors like iron and steel, aluminum, cement, electrical energy, hydrogen, fertilizers, and various downstream products. If your business operates within these fields, staying ahead of CBAM regulations is crucial for uninterrupted trade and profitability. Timeline and implementation The CBAM will roll out in phases, starting with a transitional period from 1 October 2023 to 31 December 2025. This initial phase is a learning curve for businesses, focusing on data reporting without financial adjustments. However, non-compliance, such as failing to submit quarterly reports, can lead to penalties. The definitive phase begins on 1 January 2026, progressively increasing the coverage of embedded emissions and phasing out free allocations under the EU Emissions Trading System (EU ETS). By 2034, 100% of embedded emissions will be subject to CBAM certificates. Customized reporting solutions – we provide reporting assistance to ensure accurate and timely data submission, safeguarding you from potential penalties. Strategic advisory – our experts offer insightful consultations to help your business adapt its operations and strategies in line with CBAM requirements. Financial impact analysis – we assess... --- ### EPR Services - Published: 2023-11-29 - Modified: 2024-07-26 - URL: https://1stopvat.com/epr-services/ At 1stopVAT, we understand the growing need for businesses to take responsibility for the environmental impact of their products. Our Extended Producer Responsibility (EPR) service is designed to ease your journey towards compliance with international environmental standards. What is Extended Producer Responsibility (EPR)? EPR is a policy approach under which producers are given a significant responsibility – financial and physical – for the treatment or disposal of post-consumer products. Assigning such responsibility could in principle provide incentives to prevent waste at the source, promote product design for the environment, and support the achievement of public recycling and materials management goals. Who is affected by EPR? EPR requirements have been in place since 2012. Generally, all companies are expected to adhere to EPR, but it's only in recent times that Germany, France and Spain have taken steps to ensure that online platforms and other e-commerce sellers fulfill their eco-contribution obligations. If you want to sell products in France, Germany and Spain through marketplaces, it's crucial to ensure that you comply with the EPR regulations in each of these countries. Marketplaces must be able to prove that everyone who sells to the mentioned countries have been issued with EPR number. Therefore, request proof of compliance with EPR regulations before allowing sellers to list and sell products on their platforms. EPR regulations are designed to make producers, importers, and retailers responsible for the entire life cycle of their products, including their end-of-life disposal. Consumers also play a part, as EPR can influence their... --- ### E-invoicing - Published: 2023-11-08 - Modified: 2023-11-09 - URL: https://1stopvat.com/e-invoicing/ When we read about digital reporting requirements or the transformation of business processes regarding invoicing life-cycle, we often encounter the term eInvoicing or electronic invoicing. If we take a bit deeper dive and try to look at when the electronic invoice or eInvoicing has been gaining traction or the terminology closely connected to it, we can see that the eInvoice, online tax reporting, aren’t something that started just a few years ago, but it has been present even more than the EU Parliament and Council Directive on Electronic Invoicing in Public Procurement. Digitalization of the invoicing life-cycle started many years before the Directive came into force. This shift from paper-based invoicing to electronic invoicing and related digital reporting of transactional data has been rolled out for many years in Europe and globally. For example, Fiscalization, which is one of the categories of digital tax reporting for the Retail sector, rolled out the obligation of online transmission of transactional data two decades ago via, e. g. , GPRS systems and has evolved in the last 20 years into the creation of cloud-based systems which through API connection transfer transactional data to servers of Tax Authority in real-time. These retail business processes are mainly connected to B2C transactions, with customers getting an electronic receipt via email. Still, the supplier should digitally report transactional data in quasi/real-time. Ok, so let’s not move too far away from electronic invoicing, and let’s not dive too deep into the technical specifics of electronic invoicing and connected... --- ### Let's simplify your taxes together! > Ready to streamline your VAT compliance? Connect with our experts and get free consultation. Reach out today for personalized assistance. - Published: 2023-07-24 - Modified: 2025-03-26 - URL: https://1stopvat.com/lets-simplify-your-taxes-together/ To get FREE consultation Fill out this form hbspt. forms. create({ region: "eu1", portalId: "26898439", formId: "eecf1624-c658-4b8a-8957-34c2351e94d6" }); Or book a meeting We're here to handle your VAT needs. Contact us by phone or e-mail, and we'll make sure to respond shortly. +370 620 46060 info@1stopvat. com Headquarters - NL Schiphol Boulevard 465, Tower C-4, 1118BK Schiphol, Amsterdam, Netherlands Back Office - LTU Ozo st. 12A-1, LT-08200 Vilnius, Lithuania USA Office - Delaware 651 N Broad St, Suite 206, Middletown, 19709, New Castle, Delaware /1stopvat /1stopvat @1_stop_vat /1stopvat We're offering a FREE consultation to discuss your tax concerns and find the best solutions for your business. No strings attached, it's completely free of charge. So why not take advantage of this? Get in touch with us today! --- ### Dive into our customer case studies > Discover inspiring customer success stories in our case studies. See how businesses achieve remarkable results with our services. - Published: 2023-07-12 - Modified: 2023-10-27 - URL: https://1stopvat.com/case-studies/ How we helped We've registered and set up VAT compliance for EU Amazon seller with 18M EUR turnover in all European countries where sales thresholds has been reached. We also registered and set up VAT compliance for this Amazon seller in all Amazon Pan – European FBA countries – United Kingdom, Germany, France, Italy, Spain, Poland and the Czech Republic, as storage of inventory triggers VAT implications for Amazon Pan – European FBA sellers without even reaching applicable distance sales thresholds. Moreover, this Amazon seller is using our software which was integrated with clients’ Amazon seller account and now helps automatically collect data required for VAT tax returns filing. How we helped We've helped distance seller to identify countries where distance selling thresholds were exceeded and VAT or GST registrations were triggered, registered this distance seller for VAT/GST purposes in Australia, India, Japan, Norway, South Africa and Turkey and guaranteed VAT and GST compliance. We've also arranged fiscal representatives in Japan for Consumption Tax (VAT and GST equivalent in Japan) purposes and in South Africa and France for VAT purposes. Furthermore, after registering this distance seller for VAT purposes in Norway, we've has submitted VAT returns on behalf of this distance seller for its previous selling periods in Norway as distance sales thresholds has been reached prior the registration. How we helped We've analysed and prepared taxability matrix to internet security service provider. We've has delivered taxability matrix on taxation of SaaS and Digital Goods in all US States, Canada,... --- ### GST Calculator > Calculate GST with ease using our online GST calculator. Accurate, quick, and user-friendly GST calculator online for all your needs. Try it now! - Published: 2023-01-04 - Modified: 2023-10-25 - URL: https://1stopvat.com/gst-calculator/ GST is a tax that varies across different jurisdictions. The easiest way to find out what GST percentage to add to a price is to use a custom location-based GST Calculator or an Online GST Calculator. But first, let’s find out more about the GST. What is GST? Goods and services tax—the GST—is the VAT equivalent. In its essence, it is a consumption tax levied on the final customer and deducted throughout the production process. Different countries tend to have varying GST rules and percentages. Typically, GST is implemented to simplify the taxation system as the same rate is applied to the majority types of sales and services. Some countries, however, have dual GST systems, meaning that a state sales tax is added on top of the country‘s GST rate. This might make calculating a correct GST rate more challenging. Here‘s a list of countries that have GST instead/as a replacement for VAT: Australia GST calculator Canada GST calculator India GST calculator Malaysia GST calculator Maldives GST calculator New Zealand GST calculator Papua New Guinea GST calculator Singapore GST calculator To find the GST amount that needs to be added to the price of a good or service, it is best to use a dedicated Online GST Calculator created for the country. The GST rates in different countries vary from 0 to 28%, depending on the type of product or service sold. This is why GST Tax Calculator can be very helpful for companies operating internationally. To collect GST, companies... --- ### Celebrate your wildest thoughts, be high on growth, and fine-tune your skills > Celebrate your wildest thoughts, be high on growth, and fine-tune your skills. Join 1stopVAT team and start your journey to success today. - Published: 2021-11-25 - Modified: 2025-01-16 - URL: https://1stopvat.com/career/ Born from an idea in 2020, 1stopVAT rapidly transformed into a highly successful live product. Today we are one of the fastest-growing tax compliance startups that is constantly moving forward and refusing to slow down or settle for anything less. Our mission is to enable businesses to thrive and contribute to a brighter future. We accomplish this by offering top-notch VAT compliance services and innovative solutions. With a clientele of over 800 clients and counting, we confidently process more than 26,000 VAT returns each year and operate in over 100 locations globally. What's even better is that these figures are progressively increasing every day, highlighting our unrelenting dedication to growth and achievement. Educational and growth opportunities International environment Casual and informal communication Work-life balance 4 extra days off per year Workations Puppies at the office and Kudos days 🐕 Supplementary healthcare insurance Parties and team buildings Essentials (snacks at the office, volunteering, etc. ) Real career opportunties Our business isn’t all about numbers and spreadsheets, it’s about working towards the same goal, making an impact, and while doing that - living it up, even though we work with taxes. Each of us contributes to a brighter future for ourselves, our partners, and our clients by creating, delivering, and contributing to meaningful work every day. We value knowledge sharing, we fine-tune your unique skills and we recognize your personal growth. Your continuous development is achieved while ensuring a healthy work-life balance. Roots of our identity --- ### Sales Tax calculator > Accurate Sales Tax Calculator - Easily Calculate Sales Tax for Any Amount. Try our Sales Tax Calc for precise results. Try it now! - Published: 2021-11-08 - Modified: 2023-10-25 - URL: https://1stopvat.com/sales-tax-calculator/ Sales Tax Calculator 1stopVAT U. S. Sales Tax Calculator determines the Sales Tax amount applicable at your state. Using our combined Sales Tax Calc, you will find all the rates that constitute the total Sales Tax in your location. The rates on our online Sales Tax Calculator include the latest values of the Special rate, State rate, City rate, and Country rate. To use this Sales Tax rate Calculator, simply choose the state and the zip code of the sale’s destination. If you are looking for a Sales Tax Calculator for businesses in Europe, please check our VAT calculator. And if you have further questions about your Sales Tax compliance or our Sales Tax Calc, click here to contact us. Sales Tax in short A Sales Tax is paid on the sale of goods or services and falls on the end-consumer. Once a business establishes a nexus in a State, it is held responsible for collecting the right amount of Sales Tax and submitting it to the state’s tax authority in a timely manner. The total Sales Tax rate varies based on the state, district of origin, and the district where the customers are based. As these rates change over time, using our Sales Tax Calculator by zip code, you can conveniently access the latest Sales Tax rate. In addition to the Sales Tax, some states have also established transaction taxes called the sellers and consumer use tax, respectively. The seller use tax has to be collected by the Sales Tax-exempt... --- ### Import One Stop Shop scheme - Published: 2021-10-15 - Modified: 2023-08-29 - URL: https://1stopvat.com/import-one-stop-shop-scheme/ Import One Stop Shop scheme July 2021 marked the launch of two VAT simplification measures in the EU: One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes. While the former is aimed at service and domestic goods providers, the Import One Stop Shop scheme helps both EU and non-EU companies report for the sales of imported goods below the value of 150 EUR to EU customers. Benefits of IOSS registration Register once Using IOSS, entities selling imported goods need to complete only one VAT registration to get access to reporting VAT in multiple EU member countries. Both EU-based and non-EU-located businesses can use this scheme. VAT compliance made simple. Since the VAT exemption for imported goods below 22 EUR in the EU was lifted, more goods became subject to VAT. IOSS helps distance sellers report for VAT of goods below 150 EUR by using a single platform for all sales to EU customers. Fits online sellers and electronic interfaces. Like the OSS scheme, IOSS considers electronic interfaces liable for VAT if it facilitates the sale to the customer in the EU. Therefore, both online sellers and electronic interfaces can register on the IOSS platform. Entities of non-EU origin can do that with the help of EU-based intermediaries. Goods covered by IOSS: Goods dispatched from outside of the EU at the time they are sold. Goods transported in consignments worth less than 150 EUR (low value) containing one or multiple items. Goods, not subject to excise duties (typically applied... --- ### US Sales Tax > Find accurate information on State Sales Tax by state. Explore comprehensive resources and guides on Sales Tax by state for informed financial decisions. - Published: 2021-10-05 - Modified: 2023-10-25 - URL: https://1stopvat.com/us-sales-tax/ A sales tax is a government-imposed tax levied on the sale of goods and services. Forty-five U. S. states and the District of Columbia have a sales tax. The state sales tax is levied at the time of sale, collected by the seller and passed on to the government. Businesses are responsible for sales taxes in their jurisdictions if the company is located in a state with nexus. Sales TAX information In America, each state has its laws, so sales tax by state can vary for different categories of goods. In addition, taxes are regulated according to political and economic needs and requirements. However, sellers suppose to pay sales tax to the government. What is nexus? In all states, nexus is defined differently, but most described as a physical presence of economic connection. As a business, you only need to charge your clients by a sales tax in the states where you have sales tax nexus. So how to know if your company owns sales tax nexus? Here are some points: If you have a representative, office, or even a home office in the state; If you have employees in that state; If you store goods in that state; If you use Amazon FBA or other inventory storage services in that state; If you have any third party branches in the state; Even if you are temporarily trading in a particular state, for example, you are at an exhibition or fair. If the state you trade has a sales tax,... --- ### Dive deep into topics about taxes and get to know how to make your business thrive > Your one-stop destination for straightforward VAT guides. From VAT basics to practical tips, find everything you need about VAT. - Published: 2020-10-16 - Modified: 2023-10-27 - URL: https://1stopvat.com/vat-guides/ --- ### Check VAT Number > Check VAT number with our easy-to-use tool. Verify and validate your VAT number with just a few clicks. Ensure accuracy and compliance today. - Published: 2020-09-30 - Modified: 2023-10-25 - URL: https://1stopvat.com/check-vat-number/ Our VAT number lookup tool will help you: Get information about the company holding VAT code; Date of validation of VAT; VAT number checker will allow your validate provided VAT code. What is a VAT number? Every company which is registered to collect and pay VAT has to have a VAT registration number or VAT number. In each country, the number is provided by local tax authorities (for example in the United Kingdom it is HMRC). This number has to be provided on every issued invoice. The VAT registration number is made between 4 and 15 digits. It starts with 2 letters of the county code and is followed by 2-13 other characters. In order to follow legal regulations, it is very important to check the VAT numbers and have them validated to each client for transactions to a foreign company. It is the business liability to check a VAT number and validate it, otherwise, the penalties and duty to pay exempt VAT could be applied. Do I have to check VAT number? What if provided number is not verified? In European Union, you can use VIES system to check a company VAT number. If the client has provided you with the VAT code and state that it is valid, but you are not able to verify the code via VIES, then you have to request the verification of the VAT code with the tax authorities office in their country. What is my VAT number? You can check your VAT... --- ### Value Added Tax (VAT) Calculator > Calculate VAT effortlessly with our online VAT calculator. Accurate and user-friendly VAT calculator for all your needs. Try it now! - Published: 2020-09-27 - Modified: 2023-10-25 - URL: https://1stopvat.com/vat-calculator/ 1stopVAT calculator determines the VAT and total amount to charge inclusive or exclusive of VAT. VAT Calculator 1stopVAT VAT calculator determines the VAT amount which is applicable at customers location. It supports VAT-inclusive and VAT-exclusive computations for your convenience. Simply enter the price and select which category applies (E-services or E-books). Use it to calculate VAT and ensure that correct VAT amount is taxed from your customers. It’s the responsibility of each seller to ensure they are VAT-compliant. If you have questions about your VAT compliance and obligations or our online VAT calculator, click here to contact us. VAT calculator (often referred to as VAT calc, VAT checker, VAT calculator online) is an online tool, which you can use to estimate the amount of VAT you need to pay or reclaim and the gross price of the goods/services based on their net price or the gross price. You can use our handy VAT calculator to calculate the VAT charged on a net amount or the VAT included within a total amount. Since VAT rates can change over time, with our VAT online calculator it is easy to check VAT rate of any EU member. Definitions and Formulas VAT stands for Value Added Tax and is a type of indirect consumption tax imposed on the value added to goods or services. VAT is commonly used by governments all over the world as one of their main sources of the revenue. It is the most common consumption tax in the world and... --- ### Provided by experienced professionals, tailored to your business needs > 1stopVAT offers professional help and advice to international businesses concerning all tax-related matters: VAT/GST registration, filing, and compliance. - Published: 2020-04-15 - Modified: 2024-02-07 - URL: https://1stopvat.com/services/ E-Commerce is booming. Businesses are embracing the digital world to reach a wider customer base. However, varying tax rates, rules, and regulations across countries can make taxes a complex and time-consuming burden for companies of all sizes. That's where we come in. We provide guidance and innovative solutions to simplify tax processes and allowing businesses to explore new markets. 1 VAT registration With our complete registration services, your business can be registered anywhere in the world, even where this process can be tricky and regulations vary. Read more 2 VAT filing Once your business obtains a VAT number in a country, it's important to file periodic VAT returns to remain compliant with local regulations. Our team can ensure on-time reporting and submissions. Read more 3 VAT consulting Have questions or concerns about VAT compliance? No problem! We're here to solve any issue, answer any question or back-up your business in any situation when it comes to taxes matters. Read more --- ### VAT Consulting > Staying VAT compliant has become challenging due to changes to VAT legislation. Our team of experts is ready to handle all your VAT matters. - Published: 2020-04-15 - Modified: 2025-03-20 - URL: https://1stopvat.com/vat-consulting/ Cross-border VAT compliance can be quite challenging. Our tailor-made VAT-advisory services portfolio is prepared to help your business quickly navigate tax requirements. Trusted by leading companies in the industry: The only constant connection with VAT systems is continuous change — different tax rates, registration procedures, and reporting rules that vary from country to country. Non-compliance can be very costly. This is why having a credible and knowledgeable VAT consulting team is of essential importance.   Free consultation & VAT status review Share your business details, and we’ll determine where and how to register for VAT. Custom Solutions for international VAT We handle everything, from VAT registration to government communication. Ongoing Compliance & Support Continuous VAT monitoring, advisory services, and dedicated assistance. Free VAT Compliance Guide Ensure your business stays VAT-compliant with our essential guide. Learn how to navigate VAT regulations, avoid costly mistakes, and streamline tax processes. ✅ Understand VAT fundamentals✅ Simplify registration and compliance✅ Avoid common VAT pitfalls✅ Stay updated on regulations 📖 Get your free guide today! VAT regulations are constantly evolving, making compliance crucial. Failure to comply can result in penalties of up to 100% of the unpaid tax, significantly increasing financial risk. More about VAT Why us? Protect your business – schedule your free consultation today They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency, reducing costs, and... --- ### VAT Compliance and Filing services > To maintain global VAT compliance, you must follow each country’s tax rules & regulations – a tedious task. - Published: 2020-04-15 - Modified: 2025-03-20 - URL: https://1stopvat.com/vat-compliance-and-filing-services/ To assist you and your business in smooth expansion into new markets, we have developed an up-to-date global VAT compliance services portfolio for your rapid expansion into new regions. Trusted by leading companies in the industry: It definitely can be. We know the challenges that follow e-commerce businesses wishing to enter new markets rapidly. This is why one of the best solutions for companies operating cross-border is to transfer VAT compliance services and related VAT return services to trustworthy service providers.   Free VAT Compliance Guide Ensure your business stays VAT-compliant with our essential guide. Learn how to navigate VAT regulations, avoid costly mistakes, and streamline tax processes. ✅ Understand VAT fundamentals✅ Simplify registration and compliance✅ Avoid common VAT pitfalls✅ Stay updated on regulations 📖 Get your free guide today! Free consultation & VAT registration check Share your business details, and we’ll determine where and how to register for VAT. Tailor-made scheme for registration We handle everything, from VAT registration to government communication. Assigned manager for VAT filing services We file, monitor changes, and update you proactively. Did you know that over 80% of businesses expanding internationally face challenges with VAT compliance? VAT laws vary significantly between countries, and failing to register correctly can result in hefty fines, legal complications, and even suspension of operations for months. More about VAT Why us? They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a... --- ### VAT Registration services > Explore VAT registration: Learn how to register for VAT and the process for VAT registration. Expert guidance for a smooth start. Try it now! - Published: 2020-04-15 - Modified: 2025-03-20 - URL: https://1stopvat.com/vat-registration/ Behind every successful e-commerce business is a reliable infrastructure, including accounting and tax. In this tricky field, there are plenty of traps to avoid, from problems with tax authorities to your trading account getting suspended because you aren’t tax compliant. We help you with all aspects of VAT and sales tax, from tax consultancy to complex solutions. Value added tax (VAT), sales tax, and goods and services tax (GST) registration anywhere in the world. Your VAT registration needs to follow local rules, which can be tricky to understand. E-commerce’s almost limitless popularity has made this easier, and lots of countries have made online registering for VAT possible, but procedures and rules differ from country to country. Depending on customer type and the product you sell, this can get complicated very quickly and raise doubts on how to register for VAT. We help you keep track of all the necessary registrations, VAT register summaries and offer services tracking distance selling thresholds around the world. 1. Consultancy and identification of the countries for registration. 2. Assigned onboarding manager who will lead you through the entire registration process: 2. 1. You will receive the questionnaire and mandatory documents' list for successful VAT registration. 2. 2. You will receive constant updates about the registration process and status. 2. 3. Once the VAT code is received, you will get all the details related to filing frequency, filing deadlines, first reporting period, etc. 3. You will be assigned an account manager who will be the key... --- ### Tax map > Find out how much is VAT and stay informed about the current VAT rate. Make smart financial choices with our expert guidance. - Published: 2019-05-21 - Modified: 2025-01-30 - URL: https://1stopvat.com/tax-map/ Practical Tax Terminology: What is meant by consumption taxes? Looking at the consumption taxes and related types from a Global perspective, we can differentiate three main types of consumption taxes. These are: Value Added Tax(VAT); Goods and Services Tax(GST); Sales Tax. There are many similarities between these groups of consumption taxes; the main one is that they are levied on the sale of goods and services, and the generic label consumption taxes are used to emphasize that this tax is imposed on the consumption of specific goods and services. The rules governing what is a VAT tax is and how it's processed are mainly on the same page regarding its description, functionality, and calculation. Let’s briefly explain these three types of indirect taxes, e. g. , how they are set on the transaction, who administers them, country-based tax rates, and other relevant points. Value Added Tax What is a VAT tax? Value Added Tax(VAT) represents a consumption tax levied throughout the entire supply chain of the sale in question. That means that the only “added value” between stages is taxable. What is the VAT rate, and how is it calculated? To find out how much VAT by country is imposed on the supply in question and what VAT percentage needs to be used for the proper calculation is of essential importance. Calculating the correct VAT amount that must be collected for the tax authority can often be tricky due to the difficulty of finding the VAT rate that needs to... --- ### Taxes and VAT insights > Latest VAT compliance, sales and use tax news. Insights and constantly updated information to help you stay on top of your tax compliance needs. - Published: 2019-02-17 - Modified: 2024-11-18 - URL: https://1stopvat.com/blog/ --- ### Welcome! We’re here for you to simplify your taxes > Free VAT Compliance Review for your business. VAT Compliance and Analysis software. Free VAT help or get your business VAT registered with 1stopVAT. - Published: 2019-02-17 - Modified: 2025-03-20 - URL: https://1stopvat.com/contact/ Fill out this form Or book a call --- ### Expert support for indirect tax compliance > 1stopVAT automated VAT compliance solution for e-commerces and distant sellers. Your Single Point of Contact for international tax compliance - Published: 2019-02-16 - Modified: 2025-05-07 - URL: https://1stopvat.com/ Trusted by When your business goes global it's crucial to comply with Value Added Tax (VAT) regulations. Charging VAT during sales and paying it based on the customer's location can be complicated. We are here to simplify this process for you! More about VAT 1 VAT registration With our complete registration services, your business can be registered anywhere in the world, even where this process can be tricky and regulations vary. Read more 2 VAT filing Once your business obtains a VAT number in a country, it's important to file periodic VAT returns to remain compliant with local regulations. Our team can ensure on-time reporting and submissions. Read more 3 VAT consulting Have questions or concerns about VAT compliance? No problem! We're here to solve any issue, answer any question or back-up your business in any situation when it comes to taxes matters. Read more Why us? Working with 1stopVAT made things so much easier for us at Surfshark. They guided us through the VAT registration process smoothly and even connected us with the right partners when we needed extra help. Their efficiency and support took a lot of stress off our shoulders, boosting our efficiency, reducing costs, and supporting our business expansion while ensuring compliance. Surfshark 1stopVAT delivered comprehensive VAT management services for us, expertly handling our compliance processes across multiple regions. They managed our VAT compliance with great care, recovering key registration details and ensuring we were fully covered. Their proactive approach saved us both time and money.... --- ### We're here for you. Anywhere. Anytime. > 1stopVAT is solution for automated VAT compliance. Your single point of contact for VAT registrations, filing and tax compliance advisory services - Published: 2019-02-16 - Modified: 2025-04-29 - URL: https://1stopvat.com/about-us/ Our commitment is to provide top-notch VAT compliance services and innovative solutions that give our clients the ability to run their operations more efficiently. We understand that to truly sprint, businesses need more than just good shoes but also a clear and stress-free mind that allows them to focus on what’s important. That’s why we aim to take care of VAT compliance, freeing our clients to concentrate on the core aspects of their business. By doing so, we help create a better future for all, as thriving businesses have a positive social and economic impact. Born from an idea in 2020, 1stopVAT rapidly transformed into a highly successful live product. Today we are one of the fastest-growing tax compliance startups. We have 800 clients and counting, we confidently process more than 12,000 VAT returns each year and operate in over 100 locations globally. Dive into our customer case studies --- --- --- ## Posts ### Taiwan - VAT Registration Threshold Increased for Foreign Providers of Digital Services  > Explore Taiwan's updated business tax for non-resident digital services, including a higher registration threshold and key compliance rules. - Published: 2025-05-06 - Modified: 2025-05-06 - URL: https://1stopvat.com/taiwan-vat-registration-threshold-increased-for-foreign-providers-of-digital-services/ - Article content types: Blog post - Business fields: Digital services The Ministry of Finance of Taiwan has adopted an Order introducing amendments to the Regulation on the Levy of Business Tax on Cross-Border Electronic Service Transactions. The amendment modifies the mandatory registration threshold for non-resident digital service providers.   Timeline  The amendment was published on April 7, 2025, and took effect on the same day.   VAT Threshold Changes  The amendment increased the annual threshold for non-resident providers of digital services. Before the adoption of the Order, the annual-sales threshold was NTD 480,000. The increased threshold, which should be taken into account when determining whether a taxable person is obligated to register, is now fixed at NTD 600,000.   Impact for Foreign Digital Service Providers The decision of the Ministry of Finance to increase the annual sales threshold for non-resident providers of digital services was primarily based on the following two parameters:  To equalize the registration threshold for both domestic and foreign providers of digital services;  To reduce the compliance costs for small businesses. Compliance challenges  This important change to the registration threshold should be carefully considered by both registered and non-registered foreign digital service providers. The impact of these changes could be observed in the following: Small registered businesses can deregister under new rules if their annual turnover is below the new threshold, resulting in lower compliance costs.   Economic operators providing digital services to customers in Taiwan should be aware of the latest threshold for determining whether they are required to register.   Taiwan VAT compliance  Foreign providers... --- ### Canada - Cross-Border B2C Supply of Digital Services  > Learn Canada's cross-border B2C digital service rules, including GST registration, compliance, and tax duties for non-resident providers. - Published: 2025-04-29 - Modified: 2025-04-29 - URL: https://1stopvat.com/canada-cross-border-b2c-supply-of-digital-services/ - Article content types: Blog post - Business fields: Digital services - Countries: Canada Canada belongs to the group of countries that have incorporated special place-of-supply rules into their indirect tax frameworks for the provision of digital services by non-resident providers. The place of supply rules for B2C transactions related to digital services and intangible personal property are determined following the destination-based principle.   Non-resident providers of digital services or intangible personal property should be registered for Canada GST when the stipulated threshold for the particular GST scheme is reached. A non-resident provider of digital services or intangible personal property could register for GST under the simplified or normal GST scheme. Considering that a significant number of non-resident providers of digital services supply their services through digital platforms, the responsibility for tax charging and collection could differ, depending on who is determined to be a tax-responsible person under Canada's GST rules.   In situations where a GST/HST-registered non-resident provider of digital services makes its supplies directly to customers based in Canada (B2C transactions), the responsibility for GST compliance remains solely with them. On the contrary, when the digital platform operator facilitates the supply, the tax responsibility could be transferred to the registered platform operator.   For better understanding and clarification, please refer to the flowchart shared below. If you are interested in learning more about Canada's GST rules and regulations, please refer to our Canada tax guides, which provide a detailed review of the GST/HST regime governing federal Canada, participating provinces, and provinces that have their own sales tax rules.   How to stay... --- ### Japan - Cross-border Supplies of Electronic Services: Specifics B2C and B2B transactions > Explore the latest changes to Japan's Consumption Tax Act (JCT) and what they mean for foreign providers of cross-border digital services. - Published: 2025-04-22 - Modified: 2025-04-22 - URL: https://1stopvat.com/japan-cross-border-supplies-of-electronic-services-specifics-b2c-and-b2b-transactions/ - Article content types: Blog post - Business fields: Digital services - Countries: Japan Japan belongs to the group of countries that have implemented, in the first legislative wave, a specific indirect tax framework for the providers of cross-border electronic services. The rules have been in force since October 1, 2015. The amendment to the Consumption Tax Act revised the place-of-supply rules for the provision of cross-border electronic services. The respective Ministry of Finance recognized the need at that time to revise the place of supply rules, from the initial supplier’s principle to the destination-based principle.   According to the Japan Consumption Tax Act, for the provision of cross-border electronic services, the place of supply is Japan, when the customer (for B2C) supplies has it’s domicile or residence in the country; while for B2B supplies the place of supply is within the country when the location of the head office or the main office is in the country. To eliminate some of the doubts when it comes to the interpretation of what “electronic services” or what type of provision is B2C or B2B (due to the specifics of the Consumption Tax Act), a few revisions have been made later on. The Parliament adopted the latest significant changes in March 2024, and they came into effect on April 1, 2025. The concept of the digital platform operator has been revised, and the introduction of full JCT liability for digital platform operators has come into effect for the first time.   Specifics of the JCT system for B2C and B2B transactions  B2C cross-border electronic services  According... --- ### Italy - Revenue Agency vs US BIG tech > Unpack Italy’s bold VAT claims against Meta and LinkedIn, and see how this dispute could reshape digital service taxation across the EU. - Published: 2025-04-15 - Modified: 2025-04-25 - URL: https://1stopvat.com/italy-revenue-agency-vs-us-big-tech/ - Article content types: Blog post - Business fields: Other - Countries: Italy The Italian Revenue Agency has initiated one of the major tax disputes against US big tech this decade. Based on its preliminary VAT reviews, it has issued VAT demands to Meta, X (formerly Twitter), and LinkedIn for a combined value of approximately one billion EUR. To be more precise, it expects VAT payments of EUR 900 million from Meta, EUR 140 million from LinkedIn, and EUR 12. 5 million from X.   The contention is based on the Revenue Agency's claim that the nature of the exchange services between the platform and the user cannot be treated as a tax-exempt transaction but rather as a VATable one. This trade is based on the e-services the platform provides to the user in exchange for the user’s data. Regulatory Scope  The claim of the Revenue Agency that the digital services offered by the platforms mentioned above cannot be treated as tax-exempt (the exchange of the user’s data for the platforms' e-services), but rather should be treated as taxable transactions subject to the VAT rate of 22%.   The Agency considers the provisions of Article 11 of the VAT Law, which states that exchanges of intangible assets, in the disputed case, the access to services for data, should be taxable. The claims of the tax experts from the Revenue Agency aren’t focusing much on trying to explain whether the “shared data” in this case has a value, but rather that this value is “paid” with an e-service.   The technical expert report from... --- ### Amazon - Success Story of an E-commerce Leader in 2025 > Discover Amazon's business empire - its e-commerce dominance, diverse revenue streams, and global market challenges. - Published: 2025-04-10 - Modified: 2025-04-10 - URL: https://1stopvat.com/amazon-success-story-of-an-e-commerce-leader-in-2025/ - Article content types: Article - Business fields: Other One of the first thoughts that most individuals have when they think about Amazon is e-commerce. Most of the global population has heard about Amazon's e-commerce business, its dominance in online retail, and related third-party sales facilitated through its platform.   However, this e-commerce behemoth is much more than a dominant player in the e-commerce industry. Amazon is a multifaceted and sophisticatedly integrated enterprise with more than a few well-developed revenue sources. In this article, we will share insights about the structure of the Amazon business portfolio and then proceed with remarks concerning the firm's financial performance in the previous period.   We will finalize the review with the concluding remarks about challenges that the company needed to overcome to reach this level of dominance, and what the future holds for the e-commerce giant.   Amazon Sources of Income  As indicated previously, Amazon's multifaceted structure is an excellent example of how an international business can thrive in different business environments. The scope of the various business models that form part of Amazon has all contributed to establishing Amazon as a dominant worldwide market player in more than one sector.   If we take a bold step into reviewing Amazon's financial reports, we will become familiar with the diverse income sources that have unquestionably and collectively contributed to the establishment of Amazon as a major force in various business sectors.   The following income sources differentiated per business category are the main fragments of Amazon’s business empire:  1. E-commerce: The focal... --- ### EU - Place of Supply Rules for Intra-EU Distance Supplies > Learn about the updated Place of Supply Rules for Intra-EU Distance Supplies and how the destination-based tax principle applies to eCommerce. - Published: 2025-04-04 - Modified: 2025-04-25 - URL: https://1stopvat.com/eu-place-of-supply-rules-for-intra-eu-distance-supplies/ - Article content types: Blog article - Business fields: Other The eCommerce package that came into force on July 1, 2021, introduced new tax provisions and related interpretation of rules when it comes to determining the place of supply for intra-community distance sales of goods.   The scope of the transactions that are part of the intra-EU distance sales of goods is extensive. The elementary parameters that should be primarily reviewed to eliminate at first glance the transactions that are outside the scope are the ones indicated below:  Intra-EU supply of goods occurs when goods are dispatched or transported from one Member State to another; The supplier should be directly or indirectly part of the transportation or dispatch; Customers are natural persons or expressly indicated types of legal persons. The orders of goods are typically made through the following channels:  Mail order; Phone or tele-sales; E-commerce orders (different internet channels,e. g. ,websites, web portals). The e-commerce taxability rules for Intra-EU supplies of tangible goods physically transferred to the customer in a different Member State are defined according to the destination-based principle. Practically speaking, the place of supply is the Member State where the customer receives the goods.   The only exception to this general rule is the possibility for the EU-established supplier that hasn’t reached the intra-EU distance sales threshold to tax the transaction under local rules. The supplier that hasn’t reached the uniform EU-wide threshold could charge and report VAT according to the domestic regulations.   The introduction of the eCommerce package in 2021 has significantly reshaped the place of... --- ### US – Key Sales Tax Changes for 2025 > Learn about key US sales tax changes for 2025, including updates on economic nexus, retail delivery fees, digital services, and new tax rates. - Published: 2025-04-03 - Modified: 2025-04-25 - URL: https://1stopvat.com/us-key-sales-tax-changes-for-2025/ - Article content types: Blog post - Business fields: Other The year 2025 has brought many significant changes regarding sales tax compliance in the U. S. The scope of novelties already introduced and those that will be effective in the following months impact the economic nexus calculations, the introduction of retail delivery fees, the expansion of the scope of what is treated as a digital service, and new sales tax rates.   The wave of legislative changes in sales tax will impact different categories of businesses and customers. Economic nexus calculation threshold changes will positively affect many small e-commerce or digital retailers.   Economic Nexus Thresholds 2025 After the landmark Supreme Court decision in 2018 and the introduction of the economic nexus concept to expand the tax base and capture out-of-state sellers (mainly e-commerce vendors and marketplaces), the US tax system has entirely reshaped itself, state by state.   In most cases, the trigger that activates the economic nexus on the state level, which automatically necessitates the vendor or marketplace to register for sales tax, is based on two different kinds of threshold calculations. The first triggering event is based on the calculation of gross sales made in the state, and the second(if adopted) is based on the number of transactions made in the respective state.   The second triggering event (the number of transactions) hasn’t been introduced in all US states. The threshold calculation for sales tax registration expands the scope of applicability to most small retailers, even if they don’t reach the gross sales threshold. The costs of... --- ### Dominican Republic - VAT on Foreign Digital Platforms 2025 > Explore the Dominican Republic's digital economy, VAT changes for foreign service providers, and key compliance updates. - Published: 2025-03-31 - Modified: 2025-04-25 - URL: https://1stopvat.com/dominican-republic-vat-on-foreign-digital-platforms-2025/ - Article content types: Blog post - Business fields: Digital services - Countries: Dominican Republic The President of the Dominican Republic signed on January 17, 2025, Decree 30-25, which introduced the obligation for foreign providers of digital services to charge, collect, remit, and pay ITBIS (local VAT) to the Internal Revenue Office. The presidential decree also mandated that digital service providers register for ITBIS and submit informative reports on their transactions when the conditions were met. The decree introducing ITBIS to provide digital services should have been enacted in July 2025.   However, the enactment of this significant tax decree reached a blocking point when the president signed a new repealing presidential decree, only 45 days after the initial one. Timeline  The repealing Presidential Decree, published on March 3, 2025, repeals for an undetermined period the applicability of Decree 30-25, which established the obligation for non-resident digital service providers to charge ITBIS on providing these services to local customers.   Regulatory Framework - Digital Services  The Dominican Government was looking into solutions to successfully tackle the rise of the digital economy and the connected impact on competitiveness with traditional businesses. The rise of the digital economy and the e-commerce sector shows that foreign service providers are becoming a predominant force when providing different digital services.   The rise of the digital services sector is significantly impacting local service providers. Local service providers are obliged to register for Income tax, Tax on the Transfer of Industrialized Goods and Services (ITBIS), while foreign platform operators are “free” of this obligation.   Decree 20-45 was adopted to tackle... --- ### Germany - TikTok Launches its TikTok Shop and Prepares the Roll-Out of the FBT Service > Discover how TikTok is reshaping e-commerce in Germany with TikTok Shop and the upcoming FBT service for sellers. - Published: 2025-03-18 - Modified: 2025-03-18 - URL: https://1stopvat.com/germany-tiktok-launches-its-tiktok-shop-and-prepares-the-roll-out-of-the-fbt-service/ - Article content types: Blog article - Business fields: Other - Countries: Germany TikTok is one of the world's most important and influential social media platforms. The app was launched in September 2016 and has significantly impacted the social media landscape, in which Facebook and Instagram primarily govern.   Like other social media platforms, TikTok is continuously supervised by state regulators because of the predominant concern about the related use of the personal data it gathers from its users. The majority of TikTok ownership is controlled by the Chinese technology company ByteDance. This is “used” as one of the additional reasons for raising concerns about the level of protection of personal data gathered, stored, and shared by the platform operator.   The social media platform TikTok developed a TikTok shop to increase its impact, reach, and profit margin. The TikTok shop represents an electronic marketplace through which marketplace sellers could sell their products to customers residing in different parts of the world.   TikTok's e-marketplace is integrated with the original social media platform, combining “two” different types of digital platforms to create social commerce. As an e-marketplace, TikTok shop is primarily defined as a content-driven e-marketplace. This is one of the significant differences between TikTok shops and Amazon or Walmart.   TikTok has been active in different world regions, such as Asia, the U. S. , the U. K. , and recently Ireland. To expand its reach into European markets, it has decided to open the Germany-based TikTok warehouse services for sellers. E-commerce fulfillment by TikTok shop as an all-around service for marketplace... --- ### EU - Council Adopts Reconciled Version of the VAT in the Digital Age  > The EU Council's adoption of the VAT in the Digital Age package transforms VAT regulations, enhancing compliance in the digital economy. - Published: 2025-03-13 - Modified: 2025-03-13 - URL: https://1stopvat.com/eu-council-adopts-reconciled-version-of-the-vat-in-the-digital-age/ - Article content types: Blog post - Business fields: Digital services - Countries: Europe March 12, 2025, will be remembered as a game-changing day for the EU VAT framework. After more than two years of negotiations, the EU Council has given a long-awaited green light to adopt the VAT in the Digital Age (ViDA) package.   VAT in the Digital Age package represents one of the most notable reforms of the EU VAT system. The digitalization of the economy and technological advancements have shown the necessity of updating tax provisions that are not in alignment with new business models that emerged in the last few years.   The ViDA package has three separate pillars. The first pillar is devoted to reforming intra-EU VAT reporting, the second regulates the Platform Economy, and the third introduces significant changes in the OSS simplified registration and reporting system.   The Commission presented the VAT in the Digital Age package in December 2022. The package includes three proposals to amend two regulations and the EU VAT directive. These amendments aim to align these three main pieces of VAT legislation with the digital transformation of the EU economy.   Background The above mentioned proposals were designed to amend the following legislation:  Proposal for a Council directive amending Directive 2006/112/EC as regards VAT rules for the digital age; Proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age; Proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 regarding information requirements for specific VAT schemes. Adopted ViDA... --- ### US - What is the Future of Digital Services Tax and BEPS Rules > Delve into the future of US policy on Digital Services Tax and BEPS rules.Explore the OECD tax deal and its impact on American tech companies. - Published: 2025-03-05 - Modified: 2025-03-05 - URL: https://1stopvat.com/us-what-is-the-future-of-digital-services-tax-and-beps-rules/ - Article content types: Blog post - Business fields: Digital services In October 2021, the members of the OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) agreed on a two-pillar solution to update the international tax rules as a logical consequence of the rise of the digital economy.   More than 130 countries have agreed to the outline of the new international corporate tax rules. They have uniform regulations tailored to stipulate that any excess profits of these tech giants should be taxed at the minimum of 15% in any jurisdiction where they operate. The two-pillar inclusive tax framework, set in motion by the agreed parties, the introduction of “Global Tax Deal” by which it will be ensured that large multinational corporations pay a minimum level of tax on the income arising from each jurisdiction where they make their supplies.   The accession to the agreed framework of the Global Tax deal isn’t mandatory by the members of the OECD, however, if they decide to introduce it through domestic legislation, the common rules should be followed.   One of the first major decisions of the U. S. The President is to withdraw the U. S. from the “Global Tax Deal”, an international tax deal that paved the way for introducing the digital services tax and the like on the income of the multinational corporations. Many of these multinational corporations are U. S. based. The President stated the GloBE Model Rules were “not-friendly” towards the U. S. tech giants, but they are tailored to limit their growth. The President issued... --- ### US - Announced increase of the EU import tariffs > President Trump proposes 25% tariffs on EU imports - find out how this could impact the economy and consumers. - Published: 2025-03-04 - Modified: 2025-03-04 - URL: https://1stopvat.com/us-announced-increase-of-the-eu-import-tariffs/ - Article content types: Blog post - Business fields: Other The U. S. president signed an executive order last January, delegating to a group of technocrats to review trade practices and policies with selected trade partners and to issue recommendations for the new tariff system. The initial deadline for submission of reports is April 1, 2025.   A week ago, President Trump announced a plan to introduce import tariffs of 25% on imports from the European Union - the US-EU bilateral trade forms from the revenue perspective, globally, the most international trade relationship. The average import tariff value for EU exports to the U. S. is 1% - total annual imports from the EU account for EUR 500 billion. Based on the surveyed analysis of potential increase of tariffs accompanied by other “hypothetical” measures, such as retaliatory tariffs response, reduced imports, the U. S. federal government will increase its budget from the EU based duties yearly for approximately EUR 50 - 60 billion. The EU officials have responded to the announced U. S. import tariff measures, saying that if the introduction of proposed “severe” tariffs, from their leading trading partner becomes a reality, the EU would respond reciprocally, to protect EU businesses, consumers, and economy.   If the U. S. proposed tariffs against the EU exports, they would become a reality, and the effects would be seen in an increase of the EU imports, a reduction of exports, and higher prices for U. S. consumers.   Stay tuned.   Aleksandar Delic1stopVAT Indirect Tax Manager - E-Commerce --- ### Niger - VAT on Digital Services From 2025 > Niger introduces a 19% VAT on digital services in 2025, affecting local and foreign providers in e-commerce and streaming. - Published: 2025-02-25 - Modified: 2025-02-25 - URL: https://1stopvat.com/niger-vat-on-digital-services-from-2025/ - Article content types: Blog post - Business fields: Digital services The Council of Ministers, on December 31, 2024, adopted the draft ordinance on the Finance Law for 2025. The structure of the draft version of the Finance Law, in the part devoted to taxes, clearly indicates the vision of reviving the national economy. The various tax provisions support this vision, which should increase the population's spending power, tax new sectors, and equalize the playing field between foreign and local businesses.   The adopted draft Finance Law 2025 introduces the VAT regime for online sales transactions. There is no distinction between local and foreign providers of digital services.   Timeline  There is no clear indication of the effective date of the tax provision that mandates the VAT regime's introduction for online vendors. New Framework  Rules and Regulations  Through Finance Bill 2025, the Niger Government proposed the introduction of VAT on digital services when the place of supply is deemed to be in Niger. There is no differentiation between domestic and non-resident digital service providers. Both groups should be liable for local VAT at 19%.   Based on the provisionary note, this obligation should cover B2C supplies, while B2B should be reported under a reverse charge regime.   On the same note, the following types of digital services should be under the scope of the new VAT regime:  E-commerce transactions (tangible provides through e-marketplaces);  Supplies of low-value goods; Streaming services;  Cloud-based services;  Downloads of apps, music, software; Access to online databases; Digital platforms.   Considering the introduction of the VAT regime for... --- ### Philippines - Cross-Border VAT Regime for Non-Resident Digital Services Providers > Explore the Philippines' VAT on digital services, effective February 1, 2025, with key compliance guidelines for local and foreign providers. - Published: 2025-02-21 - Modified: 2025-02-21 - URL: https://1stopvat.com/philippines-cross-border-vat-regime-for-non-resident-digital-services-providers/ - Article content types: Article - Business fields: Digital services - Countries: Philippines The reconciled version of the Republic Act. No. 12023, signed by the President last October in a taxative line, indicated the timeframe under which the regulations, rules, and policies should be issued to support the implementation of the mentioned Act that introduced the Philippines VAT on digital services providers by non-resident service providers. The Department of Finance issued Revenue Regulation No. 003-2025 (implementing Act) on January 16, 2025, which sets the policies and guidelines on how the Philippines digital services tax framework will be established and how it will function for domestic and foreign providers of digital services and digital goods. It shouldn’t be forgotten that the idea of introducing a specifically designed tax framework for foreign providers of digital services and goods has a long history. It took several years to arrive at this point where the Department of Finance and Bureau of Internal Revenue (BIR) are making the last steps for establishing the specifically designed, simplified tax reporting system for non-resident VAT compliance Philippines. Timeline  The implementing Revenue Regulation came into force on February 1, 2025.   New framework  Taxable persons under the new Rules The Revenue Regulation additionally clarifies that under the governing rules of the Philippines Digital Services Tax 2025, the taxable persons obliged to operate in compliance with the new rules are domestic and foreign digital service providers. The requirements also cover natural or legal taxable persons. Under the scope of the new rules for the cross-border supply of digital services, we can see the... --- ### EU - Digital Reporting Regime after Parliament Approves Draft Legislation ViDA 2025 > Discover the ViDA 2025 reform, enhancing digital VAT reporting and streamlining compliance for businesses in the EU. - Published: 2025-02-19 - Modified: 2025-02-19 - URL: https://1stopvat.com/eu-digital-reporting-regime-after-parliament-approves-draft-legislation-vida-2025/ - Article content types: Blog post - Business fields: Digital services - Countries: Europe On February 12, 2025, the EU parliament approved the draft version of the VAT in the Digital Age (ViDA) initiative. Before this event, last November, the agreement by the Ministers of Finance was reached on this three-pillar-based reform.   The approval by the Parliament of the VAT in the Digital Age reform is a milestone of significant progress towards one of the most important reforms of the EU VAT regimes in the last decades. The approved draft legislation that will amend the EU VAT Directive has been passed to the EU Council for review as the mandatory step for adopting these types of legislation.   The adopted three-pillar-based ViDA package culminates more than three years of dedicated work by various stakeholders. One of the main goals for introducing a reform of this magnitude is reducing the EU VAT gap.   The three pillars upon which the reform is based cover the introduction of mandatory intra-EU B2B digital reporting requirements based on e-invoicing; enhancement as well as reinforcement of the legislative framework for platform economy; and implementation of the single VAT registration system to reduce bureaucratic challenges for SME’s that operate in more than one Member State.   Introducing a digital reporting system that should cover all intra-EU B2B transactions is, technically and from the investment perspective, a most demanding part of the ViDA puzzle. It encompasses a shift to digital VAT reporting and structured e-invoicing across the entire EU by July 2030.  In the scheme below, you can get familiar... --- ### Burkina Faso - VAT Rules for E-commerce Marketplaces 2025 > Burkina Faso's 2025 VAT rules target foreign e-commerce providers, ensuring transparency and compliance in the growing digital market. - Published: 2025-02-14 - Modified: 2025-02-14 - URL: https://1stopvat.com/burkina-faso-vat-rules-for-e-commerce-marketplaces-2025/ - Article content types: Blog post - Business fields: Other - Countries: Burkina Faso We are witnessing rapid growth of the e-commerce sector in Africa. This is one of the main reasons why more and more countries are mandating the introduction of the VAT regime for foreign providers of digital services or digital goods (intangible products).   Various expert surveys conducted by world-renowned analysts unquestionably agree on one point: the pace of the e-commerce sector and the digital economy will continue to grow in this decade. The business environment in Burkina Faso hasn't been isolated from this trend.   The Government of Burkina Faso, has acknowledged that the current legislative VAT environment previously established for foreign providers of digital services or e-commerce suppliers isn’t working how it should be. The lack of transparency, technical infrastructure, simplified registration, and reporting systems contributes to the “non-willingness” of these providers to voluntarily register for VAT.   However, the adopted draft of the Finance Bill for 2025 shows the willingness of the Government to regularize the e-commerce sector with transparent and practical rules for non-resident providers (suppliers and platform operators).   Timeline  The National Assembly adopted the draft Finance Act 2025 during the plenary session held during the last week of December 2024. The new rules came into force on January 1, 2025.   VAT on Digital Services What does the future hold? Present rules reviewed from the theoretical perspective, provide support for taxing non-resident providers of digital services or intangible-remote goods. The General Tax Code addresses this under the territoriality rules for applying local VAT.   Moving... --- ### Italy - New Rules for Reporting of Digital Services Tax 2025 > Italy's 2025 digital services tax updates remove subjective criteria, making liability turnover-based, with a new two-step payment system. - Published: 2025-02-05 - Modified: 2025-02-05 - URL: https://1stopvat.com/italy-new-rules-for-reporting-of-digital-services-tax-2025/ - Article content types: Blog post - Business fields: Digital services The Budget Law for 2025 introduced significant changes concerning the Digital Services Tax. The Digital Services Tax (Web Tax) was introduced in Italy in 2018 through tax provisions. The last effective version of this type of tax was in place until the adoption of Budget Law 2025. The tax on digital services introduced through Budget Law 2018 set up the framework for a collection of the Web Tax at 3% on the turnover that digital giants (such as Meta and the likes) generated by providing digital services to customers based in Italy.   The provisions of Tax on Digital Services that defined the calculation metric for the digital platform operators were based on two pillars: objective and subjective. However, introducing the Budget Law for 2025 eliminates the subjective parameter.   Let’s dive into the specifics of this significance for social media platforms when it comes to the structure of the tax collection framework. Digital Services Tax Italy  Implication of changes  The pivotal principle states that for revenue to be taxable under the Italian Digital Services Tax, the revenue generated from the provision of digital services must be located in the territory of Italy. Using different validator tools via the digital interface is possible to identify the user's location.   As mentioned above, adopting new provisions reshapes the tax framework of digital interfaces. Before the adoption of the amendments, the Italian Revenue Agency, to be in the position to tax digital platform operators with the gross receipts tax, needed to be... --- ### China - New VAT Law and Modernization of VAT system > Uncover the details of China's new VAT Law, effective January 1, 2026, designed to streamline tax collection and align with global standards. - Published: 2025-01-29 - Modified: 2025-01-29 - URL: https://1stopvat.com/china-new-vat-law-and-modernization-of-vat-system/ - Article content types: Blog post - Business fields: Other - Countries: China On December 25, 2024, the Standing Committee of the National People’s Congress adopted the VAT Law. The promulgation of the VAT Law will significantly reshape China's indirect tax framework. The law is consistent with previous reforms, maintaining the three-tier tax rate system. At the same time, it modernizes its concept through different provisions that align with internationally accepted standards.   The importance of the VAT regime can be quickly concluded based on its contribution to national coffers. The latest data shows that more than a third of the national revenue derived from taxes belongs to the VAT. The introduction of the VAT Law and modernization of the tax framework is the logical next step to make tax collection less burdensome and the business environment more international. Timeline The VAT Law will come into effect on January 1, 2026.   New Regulatory Framework The adopted VAT Law retains a significant part of the already established practice, maintaining the three-tier tax rate system and introducing new provisions reflecting the modernization and standardization following the worldwide accepted perspective on different VAT-related concepts.   The VAT Law is based on the following three-tier tax rate system:  Standard rate - 13 % for the supply of goods, provision of different types of services, import of goods, and lease of tangible movable property; Reduced rate - 9% for provision of different kinds of services, import of goods( indicated list), supplies of printed and e-books, and other; Reduced rate - 6% for provision of services(except those for... --- ### EU - VAT Reporting for Live Virtual Events 2025 > Starting January 1, 2025, EU Directive 2022/542 introduces destination-based VAT rules for live virtual events. - Published: 2025-01-28 - Modified: 2025-01-28 - URL: https://1stopvat.com/eu-vat-reporting-for-live-virtual-events-2025/ - Article content types: Blog post - Business fields: Other - Countries: Europe Starting from January 1, 2025, Council Directive (EU) 2022/542, adopted in April 2022, came into effect. This EC directive introduces significant changes concerning the place of supply rules for live virtual events. This change will substantially impact the providers of live virtual events whose place of business is within or outside the EU but have customers based or residing in the Common Market.   Providers of live virtual events, mainly streaming providers, who offer online services for accessing the virtual streaming of live events, such as attending online live conferences, seminars, webinars, training, and distance learning programs with live elements, should be aware of new VAT rules concerning the provision of these types of “digital services. ”  Considering the rapid growth of this section of the e-commerce space, thousands of providers of online streaming services will be impacted by the new measures. The online streaming services platforms whose place of business is, e. g. , the United Kingdom(UK), should be aware that if their customer is based in one or more of the Member States, they should follow the destination-based principle for reporting purposes.   This means that if the UK provider of online B2C streaming services of live conferences accepts and processes payments from customers based in Italy and Germany, the place of supply, according to the EU rules of the respective services, will be Italy and Germany. Additionally, this means that the UK provider should follow new rules for place of supply, defined following the EC Directive mentioned... --- ### Digital Platforms Tax Compliance Mexico > Explore Mexico's digital platform tax rules. Learn about VAT, income tax obligations, and the latest 2025 updates for e-commerce providers. - Published: 2025-01-23 - Modified: 2025-01-23 - URL: https://1stopvat.com/digital-platforms-tax-compliance-mexico/ - Article content types: Article - Business fields: Other - Countries: Mexico In June 2020, to combat the challenges of the emerging digital economy, Mexico implemented tailor-made tax provisions for e-commerce operations, processed through intermediation services governed by the digital platform operator. The digital platform regime is designed to regulate the provision of services and sale of goods through technological platforms such as Uber, Airbnb, Amazon, Mercado Libre, and others. The newly established rules acclaimed by domestic competitors and public institutions mandated that foreign providers of cross-border digital services register and collect VAT when they provide digital services to recipients located in the country. When the digital platform, being domestic or foreign, alongside the provision of digital services, facilitates the supply of services(between third-party suppliers and recipients), it will be obliged to withhold income tax and VAT from service providers.   To underscore this initial point, withholding income tax and VAT for platform intermediation services doesn’t just cover third-party providers of digital services and the obligation to withhold income tax and VAT from supplier goods (when the goods are sold via digital platforms). Adopting the digital platform regime resulted in great success for Mexican tax authorities. This system introduced a new tax collection system, which was a necessary move, considering the growth levels of the country's e-commerce market. Taxability Frameworks Taxpayers in scope Direct providers Resident and foreign providers of digital services or goods to recipients based in Mexico through the Internet, technological platforms, and other applications. The providers of digital services or goods offered through the digital platform (via the usage... --- ### Liechtenstein - Deemed Supplier Rules for Electronic Platforms > Discover Liechtenstein's new VAT rules for electronic platforms, effective January 1, 2025, with key tax responsibilities for businesses. - Published: 2025-01-20 - Modified: 2025-01-20 - URL: https://1stopvat.com/liechtenstein-deemed-supplier-rules-for-electronic-platforms/ - Article content types: Blog post - Business fields: Other - Countries: Liechtenstein Based on the VAT treaty between Switzerland and Liechtenstein, Liechtenstein incorporated the VAT amendments previously adopted by the Swiss Parliament into its national law. A partial revision of the Swiss VAT Act, adopted in June 2023, introduced the VAT liability for electronic platforms that facilitate supplies of goods to customers based in the country.   To address this important tax provision, Liechtenstein has adopted the amendment of the VAT Act. This amendment introduced new rules for electronic platforms, new place of supply rules for providing services, and other VAT-concerned measures.   Timeline The amendment of the VAT Law came into effect on January 1, 2025.   Electronic Platforms and Tax Collection  Impact and Changes  New VAT rules in Liechtenstein introduce tax responsibilities for electronic platforms that facilitate the supply of goods and other non-VAT-exempt deliveries. Domestic electronic platforms become liable for VAT collection if they reach the annual threshold of CHF 100,000 for attributable deliveries of goods and other sales not exempt from VAT. Foreign electronic platforms (under distance sales rules) become VAT collectors if they generate more than CHF 100,000 from the delivery of low-value goods or if they are considered importers of record based on the declaration of subordination.   An electronic platform that is VAT registered becomes responsible for VAT collection instead of the third-party providers, who are, from the “civil” law perspective, actual suppliers. This derogatory provision introduces two separate transactions:  Sale from supplier (underlying supplier) to electronic platform (this supply is treated as VAT-exempt or... --- ### Guinea-Bissau - Introduction of the VAT regime > Discover the evolving VAT landscape in Guinea-Bissau, as the country transitions from IGV to a modern VAT regime starting January 1, 2025. - Published: 2025-01-14 - Modified: 2025-01-14 - URL: https://1stopvat.com/guinea-bissau-introduction-of-the-vat-regime/ - Article content types: Blog post - Business fields: Other - Countries: Guinea-Bissau The number of countries that are implementing the VAT regime is continuously growing. Guinea-Bissau is one of the latest countries in the African region to adopt this type of indirect tax framework. This West African country has set the first tangible path towards introducing the modern VAT regime at the beginning of 2022 through Law no. 4/2022.   More than two years later, in October 2024, the Ministry of Finance adopted the missing implementing Decree that sets the terms and conditions for introducing the VAT regime.   Timeline  The starting date for the implementation of the VAT regime was set at January 1, 2025.   VAT Framework and Impact  The General Tax on Sales and Services (IGV) has existed since the 1990s. Even though introducing this type of tax brought many benefits to the state coffers, the deficiencies related to its implementation and contributions to the overall business environment showed the necessity for modernization and replacement. The shift from IGV to VAT was a logical step towards harmonization with the uniform indirect tax model adopted throughout many West African countries. The idea is that, gradually, all economic operators, both local and foreign, should adhere to the VAT regime. The goal is that the playing field for domestic and foreign suppliers of goods or services should be equal. However, the Decree states that this idea will be realized through a phased roll-out of the mandate.   In the first phase, the VAT mandate will cover - local supplies of taxable goods... --- ### Sri Lanka - VAT for Non-Resident Providers of Digital Services from 2025 > Sri Lanka's 2025 tax reforms introduce VAT on foreign digital services, ensuring fair competition and aligning with global standards. - Published: 2024-12-24 - Modified: 2024-12-24 - URL: https://1stopvat.com/sri-lanka-vat-for-non-resident-providers-of-digital-services-from-2025-2/ - Article content types: Blog post - Business fields: Digital services - Countries: Sri Lanka The President of Sri Lanka has presented a proposal for key tax reforms for 2025 before the national Parliament. One of the principal VAT changes is the introduction of the VAT levy for foreign providers of digital services starting next year.   In the following weeks, the Parliament will consider the 2025 Budget Plan and address the proposed tax reforms. Timeline  Starting April 1, 2025, non-resident providers of digital services will be obliged to charge, collect, and remit VAT for their supplies of electronic services to customers residing in Sri Lanka.   Foreign Providers and Imposition of VAT  After introducing the VAT levy for domestic providers of digital services to local customers, the Sri Lankan government is pushing for additional tax reform considering the scope of taxable persons providing this type of service.   To equalize the service market, the Government, after the discussion with the IMF, is looking to introduce the VAT obligation for foreign service providers(digital service providers and platforms) to charge, collect, and remit local VAT to tax authorities when the service is provided, performed and received in the country.   A standard VAT rate of 18% should be levied on these services. After more than a few Asian countries have introduced this liability for non-resident providers of digital services, Sri Lanka is looking to do the same in the upcoming months.   Besides implementing the VAT system for non-resident providers of digital services, the Ministry of Finance has also proposed the introduction of CIT for these... --- ### EU - Reform of SME Schemes and Simplified VAT Compliance > Explore the EU's 2025 cross-border SME scheme, simplifying VAT rules and exemptions for small businesses operating in multiple Member States. - Published: 2024-12-19 - Modified: 2024-12-19 - URL: https://1stopvat.com/eu-reform-of-sme-schemes-and-simplified-vat-compliance/ - Article content types: Blog post - Business fields: Other - Countries: Europe One of the primary goals behind reshaping the EU SME's legal framework was to introduce a mechanism that would equalize the playing field between domestic and non-domestic EU-established small enterprises regarding their VAT compliance obligations in the Member States(MS) where VAT is due.   The current tax landscape for SMEs is entirely based on the concept of domestic SME schemes. From a VAT perspective, only small enterprises established in the Member State where VAT is due could adhere to the SME scheme. Naturally, the possibility of leveraging from the domestic VAT scheme is reserved only for local small enterprises that fulfill national requirements.   The shift from the place of supply rules, from the origin to destination principle, created significant administrative and compliance difficulties for small enterprises not established in the Member State where VAT is due. This means that they need to follow the tax rules of the MS where VAT is due.   The introduction of the cross-border SME scheme concept from January 1, 2025, will significantly change the rules surrounding the small enterprises established in the EU that make their supplies of goods and services in other Member States.   The cross-border SME scheme concept will permit small enterprises established in one Member State to remain VAT-exempt in one or more MS where they have customers(and in which occasions the VAT is due) if specific mandatory requirements are met.   Principal requisites that SMEs should meet if they plan to make intra-EU supplies that are VAT-exempt could... --- ### Switzerland - Taxation of the E-Commerce Marketplaces 2025 > Stay updated on Switzerland's 2025 e-commerce tax reforms and learn how new VAT rules promote fair competition for local businesses. - Published: 2024-12-16 - Modified: 2024-12-16 - URL: https://1stopvat.com/switzerland-taxation-of-the-e-commerce-marketplaces-2025/ - Article content types: Blog post - Business fields: Other - Countries: Switzerland Swiss authorities have partially revised the Swiss VAT law to decrease the levels of the national VAT gap caused by the non-compliance of foreign e-commerce suppliers. One of the most significant points of this legislative change is modifying the previously adopted framework concerning the indirect tax rules for the e-commerce marketplaces. In 2019, Switzerland introduced the e-commerce regulation, aiming to reduce, ideally eliminate, the unfair competition between local retailers and online suppliers from foreign countries. The introduction of the mandatory registration of foreign online sellers of low-value consignments after reaching a threshold of CHF 100 000 should put aside the disadvantages that existed as a consequence of non-existent, specifically developed tax rules for the non-resident e-commerce sellers.   The adoption of the e-commerce regulation has produced good results, but it could have been better, as data shows. On the other hand, the platform economy has been rapidly extending its influence in the country, and the amount of VAT not collected by Swiss tax authorities has been continuously increasing. The government, guided by the willingness to equalize the playing field between local retailers and foreign online sellers, has decided to extend the mandatory VAT registration duty to the e-commerce marketplace operators.   The idea for introducing the deemed supplier concept for the e-commerce marketplaces has been developed following the EU model for deemed suppliers for online marketplaces concerning the imports of low-value goods.   Timeline  The adopted amendments to the VAT Law shall come into force on January 1, 2025.  ... --- ### EU - Simplified Reporting Under Domestic and Cross-Border SME Scheme > Discover the EU’s new simplified reporting measures for SMEs, including the domestic and cross-border SME schemes, effective January 2025. - Published: 2024-12-11 - Modified: 2024-12-11 - URL: https://1stopvat.com/eu-simplified-reporting-under-domestic-and-cross-border-sme-scheme/ - Article content types: Article - Business fields: Other - Countries: Europe Introduction  The importance of small and micro enterprises in the EU could be withdrawn from Eurostat's yearly statistical articles. Each year, we witness the growth of the number of employees working for SME’s. The continuously growing contribution of SMEs to the revenue that EU institutions gather from collecting the VAT shows how important it is to make this sector less chained with bureaucracy and compliance costs.   The factually supported data indicates that around 50% of all employees within the ranks of EU-established enterprises belong to SMEs. Their contribution to the collection of the EU VAT is around one-third of the entire sum. The level of importance of SMEs for the EU business landscape is, without exaggeration, essential for the prosperity of the entire community.   Introducing this simplified scheme resulted in a massive success regarding regulatory burden reduction for SMEs. The costs that this group of businesses incurred before introducing this simplification scheme showed a significant disproportion between their turnover and compliance costs.   The adoption of the SME scheme reduced this expenditure and permitted the expansion of the SME network within the EU. The SME scheme is widely accepted as a legal concept in most EU countries. The adoption of the SME scheme through the national legislation of Member States permits economic operators to be out of the scope of VAT requirements.   Adherence to the SME’s scheme permits EU-established businesses not to charge VAT on their supplies of goods and services, and this tax relief permits these... --- ### Global - Important VAT Changes 2025 > Explore key global VAT changes in 2025, featuring rate adjustments, digital service taxes, and new compliance rules. - Published: 2024-12-03 - Modified: 2024-12-03 - URL: https://1stopvat.com/global-important-vat-changes-2025/ - Article content types: Article - Business fields: Other The new year will introduce many significant changes within the global VAT landscape. The scope of belated changes is quite broad, covering different pieces of the VAT puzzle. In the table below, you will find 20 important VAT changes for 2025.   It should be considered that shared updates are not exhaustive. There is also a broad spectrum of others that we haven’t included on this occasion. The changes impact different suppliers, from intra-EU goods supplies to digital service providers and introducing deemed supplier liability for digital platform operators. Important VAT Changes - 2025CountryScope of the ChangeEffective DateBulgariaAbolishment of Reduced Rate for catering and restaurant services. Restoration of the usage of the standard VAT rate of 20%January 1, 2025CanadaGST/HST relief on essential supplies(e. g. ,holiday essentials, grocery, restaurant meals)from December 14, 2024, to February 15, 2025EstoniaAccommodation services and accommodation services with breakfast are taxed at a rate of 13% instead of the reduced rate of 9%; Press publications will be taxed at a rate of 9%January 1, 2025EUIntroduction of the new SME schemeJanuary 1, 2025EUIntroduction of the new rules for determination of the place of supply rules for B2C live-virtual eventsJanuary 1, 2025EUAdoption of the final text of VAT in the Digital Age(ViDA) reform2025Guinea-Bissau Implementation of the VAT regimeJanuary 1, 2025 GermanyReduced Rate of 7% for intra-community acquisitions and domestic supplies of works of artJanuary 1, 2025HungaryExtension of E-Invoicing scope to suppliers of electricity and gas within B2BJanuary 1, 2025IndonesiaIncrease of the standard VAT rate from 11% to 12%January 1, 2025IsraelIncrease of... --- ### Poland’s transition to mandatory e-invoicing with KSeF > Discover Poland's National e-Invoicing System (KSeF), its benefits, features, and how businesses can prepare for the transition. - Published: 2024-12-02 - Modified: 2024-12-04 - URL: https://1stopvat.com/polands-transition-to-mandatory-e-invoicing-with-ksef/ - Article content types: Blog article - Business fields: Other - Countries: Poland Poland is taking a significant step toward modernising its tax infrastructure by introducing the National e-Invoicing System (KSeF).   Initially scheduled for mandatory adoption in July 2024, the rollout has been rescheduled to February 1, 2026, for large taxpayers and April 1, 2026, for all other entities. This delay allows businesses more time to prepare for the technical, operational, and compliance challenges associated with the system.   The phased implementation approach ensures that companies can gradually adapt without disruption, reflecting the government’s commitment to a smooth and efficient transition. Key features of KSeF KSeF is designed to standardise invoicing practices across Poland, bringing consistency, transparency, and efficiency to business transactions. Its primary features include: Centralised platform: A government-managed platform where all invoices are issued and processed, ensuring consistency across all sectors. Standardised XML format: Mandatory use of a uniform XML format for invoices enables automated processing and easy integration with enterprise resource planning (ERP) systems. Real-time data access: Immediate access to invoice data for tax authorities, enabling enhanced monitoring and fraud prevention. These features ensure that businesses and tax authorities can benefit from a unified system that reduces inefficiencies and promotes compliance. Benefits of adopting KSeF The adoption of KSeF offers several advantages for businesses and the government alike: Faster VAT refunds: Compliant companies can expect reduced VAT refund times, from 60 days to 40 days. Improved accuracy: Standardised invoice formats minimise errors and discrepancies, streamlining tax reporting. Cost savings: Automation in invoice processing reduces administrative costs and time spent... --- ### VAT Consulting for International Businesses  > Explore VAT consulting for international businesses to ensure compliance and streamline tax management across borders and digital economies. - Published: 2024-11-29 - Modified: 2024-12-03 - URL: https://1stopvat.com/vat-consulting-for-international-businesses/ - Article content types: Article - Business fields: Other From a global perspective, the most widespread type of consumption tax is the Value-Added Tax (VAT). Currently, more than 170 countries have mandated the usage of this type of consumption tax. This type of tax is levied on the value added at each stage of production and distribution of goods and services, while the end consumer ultimately bears the value of VAT. The introduction of this type of consumption tax is gaining increasing attention in countries where it hasn’t been implemented. VAT is an essential source of revenue for most countries. Based on statistical analysis and verified sources, VAT accounts for, on average, between 18% and 30% of total country revenue from taxes.   Without much hesitation, the relevance that indirect taxes have in general, especially VAT, to forming state coffers is undisputably essential to the excellent functioning of state apparatus. Considering these facts, we can imagine how vital VAT is for the well-being of the country's tax revenues. The Ministries of Finance and complementary State institutions focus on reducing the gray economy and the national VAT gap.   This can be done by adopting one or more monitoring instruments, which, thanks to digitalization and technological advancements, exist in much greater numbers today. The introduction of digital reporting tools, collaboration with tax authorities of different countries, cross-border controls of imported goods, withholding tax measures, and many others give tax authorities many choices.   The possibility of tax authorities having at their disposal various tax technological monitoring tools puts additional pressure... --- ### France - Increase of Digital Services Tax 2025 > Learn about France's Digital Services Tax and the proposed 5% increase, impacting major digital providers. - Published: 2024-11-26 - Modified: 2024-12-10 - URL: https://1stopvat.com/france-increase-of-digital-services-tax-2025/ - Article content types: Article - Business fields: Digital services - Countries: France France is among the first countries to adopt the Digital Services Tax on large international digital services providers. The DST is a tax imposed at a single rate on the gross income derived from the supply of certain digital services.   France enacted its DST in July 2019, with a flat rate of 3% on the gross turnover of digital services providers. The “GAFA” tax, as it was initially abbreviated, is now “GAFAM” and is an income-based tax that primarily affects the most impactful digital services companies with clients worldwide and significant market share.   GAFAM tax, a summary of initials from companies with the largest market share in this business sector, i. e. , Google, Amazon, Facebook(now Meta), Apple, and Microsoft, is applicable in France if the likes of the companies above and others in conditions when the registered global turnover of taxable services is above EUR 750 million, and in France above EUR 25 million for certain digital services that are deemed to be placed in the country.   However, 2024 has been a very challenging year for the French budget, so most parties have continuously expressed the necessity of introducing different tax increases to increase public funding for the following year and reduce external debt.   One of the proposed amendments is increasing the flat rate of DST from 3% to 5% starting from 2025. The National Assembly has already adopted this proposal. Now, it remains to be seen whether the bill will pass the final voting... --- ### EU - Guide to Simplified Triangulation Method for VAT Purposes > Learn how the EU VAT simplified triangulation method reduces compliance burdens and simplifies trade for EU businesses - Published: 2024-11-25 - Modified: 2024-12-10 - URL: https://1stopvat.com/eu-guide-to-simplified-triangulation-method-for-vat-purposes/ - Article content types: Blog post - Business fields: Other - Countries: Europe The introduction of the simplified triangulation concept for VAT purposes under the EU VAT Directive simplifies compliance and trade within the EU. The possibility of adhering to and benefiting from this simplified reporting mechanism allows EU-taxable persons to reduce their compliance burden significantly.   Logically, the precisely designed requirements should be met to leverage the simplified triangulation reporting and invoicing mechanism for VAT purposes. Let’s dive into a practical, concise, and well-rounded explanatory guide.   In this supply chain transactions scenario, two EU VAT-registered taxable persons consecutively supply the same goods. Those goods are transported directly from the first supplier in one Member State to the end customer(third party) in the other Member State.   So, to put it more plainly, in the EU VAT triangular transaction, we have three EU VAT-registered taxable persons whose places of business are in different EU countries. The goods are directly transported from the first supplier to the end customer(taxable person based in the third MS).   If the second supplier(intermediary) in this transaction chain can leverage the simplified triangulation in the MS of destination(MS of the end customer), it doesn’t need to register for VAT in the destination country. Without the possibility of adhering to this simplified reporting procedure, the intermediary will need to register for destination country VAT to be able to report intra-community acquisition in that country via ESL report and to make a subsequent domestic supply to the end customer.   Suppose the second supplier(intermediary) can use the simplified triangulation... --- ### Australia - Introduction of Digital Services Tax to Protect Traditional Media Outlets > Delve into the Digital Services Tax proposal in Australia, inspired by models from France, Canada, and the UK. - Published: 2024-11-20 - Modified: 2024-11-20 - URL: https://1stopvat.com/australia-introduction-of-digital-services-tax-to-protect-traditional-media-outlets/ - Article content types: Blog post - Business fields: Digital services - Countries: Australia In 2021, the then-Coalition government adopted a News Media Bargaining Code. This Code introduced an obligation for social media digital platforms(like Meta and Google) to sign agreements with Australian media companies, by which the social media giants are obliged to pay X amount of money to local, traditional media companies for making the usage of their content.  If the social media platform operators choose not to pursue this path, they could be held liable and most probably will be fined. The fine is calculated based on their revenue from Australian customers and is fixed at 10% of the revenue.   One of the principal reasons why the Government introduced this levy for social media platforms is to protect traditional media outlets from being marginalized under the “pressure” from multi-billion dollar social media powerhouses.   However, last March, Meta representatives decided to withdraw from the signed agreement with the Australian government, which implicitly means that the part of their country-based revenue reserved for Australian-based media businesses will be used differently.   Impact on the Social Media Space  Digital Services Tax  We are all aware, to some extent, of the level of influence that social media platforms have on shaping our daily lives. Thanks to the rapid evolution of technology, their impact is becoming increasingly present in all interconnected business sectors.   The influence of social media platforms on traditional media businesses, independent journalists, and small or medium-sized businesses in Australia is of great importance. This is one of the driving reasons... --- ### EU - Council Agrees on the VAT in the Digital Age Reform > Find out how the new EU VAT reform will impact digital businesses and platforms, and how to get ready for the changes coming next year. - Published: 2024-11-13 - Modified: 2024-11-13 - URL: https://1stopvat.com/eu-council-agrees-on-the-vat-in-the-digital-age-reform/ - Article content types: Blog post - Business fields: Digital services - Countries: Europe The European Union institutions have been working intensively in the last couple of years on modernizing the EU VAT regulatory framework, mainly driven by the external factors that have led to the flourishing of e-commerce businesses and the digital economy.   The worldwide shift from mainly offline retail channels to online sales, accompanied by the birth of new business models, required the necessary intervention from respective legislators to develop effective, fair, and less bureaucratic measures to govern the economic operators, tax authorities, and all interested stakeholders in these sectors.   This paved the way for introducing the OSS schemes, a new place of supply rules for cross-border supplies of goods and services, updates of the SMEs schemes, and many other relevant pieces of legislation that are the pillars of the EU VAT landscape.   The EU Commission made the first formally relevant moves towards the grandiose reform of the EU VAT framework under the VAT in the Digital Age reform in December 2022, so it is almost two years old. The VAT in the Digital Age (ViDA) package represents an abundant proposal to reform the EU VAT system to improve the mechanism for more effective VAT collection.   The main goal is to reduce the VAT gap at the EU level. Instruments for better tax collection and reporting, such as OSS, have significantly improved results. The Commission proposal is also based on a pragmatic approach that will make the tax compliance challenges for economic operators less costly and more streamlined.... --- ### Global - Guide to Voluntary Disclosure Agreements > See how Voluntary Disclosure Agreements (VDAs) help e-commerce businesses handle cross-border taxes, reduce penalties, and stay competitive. - Published: 2024-11-13 - Modified: 2024-11-13 - URL: https://1stopvat.com/global-guide-to-voluntary-disclosure-agreements/ - Article content types: Article - Business fields: Other Introduction  Voluntary disclosure agreements or programs allow taxable persons to resolve their past-due tax compliance obligations in a less demanding manner than if they are investigated under statutory audits. This type of “relief” program permits eligible businesses and individuals to disclose their tax liabilities in a more “amicable” way to the respective tax authorities.   The agreement is mutually beneficial. The revenue authority will be aware of the disclosed taxpayer's tax liability and, in that manner, will obtain at least(depending on the tax provisions) the owed tax payable and interest for late payment.   The disclosed taxpayer will limit the “amicable” auditing period to a so-called look-back period, and penalties will often be waived.   Tax compliance VDA arrangement is a precious tool for filling the tax gap caused by the non-compliant behavior of taxable persons. This compliance scheme will reduce the tax authority's administrative burden and related costs for taking all the necessary steps to pursue non-compliant taxpayers.   The responsible economic operator will leverage this program by reducing the statutory prescription period to the look-back period and reducing or waiving the guaranteed penalties in the case of the state audit.   Voluntary Disclosure Agreements  It should be noted that there aren’t unified rules regarding voluntary disclosure agreements. When we make a practical comparison between the regions, we could draw some similarities between the countries or states that belong to the specific region; however, there aren’t uniformly followed standards.   This differentiation is critical to consider for cross-border businesses... --- ### Ethiopia - Tax Liability for Foreign Providers of Digital Services > Curious about Ethiopia’s VAT rules for digital services? See how changes can affect your business and the steps for smooth compliance. - Published: 2024-10-28 - Modified: 2024-10-28 - URL: https://1stopvat.com/ethiopia-tax-liability-for-foreign-providers-of-digital-services/ - Article content types: Blog post - Business fields: Digital services - Countries: Ethiopia The list of countries implementing the obligation for foreign providers of electronically supplied services to register when providing these services to local recipients also arrives in Ethiopia. This is a logical consequence of the significant growth of the digital economy phenomenon. Based on the importance that VAT collection at the country level represents to the state coffers, the amendments of the VAT Act that introduce the provisions for non-resident providers of digital services or products to register for domestic VAT and follow the country's local regulations are simply put a reasonable answer based on the shift of B2C and B2B transactions from offline to online channels.   To accommodate the growth and related influence of the digital economy within its boundaries, the Federal Government of Ethiopia approved a new VAT Proclamation. This tax Act repeals the previous one in various parts and introduces the VAT framework for taxing non-resident providers of remote services.   VAT Proclamation and Implementation  The VAT Proclamation was officially published in the State Gazette on August 21, 2024. The implementation framework is still pending the adoption of the Implementing Decrees and related Regulations.   Foreign Providers of Digital Services  Impact  Adopting the VAT proclamation introduced some relevant amendments to the VAT regulatory framework, which is a necessary step towards embracing the tax collection model for digital service providers. The registration threshold has been adjusted and increased from ETB 1 million to 2 million, and this change will also impact foreign digital service providers.   Foreign taxable... --- ### Global - Digital Marketplace as a Merchant of Record  > Merchant of Record in digital marketplaces. Why it’s important in e-commerce and how it makes transactions smoother for online vendors. - Published: 2024-10-23 - Modified: 2024-10-23 - URL: https://1stopvat.com/global-digital-marketplace-as-a-merchant-of-record/ - Article content types: Blog post - Business fields: Digital services The birth of the e-commerce business landscape has paved the way for the introduction of many novelties regarding the types of economic operators that are part of it. The legal-business term Merchant of Record (MoR) isn’t entirely new. It has been used in the business world for many years since the inception of electronic commerce. In electronic commerce, its status and implicit meaning became more connected to the terms digital marketplaces, online vendors, payment service providers, triangular transaction chains, and other interconnected terms. We will not spend much time discussing in detail the implications of the concept of Merchant of Record in digital marketplaces (we will leave that for a different occasion). We will skip more than a few steps and move directly to the concise but practical, self-explanatory definition of the MoR shown in the accompanying schemes. Before that, let’s briefly explain the MoR concept within the online commerce ecosystem. Within the digital economy framework, a merchant of record (MoR) represents a legal entity(platform operator)that assumes the role of seller of goods or services to an end customer. From a legal point of view, the MoR is the supplier of goods or services to an end customer. Behind the curtain, two transactions are happening. There is a B2B transaction between an online vendor and a platform(transfer of ownership from vendor to platform) and a successive transaction between the platform operator and the end customer. From the legal and tax point of view, the operator is a supplier. In practical... --- ### Peru - Foreign  Digital Providers Should Levy General Sales Tax From December 1, 2024  > Peru's tax changes for foreign digital services. Understand Legislative Decree No. 1644 and prepare for the General Sales Tax requirements. - Published: 2024-10-21 - Modified: 2024-10-21 - URL: https://1stopvat.com/peru-foreign-digital-providers-should-levy-general-sales-tax-from-december-1-2024/ - Article content types: Blog article - Business fields: Other - Countries: Peru On September 13, the Executive Branch published Legislative Decree No. 1644, which prolonged the initial date of the tax collection liability for foreign providers of digital services to customers based in Peru. As we have previously explained in detail, the introduction of the tax collection mechanism for foreign providers of digital services to Peru-based customers will prompt us to jump right into the novelties on this occasion. We will explain the novelties and provide more practical information about some types of providers covered by the new Peru VAT collection system.   The Executive Branch obtains an extraordinary “legislative power” in specific scenarios relevant to the tax framework and has decided to postpone the initial date from which the taxable persons in scope should start withholding the VAT generated from their cross-border operations.   Legislative Decree No. 1623 introduced the obligation for foreign providers of digital services to charge, collect, and remit General Sales Tax(IGV) when the place of supply is within Peru, and the acquirer of the service is a natural person.   The abovementioned Decree stipulated that foreign providers already conducting these types of sales or planning to make them before September 30, 2024, should start collecting IGV on October 1, 2024.   However, the Revenue Administration and Ministry of Finance have noticed that economic operators in scope need additional time to prepare their tax systems to operate compliantly with the novelty of these proportions. Timeline  Adopted Legislative Decree No. 1644 states that, starting from December 1, 2024, foreign... --- ### Packaging EPR compliance in the EU ­– What retailers need to consider > Navigate the complexities of Extended Producer Responsibility (EPR) in Europe. Essential compliance strategies for packaging. - Published: 2024-10-14 - Modified: 2024-10-16 - URL: https://1stopvat.com/packaging-epr-compliance-in-the-eu-what-retailers-need-to-consider/ - Article content types: Blog article - Business fields: Other As a retailer selling to European consumers, staying compliant with Extended Producer Responsibility (EPR) regulations is not just a legal obligation, but a strategic necessity. The EU's EPR framework requires businesses to take responsibility for the environmental impact of their products throughout their lifecycle, from production to disposal. There are EPR areas for packaging, batteries, electrical appliances, furniture and tyres, among others. For retailers operating in Europe, understanding the key requirements and navigating the complex landscape of packaging licensing is crucial. In this article, we will outline the most important aspects of EPR compliance in the field of packaging and show you how to meet these obligations efficiently with the right support of our partner LIZENZERO. Understanding EPR Compliance in the EU The EPR is a policy approach that places the responsibility for the disposal of products on producers, incentivizing them to create more sustainable products and reduce waste. In the European Union, EPR is not just a concept ­–it’s a legal requirement. Every retailer, whether based in the EU or selling to EU consumers, needs to understand and comply with these regulations to avoid significant fines and reputational damage. For retailers targeting Europe, it is crucial to grasp the nuances of EPR regulations in each EU country, such as Germany, France and Spain. These countries have implemented stringent requirements that vary in scope but share the common goal of reducing waste, promoting recycling, and ensuring that producers bear the financial and environmental costs of their products' end-of-life. Key EPR... --- ### US - Landmark Court Decision in Epic Games vs. Google   > Epic Google Court Decision disrupts US app market, promoting fair competition with better commission rates and payment choices for developers. - Published: 2024-10-09 - Modified: 2024-10-09 - URL: https://1stopvat.com/us-landmark-court-decision-in-epic-games-vs-google/ - Article content types: Article - Business fields: Digital services - Countries: United States For those interested in essential headlines that could disrupt legal and tax ecosystems globally, we present a landmark decision resulting from the long-standing Epic Games vs Google trial. Epic vs Google legal dispute has been fought for some time, with different claims, moving forward and backward. Under the umbrella of the regulatory framework in the US, Epic Games Store initiated a legal dispute against Google, looking to obtain a favorable supporting decision that will result in the ending of the “alleged” Google monopoly position over the terms and conditions under which third-party sellers of apps can list their apps within Google Play store catalog.   The Epic injunction against Google should establish an entirely new Android-based marketplace landscape. Google Play Store is the undisputed leader and determining factor in the space that connects developers of Android-based apps with end customers.   One noticeable relevance is that Google Play Billing(service payment providing services) comes fixed almost as a glue for all the payments made through the Google Play Store. This payment mechanism permits Google to express its dominance and “dictate” conditions for both third-party online suppliers( being independent developers or digital marketplaces)  In this Epic Games Google legal battle, the Epic Games platform(plaintiff) probably won the first chapter, as Google will most likely submit an appeal.   Timeline  The permanent injunction issued by the US District Court(Northern District of California) should be effective November 1, 2024. However, it remains to be seen whether the Epic vs Google permanent injunction enforcement will... --- ### Philippines - President Signs the Law on Foreign Providers of Digital Services   > Stay informed about the Philippines' new VAT law for foreign digital services—what changes and what they mean for consumers and providers. - Published: 2024-10-07 - Modified: 2024-10-07 - URL: https://1stopvat.com/philippines-president-signs-the-law-on-foreign-providers-of-digital-services/ - Article content types: Blog post - Business fields: Digital services - Countries: Philippines After a few years of challenging negotiations, on October 2, 2024, the President of the Philippines signed a reconciled version of the Bill that introduces VAT liability for foreign providers of digital services when their customers reside in the country.   There have been many steps forward and backward concerning amending the Tax Code and introducing provisions that will mandate foreign providers of digital services and intangible goods to register and collect local tax when they provide services to buyers residing in the country.   One of the president's priorities for this year regarding tax reforms was to introduce this obligation. Many reasons drove the Government to adopt this Law. One of the main factors was the necessity of finding an effective way to increase the state budget from tax revenues.   We have been promptly informing you about developments in this regard for some time now. If you haven’t had a chance to familiarize yourself with it before, a precise and practical explanation is available here and here.   Timeline The law introducing the obligation for foreign providers of digital services to register for VAT in the Philippines should become effective from the day it is published in the Official Gazette, approximately 15 days after the President signs the bill.   Law on Digital Services  Gradual Implementation Based on the Bill's information, the implementation project will take some time due to the complexity and implications of introducing a new tax collection system.   Simply put, if the gradual introduction... --- ### Slovakia - Significant Increase of the VAT Rates > Learn how these changes could affect household spending and the economy in 2025. - Published: 2024-10-03 - Modified: 2024-10-03 - URL: https://1stopvat.com/slovakia-significant-increase-of-the-vat-rates/ - Article content types: Blog post - Business fields: Other - Countries: Slovakia Last September, government representatives presented a consolidated package of public finances for next year. The draft version of the highly impactful financial act introduces substantial novelties of the VAT framework.   The Government sees the need to increase VAT rates starting next year as necessary. This measure, among others, is a logical step for expanding the state coffers. The leading party has continuously repeated that its measures will not impact the quality of life of its citizens and regular household spending.   However, the high expected VAT rate increase will indeed influence the buying potential and quality of life of the country's citizens at some level.   It should be emphasized that the Bill is still in its draft phase; there are still active negotiations within the Government ministries, and after its upcoming adoption, it will be submitted to the Parliament.   Some changes are still expected. However, there is a small percentage of doubt that the increase in VAT rates will not happen. There is a strong push from the leading party on this “not-so” blissful measure for businesses, consumers, and international traders.   Timeline  If the consolidation package of public finances passes the legislative procedure before the Parliament, the increase of the VAT rates could be in force from January 1, 2025.   Present Situation  Currently, the standard VAT rate for goods and services(except for those for which a reduced or zero rate applies) is 20%. In addition to the standard VAT rate, reduced rates apply to a... --- ### Ireland - Sharing Economy and VAT Compliance (Uber case)  > Dive into the complexities of VAT compliance in Ireland's sharing economy with Uber. How this affects local taxi drivers and tax regulations. - Published: 2024-09-18 - Modified: 2024-09-18 - URL: https://1stopvat.com/ireland-sharing-economy-and-vat-compliance-uber-case/ - Article content types: Case study - Business fields: Digital services - Countries: Ireland Uber has been among the most profitable and influential digital platforms in the last decade. It belongs to the sharing economy platform group. Uber, being one of the most internationally recognized digital platforms in this sector, has significantly impacted the development of the sharing economy.   This level of relevance, driven by continuous growth and expansion of its portfolio of services, undoubtedly influences the taxation models shaped around these types of platforms worldwide.   The relevance of Uber and its related facilitation services has been one of the most important topics discussed in different business sectors in Ireland, most notably between taxi drivers and other digital platforms competing with Uber in the country.   There is at least an equally important discussion on the topic from the perspective of the Revenue Authority, which is trying to decipher where the VAT liability belongs and how to pursue “negligence” if there is one. Current situation  Legal - Tax Landscape  Uber has been operating in Ireland for the last four to five years. It provides facilitation services connecting suppliers (taxi drivers) and buyers (end customers). Uber charges its users a commission (fee) for these facilitation services (booking services) made through its platform. However, as the “publicly shared” sources state, Uber hasn’t charged local VAT on its commissions. Practically speaking, Uber hasn’t levied Irish VAT on providing booking services to its registered users (Irish taxi drivers). In its statement, Uber states that it is not obligated to levy local VAT on these services. Uber... --- ### EU - New VAT Regulatory Framework for Suppliers of Live Virtual Events > Navigate EU VAT framework for live virtual events. Learn how new regulations affect ticket sales and tax obligations for online streaming. - Published: 2024-09-11 - Modified: 2024-09-11 - URL: https://1stopvat.com/eu-new-vat-regulatory-framework-for-suppliers-of-live-virtual-events/ - Article content types: Article - Business fields: Other - Countries: Europe Introduction  The regulatory framework that EU institutions have established concerning the VAT rules that define the place of supply for VAT reasons concerning access to live events in person or online streaming of live events was put in place a long time ago.   When the regulators defined these provisions, the relevance of online streaming of live events wasn’t that significant from the tax point of view. The main focus was collecting tax through access to live events such as concerts, sporting events, and various other events.   However, continuous technological developments have enabled unforeseen possibilities even in this business sector. Now, people worldwide can access live streaming of events happening “offline. ”  Let’s put some numbers in-game to make it more practical. Let’s say there were concerts with a maximum capacity of around 50,000 people who could buy tickets and access the live event. Thanks to technological advancements, the number of listeners through online live streaming could grow exponentially.   The rules surrounding ticket sales and related admission to the live event were clear and easy to apply. However, the VAT on the sale of tickets for online access to the same event was radically different, and the taxman was often left with empty pockets.   New rules will significantly change this regulatory landscape, impacting how suppliers who permit customers to access virtual events online in real-time collect tax.   Regulatory background Based on the contrast between various legal interpretations, logic, and uncertainty, a clear rule surrounding the definition... --- ### Romania - SAFT Reporting New Obligation for Foreign Sellers > Find out how to prepare for the new Romania's SAF-T reporting rules for foreign vendors starting January 1, 2025 - Published: 2024-09-03 - Modified: 2024-09-03 - URL: https://1stopvat.com/romania-saft-reporting-new-obligation-for-foreign-sellers/ - Article content types: Blog post - Business fields: Other - Countries: Romania Romanian Tax Authorities introduced a new tax reporting requirement for domestic businesses in 2022, the Standard Audit File for Tax(SAF-T). The introduction of this new reporting mandate has been gradual, as is generally the case when a new tax reporting system is mandated.   The gradual roll-out was pegged to the taxable person's category. For large taxpayers, the obligation started in 2022, with the grace period, which gave them the possibility that for “some” types of infringements regarding the SAF-T reporting obligation, they could stay outside the penalty or fine zone until January 1, 2023.   The last group of taxable persons obliged to create, generate, and transmit a SAF-T RO file shall be small taxpayers(domestic businesses) and foreign vendors who don’t have a permanent or fixed establishment in the country but are VAT registered under Romanian regulations.   Timeline  Starting January 1, 2025, local small taxpayers and non-resident taxable persons registered for Romanian VAT will be obliged to collect the necessary data for the SAF-T accounting-reporting file.   What does this change mean for foreign vendors or providers of services?   Non-resident taxable persons who are VAT registered in Romania should be aware that, starting January 1, 2025, they will have an additional, important tax reporting obligation. Accordingly, they should begin collecting all the necessary information to generate the SAF-T RO file by the deadline.   The SAF-T RO file does not exclude the obligation to submit VAT returns. In XML format, this file will serve as an additional... --- ### Global - Amazon VAT Services Program for Online Vendors is Ending > The Amazon VAT Services Program for online vendors is ending. Learn how this change affects compliance and discover new service providers. - Published: 2024-08-23 - Modified: 2024-08-23 - URL: https://1stopvat.com/global-amazon-vat-services-program-for-online-vendors-is-ending/ - Article content types: Blog article - Business fields: Other The Amazon VAT Services Program, which has been very popular among hundreds of thousands of online vendors worldwide, is ending. Surprisingly, only two weeks ago, Amazon announced that its compliance/advisory subscription package, better known as Amazon VAT Services, would cease to exist.   Many online vendors, including individuals, small businesses, and medium-sized taxable persons, have used the Amazon VAT Service program for years to fulfill their tax obligations in numerous countries. The e-commerce giant has transferred a large part of these compliance services to external service providers, with Avalara being the leading external service provider.   Avalara has had numerous third-party service providers to whom it has transferred part of the compliance framework as a necessary step to streamline the compliance process and make it less cumbersome for online vendors.   Timeline  Until October 31, 2024, online vendors that have subscribed to the Amazon VAT Services program can still benefit from these services. Starting November 1, 2024, the entire VAT compliance requirements will be transferred to them or their service provider of choice.   Effect on VAT compliance  This news was publicly shared by Amazon more than two months after Avalara announced that it would withdraw from its contract as the primary service provider for VAT compliance. The dissolution of the Amazon VAT Services program will undoubtedly have a severe impact on the entire community of Amazon users. Online vendors leveraging this Amazon service to align with VAT requirements for their EU operations will need to search for a new... --- ### Amazon - European Online Vendors and New Invoicing Rules > Amazon changes impact online vendors across Europe. Learn about new invoicing rules and how to manage better expense recovery. - Published: 2024-08-21 - Modified: 2024-08-21 - URL: https://1stopvat.com/amazon-european-online-vendors-and-new-invoicing-rules/ - Article content types: Blog article - Business fields: Other - Countries: Europe E-commerce giant Amazon has been very busy this year, facing various challenges from the perspective of business and tax. It has introduced important novelties to make its European business environment less challenging and improve tax compliance practices.   The change starts with introducing the new service providers, who will now be responsible for invoicing. This change will automatically modify how the tax will be collected and reported.   Before this latest novelty, Amazon Services Europe s. a. r. l, a Luxembourg company, was responsible for invoicing, and the vendor collected and reported the tax on a reverse charge basis. Practically, it meant that online sellers didn’t need to pay VAT upfront.   What changed with the introduction of new rules?   Let’s dive into the blog so we can see, simply and concisely, what was changed and how it will impact the online vendor's business operations, invoicing, tax reporting, and disbursement flow carried out by Amazon.   Timeline  Starting from August 1, 2024, new rules introduced by Amazon will become effective.   Scope of the changes  Change of the service provider  Until August 1, 2024, Amazon Services Europe s. a. r. l, the principal Amazon office in the EU based in Luxembourg, was responsible for invoicing and disbursement for online vendors whose places of business were within the EU and UK.   Starting from August 1, 2024, Amazon Services Europe will become Amazon EU, with the head office in Luxembourg and nine branches in nine different countries. These offices will... --- ### Peru - VAT on Digital Services > Peru's VAT law now covers foreign digital service providers. Registration and compliance are mandatory, including periodic returns. - Published: 2024-08-19 - Modified: 2024-08-20 - URL: https://1stopvat.com/peru-vat-on-digital-services/ - Article content types: Article - Business fields: Digital services - Countries: Peru The Peru VAT Legislative Decree No. 1623, adopted just two weeks ago, introduced the VAT liability for foreign providers of digital services to their residents. The legislation declares that non-resident providers of digital services and intangible goods will be obliged to register for local VAT and act according to domestic rules. Looking from the perspective of the present legislative framework, the mention of the tax liability of the foreign providers of digital products and services to residents of Peru isn’t something entirely new without any provision adopted previously intending to establish similar liability to foreign suppliers.   However, the bureaucratic blur and legal-tax complexities haven’t helped much in establishing the framework that will allow local authorities to collect tax from foreign digital providers and use their monitoring tools to punish non-compliant behavior.   With the adoption of this piece of legislation, the framework of Cross-border digital VAT Peru changes from the foundation, and there will no longer be much “ free space” to leverage loopholes or non-monitored alleys to escape from the umbrella of tax compliance.  Peruvian digital service tax compliance system shows that more and more countries worldwide are looking to develop new tax collection systems for non-resident providers of digital services or products to their residents. Timeline  The Legislative Decree, which introduces VAT liability for non-resident providers of digital services to local customers, will be effective on October 1, 2024. Tax on Non-Resident Digital Services  The abovementioned legislation amends the General Sales Tax Law and Consumption Tax Law... --- ### Vermont - Introduction of Sales Tax Liability for SaaS  > Vermont's Act 183 (H.887) impacts SaaS providers. Learn about the new sales tax liability for prewritten computer software accessed remotely. - Published: 2024-07-26 - Modified: 2024-07-26 - URL: https://1stopvat.com/vermont-introduction-of-sales-tax-liability-for-saas/ - Article content types: Blog post - Business fields: Digital services - Countries: United States Vermont Legislature adopted Act 183 (H. 887) of 2024 last June, which overrides the Governor's veto on the sales tax exemption for “prewritten computer software accessed remotely. ” Since 2015, prewritten software accessed remotely has been out of the sales and use tax scope. However, the abovementioned bill repealed that leverage for cloud software providers.   Under the new legislative act, tangible personal property also includes prewritten computer software - regardless of the method it is paid for, accessed, or delivered to the buyer.   Timeline  The introduction of the Sales Tax Liability for Saas suppliers shall be effective from July 1, 2024.   Regulatory Landscape and Impact  Before adopting the new legislation, Vermont hasn’t extended its sales and use tax obligation to the supplies of cloud-based software applications. Expanding the concept of prewritten computer software to the types that are reachable remotely makes the different types of cloud-based software, such as Software as a Service(Saas) and Platform as a Service(Paas), among others, part of the sales and use tax matrix.   From a practical perspective, this means that the underlying supply of cloud-based software solutions(which belong to the new concept of prewritten computer software) should be treated as a taxable transaction.   The sales or use tax rate for this supply is 6%. The providers or users of the prewritten computer software, such as Saas, are obliged from July 1, 2024, to impose a sales or use tax rate for this type of supply. Customized prewritten computer software is... --- ### Philippines - Steps Towards Introduction of the VAT Liability for Non-Resident Digital Providers > Framework, timeline, and requirements for Philippines' legislative bill imposing VAT liability on foreign digital service providers. - Published: 2024-07-24 - Modified: 2024-07-24 - URL: https://1stopvat.com/philippines-steps-towards-introduction-of-the-vat-liability-for-non-resident-digital-providers/ - Article content types: Blog post - Business fields: Other - Countries: Philippines The Bicameral Conference Committee approved the final version of the legislative bill seeking to impose a VAT liability on foreign providers of digital services. The final version is a reconciled version of the bills previously adopted by the respective legislative chambers, the Senate and the House of Representatives.   As we indicated in our previous post, this legislative step was necessary to implement the ACT.   Framework and Timeline Once the president signs the bill, the law takes effect 15 days after publication in the Official Journal. The Department of Finance, in collaboration with other respective Revenue Authorities, shall prepare the necessary implementing regulations and rules that covered taxable persons should follow. The Bill gives the respective authorities 90 days to prepare implementing rules. Once the mandatory rules have been prepared and published, the bill gives 120 days to non-resident digital service providers to adhere to the required requirements. Reconciled Bill and Requirements  The final version of the bill clarifies some segments that were unclear before. It clearly defines the scope of the new framework and how taxable persons under the effectivity umbrella should act once the law is enacted. The ACT introduces the VAT liability for non-resident digital providers operating independently or through a marketplace from one side and from the other to the digital marketplace operator who facilitates the supply. The Revenue Authority will develop a simplified registration procedure for foreign providers of digital services, which will streamline the registration process and decrease the possibility of fraud.  ... --- ### Tax Technology Tools - VAT Compliance Automation > Automate and streamline your tax obligations with advanced tools for real-time data analytics and seamless integration. - Published: 2024-07-18 - Modified: 2024-07-22 - URL: https://1stopvat.com/tax-technology-tools-vat-compliance-automation/ - Article content types: Article - Business fields: Other In the fast-paced world of tax compliance, automation is a game-changer, reshaping how businesses handle Value Added Tax (VAT) obligations. With the help of advanced tax technology tools, companies can now automate and streamline VAT compliance processes, significantly reducing the risk of errors, enhancing efficiency, and ensuring strict compliance with local and international tax regulations.   These tools provide real-time data analytics, seamless integration with existing financial systems, and automatic updates in response to legislative changes.   However, the shift to an automated compliance method is long, and many companies still rely on a more traditional method, which includes manual data entry, handling, and calculations. As more countries introduce mandatory digital reporting and e-invoicing rules, businesses must adapt and implement automated solutions. The diagrams below show the difference between a traditional and an automated compliance method. Aleksandar Marinkovic1stopVAT Tax Researcher --- ### Singapore - GST Registration for Overseas Vendors > Learn about Singapore GST registration for overseas vendors, including requirements and processes. Expert guidance by 1stopVAT. - Published: 2024-07-16 - Modified: 2024-07-17 - URL: https://1stopvat.com/singapore-gst-registration-for-overseas-vendors/ - Article content types: Blog post - Business fields: Other - Countries: Singapore GST is a tax on local consumption in Singapore that applies to all goods and services consumed within Singapore, irrespective of origin. In 2020, two regimes were introduced to ensure a consistent GST treatment for all goods and services consumed in Singapore. These regimes were further expanded in 2023 to broaden their scope, and they are: Overseas vendor registration for Business-to-Consumer (B2C) supplies, and A reverse charge for Business-to-Business (B2B) imports. In 2024, the Singaporean Inland Revenue Authority (IRAS) issued GST registration guidance specifically for overseas vendors to explain GST regulations further and help overseas vendors comply with the registration process for B2C supplies. Overseas Vendor Registration for B2C Supplies Under the overseas vendor registration (OVR) regime, overseas vendors exceeding the SGD 1 million annual turnover threshold and making B2C supplies of remote services and low-value goods to customers in Singapore exceeding SGD 100,000 annually must register for GST in Singapore. According to the IRAS guide, an overseas vendor has no business establishment, fixed establishment, or usual place of residence in Singapore or has establishments both in and outside Singapore. Still, the establishment most directly concerned with the supply is outside Singapore. This includes: overseas vendors; overseas electronic marketplace operator; overseas re-deliverer. Remote services are defined as any services for which there is no necessary connection between the customer's physical location and where the service is performed when it is provided. Some of the remote services are: Downloadable digital content, Subscription-based media, Software programs, Electronic data management, Support services performed... --- ### US - Digital Platform TikTok and Sales Tax Compliance > TikTok Shop's e-commerce features and sales tax compliance. Learn about marketplace facilitator laws and tips for smooth tax reporting for US sellers. - Published: 2024-07-12 - Modified: 2024-07-12 - URL: https://1stopvat.com/us-digital-platform-tiktok-and-sales-tax-compliance/ - Article content types: Article - Business fields: Other - Countries: United States Explore TikTok Shop's e-commerce features and sales tax compliance. Learn about marketplace facilitator laws and tips for smooth tax reporting for US sellers. What started as a social media platform for entertaining videos is slowly transforming into a social commerce platform that offers an integrated e-commerce feature known as TikTok Shop. This feature allows sellers, creators, and companies to sell products directly to their platform users. This built-in commerce solution launched in 2022 includes several shopping formats: live shopping, shoppable short videos, product showcases, and shop tabs. It is integrated and connected with Shopify, WooCommerce, Salesforce Commerce Cloud, BigCommerce, Magento, and other leading commerce platforms and is currently available in Indonesia, Malaysia, the Philippines, Singapore, Thailand, the United Kingdom, the United States, and Vietnam. Like any e-commerce operation, sales tax compliance is essential for sellers and the platform. In the context of the US market, a key question arises: is TikTok Shop subject to Marketplace Facilitators' laws in the US, and who bears the responsibility for collecting and remitting sales tax? Sales Tax Collection and Remittance Like Amazon, TikTok Shop should comply with marketplace facilitator laws in various US states. These laws transfer the tax reporting liability from the original vendor to the platform operator. The agreed Terms and Conditions between the platform operator and supplier indicate that the TikTok shop is responsible for the underlying tax reporting.   Concerning the validity of the data on the products listed on the platform, the liability remains with the original vendors. The vendor is responsible for handling resale certificates.   Relevant Notes for the Vendors on TikTok Shop Although the platform operator collects and remits... --- ### Finland - Increase of the VAT Rate and Tax Compliance - Published: 2024-07-05 - Modified: 2024-07-05 - URL: https://1stopvat.com/finland-increase-of-the-vat-rate-and-tax-compliance/ - Article content types: Blog post - Business fields: Other - Countries: Finland The Finnish Parliament adopted the government's proposal to amend the VAT Act and increase the general VAT rate. The Standard VAT Rate, currently fixed at 24%, shall be increased to 25. 5%.   The government proposal will also introduce an increase in the insurance premium tax, which will rise from 24 percent to 25. 5 percent, based on the fact that the insurance premium tax rate is interconnected with the standard rate.   Applicability  According to the Government proposal, the new Standard VAT Rate should become effective on September 1, 2024.   Impact - Tax Calculations and Reporting  The introduction of the new tax rate and its date of implementation is of high importance for businesses making supplies within the country. Allocating the proper rate is pivotal for the correct tax calculation and later reporting requirements for the mandated taxable persons.   The current notices and official updates state that the effective date of the change will probably be the one indicated in the Government proposal, but it remains to be seen.   To ease the process of proper tax calculations before the effect of this change and as soon as the amendment of the VAT Act becomes effective, the Tax Administration prepared practical tax instructions for interested parties on how to charge the correct rate in these transitory times.   Taxpayers responsible for levying import tax should be aware that this tax rate change will also impact their tax calculations and reporting duties. One relevant guideline for these persons... --- ### US - Challenges for Remote Vendors > US post-Wayfair decision: economic nexus, state tax rules, digital product taxability, and marketplace compliance. - Published: 2024-06-28 - Modified: 2024-06-28 - URL: https://1stopvat.com/us-challenges-for-remote-vendors/ - Article content types: Blog post - Business fields: Other - Countries: United States Last week was six years since the U. S. The Supreme Court issued a landmark decision in the Wayfair case. This decision introduced the concept of the sales tax or use tax liability for out-of-state sellers when they reach a state-designated economic nexus.   Introduction of the Economic Nexus Before Wayfair, states were generally limited to requiring sales tax collection only from businesses with a physical presence. The Wayfair decision overturned this precedent, allowing states to require out-of-state sellers to collect and remit sales tax even if they don't have a physical presence in the state, provided they exceed certain economic thresholds. State laws define the economic nexus differently. Some states determine the economic nexus through the taxable turnover on a yearly basis, others through the turnover and number of taxable transactions, and there are other scenarios as well.   The most relevant fact to keep in mind is that when the remote supplier reaches the economic nexus, defined by the state's laws, where he has considerable sales, he is obliged to accommodate his business operations in that state per the state tax laws. The first obligation will be to register for the state sales tax.   The State's regulatory framework that triggers the mandatory registration of the remote vendors( independent sellers and digital platforms) is quite different from each other, which brings the compliance duties for out-of-state sellers that make supplies in various states even more challenging.   Taxability of New Digital Products Since the Wayfair ruling, the revenue... --- ### Finland - The Proposal from the Ministry of Finance for Increase of the VAT Rate - Published: 2024-06-11 - Modified: 2024-06-11 - URL: https://1stopvat.com/finland-the-proposal-from-the-ministry-of-finance-for-increase-of-the-vat-rate/ - Article content types: Blog post - Business fields: Other - Countries: Finland The Finnish Government is looking for new ways to increase public revenue. The Ministry of Finance has presented amendments to the VAT Act and the Insurance Premium Tax Act before the Parliament to increase the standard VAT rates.   The increase in the STD VAT rate is often seen as a risky and politically challenging move because it can lead to strong public disapproval, which could inherently decrease the level of positive sentiment towards the leading party. However, in this case, and at the present time, the Ministry of Finance and the Government are resiliently pushing for this legislative change.   Timeline  The proposed draft of the Value Added Tax Act proposes increasing the Standard VAT and Insurance Tax rates starting September 1, 2024.   Regulatory Impact The Ministry of Finance's proposal increases the STD VAT rate and STD Insurance tax rate from 24% to 25. 5%. If the Parliament adopts the VAT Act and Insurance Premium Tax Act amendments, Finland will join the EU countries with the highest Standard VAT rate.   This rate increase will undoubtedly have a serious impact on retail prices. On the one hand, the vendors would need to address this when defining new prices according to the VAT rate increase and how they will approach this change, and on the other hand, customers' expenditures on the same products and services they purchase monthly will probably be higher.   The Ministry of Finance has submitted amendments to the VAT Act and Insurance Premium Tax Act... --- ### Slovakia - New Rules Concerning VAT Registration Thresholds - Published: 2024-06-04 - Modified: 2024-06-04 - URL: https://1stopvat.com/slovakia-new-rules-concerning-vat-registration-thresholds/ - Article content types: Article - Business fields: Other - Countries: Slovakia The EU legislative framework concerning special schemes for SMEs was significantly revised upon adopting the new regulations. The Slovakian authorities have prepared necessary amendments to the related VAT framework to address these novelties.   These novelties cover important changes in VAT registration proceedings for domestic and foreign taxable persons. The scope of these amendments is comprehensive, addressing changes related to registration thresholds, the timeline for submission of relevant documentation for becoming a VAT payer, and other inseparable compliance responsibilities of taxable persons.   Timeline  These changes to the Slovak VAT Act should be followed starting January 1, 2025.   New Regulatory Framework  Domestic Taxable Persons  From January 1, 2025, the circumstances under which domestic taxable persons should follow the VAT registration procedure will differ from today. One of the significant changes is that the calculation of the turnover that triggers the mandatory registration is revised. The domestic taxable persons should register for VAT:  If their annual turnover, excluding tax, in the previous calendar year has surpassed the threshold of EUR 50,000 or; If their current turnover is above the threshold of EUR 62,500. The turnover calculation period has been modified. Currently, the threshold registration is based on 12 consecutive months. However, this will change in the manner described previously.   If Company X's annual turnover in the preceding year was above EUR 50,000 but below the threshold of EUR 62,500, it could continue operating without imposing VAT on its supplies until January 1 of the following year.   However, in... --- ### Philippines - Senate Approves the Bill for Introduction of the VAT for Foreign Digital Service Providers  - Published: 2024-05-29 - Modified: 2024-05-29 - URL: https://1stopvat.com/philippines-senate-approves-the-bill-for-introduction-of-the-vat-for-foreign-digital-service-providers/ - Article content types: Blog post - Business fields: Other - Countries: Philippines The Senate, the second legislative body of the Philippines parliament, has adopted Senate Bill No. 2528, which introduces the VAT liability for Foreign Digital Service providers when they make a taxable supply of digital goods and services to customers residing there.   As we have previously mentioned and explained in detail, the Government has been trying for some time now to implement the regulatory framework that will permit local tax authorities to collect VAT from foreign providers of digital services.   For the Philippine Government, a key objective in implementing this legislation is to establish equality between domestic and foreign providers of digital services to customers based in the country. The current regulatory framework allows foreign providers to have fewer tax compliance burdens on their activities, potentially leading to more profits and a perception of 'shady' behavior.   The House of Representatives adopted the House Bill on the third and final reading, which lays the foundation for the introduction of this sort of liability for FDPs. Now, the Senate has also finalized this.   The Senate adopted the above mentioned bill unanimously on the third and final reading, which is a very important and mandatory step towards enacting it.   The next crucial step, which should be concluded in a timely manner, is the review of the Bill by the Congress Committee. Following this, the Bill will be transmitted to the President, marking a significant milestone in its potential enactment.   Timeline  When the BIll becomes a Law, the tax... --- ### EU VAT Refund - Practical Guidelines - Published: 2024-05-27 - Modified: 2024-05-27 - URL: https://1stopvat.com/eu-vat-refund-practical-guidelines/ - Article content types: Article - Business fields: Other Taxable persons established within the EU have more than a few benefits when operating within the common market, and one of those is undoubtedly the possibility of reclaiming paid VAT, leveraging the EU VAT Refund procedure.   This mostly standardized and simplified refund procedure permits the EU-established taxable persons to reclaim the VAT they have paid on their taxable purchases only when the mandatory requirements are met.   The logical question would be, what are these mandatory requirements?   The initial requirement is that both taxable persons have their fixed establishment within the EU. From the connection perspective, the next one is that the claimant Member State of Establishment(MSE) differs from the Member State of the Refund(MSR).   The claimant, to be able to issue a valid refund application, must be aligned with these provisions during the refund period: It cannot be established in the MSR or; It cannot supply goods or services in the MSR except for → exempt transport and ancillary services and supplies to customers where the reverse-charge system can be leveraged.   When MSR receives the request for a VAT refund, it should decide following the deadlines defined in the EU-based and national legislation. The decision made by the MSR can be positive or negative; that is, the Member State of Refund can accept, partially accept, or reject the request for a VAT refund.   The Member State of Refund should act within two defined timeframes based on the claimant’s application and related documentation. These deadlines... --- ### EU ViDA Reform - Estonian Ministry of Finance Temporarily Blocks the Agreement - Published: 2024-05-23 - Modified: 2024-05-23 - URL: https://1stopvat.com/eu-vida-reform-estonian-ministry-of-finance-temporarily-blocks-the-agreement/ - Article content types: Blog post - Business fields: Other Last week, the EU Economic and Financial Affairs Council(ECOFIN) convened to discuss the VAT in the Digital Age reform, a topic of significant importance for businesses. The national Ministries of Finance, representing various sectors, were optimistic about the potential for a consensus. The latest draft of the ViDA proposal, after several amendments, was presented for further review.   After several amendments and roadblocks, the draft version of the ViDA regulatory framework adopted on May 8, 2024, was considered to be the one that will pass the ECOFIN voting and move into the next phase of the regulatory EU mechanism.   Regrettably, the voting outcome before ECOFIN needed to align with the expectations of many cross-border businesses. This decision has far-reaching implications, from establishing new operating frameworks to searching for new partners and service providers. These are crucial aspects that keep businesses in line with regulations.   Simply put, stakeholders from the public and private sectors were waiting for the “positive” outcome of the voting based on the latest advances in adopting the reform by the EU institutions. On the other hand, some stakeholders hoped that some parts of the proposed version's pillars would be “reshaped” to make their compliance operations less burdensome.   The Estonian representative at ECOFIN, i. e. , the Minister of Finance, vetoed the adoption of the ViDA package submitted for the members' voting. His refusal to give a positive vote to the regulatory framework presented was based on a “different” view of what new tax liabilities... --- ### Ukraine - Digital Platform PornHub and VAT Liability - Published: 2024-05-09 - Modified: 2024-05-13 - URL: https://1stopvat.com/ukraine-digital-platform-pornhub-and-vat-liability/ - Article content types: Article - Business fields: Other - Countries: Ukraine The Ukrainian regulators introduced a package of “E-Commerce” legislative changes to the Tax Code, in June 2021 to address the necessity of ever-growing expansion of the digital economy in the country. This sort of reform could be most vividly described through the adoption of the amendments that addressed the change of tax treatment of the foreign providers of digital services.   At the time, the Government was searching for the best possible measure on how to reduce the fragment of the VAT gap that was derived from the provision of Electronically Supplied Services by foreign digital providers. The adopted measures introduced the VAT liability for foreign digital service providers after the stipulated threshold is surpassed.   The amendment to the Tax Code opens the doors for the Tax Authority to use different channels by which it can pursue the enforcement of the strict provisions when foreign taxpayers are operating in a non-compliant manner.   This is most transparently observed through the measure where the specifically designed department of the Ukrainian tax authority can reach out directly to the foreign tax authority where the non-compliant foreign provider of digital services is established, seeking for sort of collaboration to “put” the non-compliant platform operator in the tax framework of the country where the services are delivered.   Leveraging the instituted provision, the Ukrainian tax authority has reached out to the Canadian Tax Authority, through a public notification, looking for help, to be able to enforce its provisions of the Tax Code concerning... --- ### Laos - Foreign Providers of Digital Services and VAT Compliance - Published: 2024-05-07 - Modified: 2024-05-07 - URL: https://1stopvat.com/laos-foreign-providers-of-digital-services-and-vat-compliance/ - Article content types: Blog post - Business fields: Other - Countries: Laos In our previous Article, we mentioned that the Ministry of Finance has adopted Instruction No. 558 issued by the Lao Tax Department, which introduces the obligation of foreign providers of digital services to levy local VAT for taxable supplies.   The obligation to register for VAT applies to both non-resident digital platform operators, as well as to digital suppliers operating independently. The Instruction was pending publication in the Official Gazette, as the necessary condition for this legislation to be officially registered and applicable.   The Instruction was finally published in the Gazette on March 26, 2024.   Timeline Starting from August 1, 2024 non-resident suppliers of digital services and products are obliged to register for VAT in Laos when they provide taxable services to customers based in the country.   Impact of the New Requirements After more than two years of the publication of the first Instruction on the “Implementation of VAT obligations for Foreign Suppliers of Digital Services”, and all the accompanying amendments in the timeframe of two years, finally, with this piece of legislation the non-resident suppliers of digital services will have at their disposal clarity when it comes to VAT compliance obligations for their taxable supplies in the country.   In the initial period, the foreign taxable persons could register for VAT only through the usage of services of local tax representatives, because the registration procedure could be pursued only by manual application at the offices of local authorities.   The defined goal of the Lao Tax... --- ### Germany - Introduction of B2B Electronic Invoicing - Published: 2024-04-26 - Modified: 2024-04-26 - URL: https://1stopvat.com/germany-introduction-of-b2b-electronic-invoicing/ - Article content types: Blog post - Business fields: Other - Countries: Germany Last March, the Federal Council approved the Growth Opportunities Act, which, driven by the Government’s goal to enhance the quality of services within the digital business environment, introduced the plan for gradually implementing e-invoicing and digital reporting in the country.   The German government has been working continuously for some time now on the plan to mandate B2B electronic invoicing for domestic taxpayers. The push for the mandate is twofold: from one side, it has been seen as a necessity to shift from the traditional paper-based invoicing system to a more developed one. From another perspective, the common EU-wide framework for digital reporting is developed as part of the ViDA reform.   Government officials see an additional benefit for taxable persons who will be covered by the VAT reporting requirements in the Digital Age modernization project based on the possibility of introducing both mandates within a short timeframe.   Timeline of New Requirements The Growth Opportunities Act sets a clear timeline for adopting electronic invoicing in Germany. The mandate will be introduced gradually, in a few successive phases, shown below accordingly:  January 1, 2025 - Taxable persons with a permanent establishment in Germany should be prepared to receive e-invoices if the supplier generates and submits a structured e-invoice to its counterparty January 1, 2027 - Taxable persons with a turnover above EUR 800,000 should issue exclusively electronic invoices January 1, 2028 - All domestic taxable persons should be able to issue, receive, and store electronic invoices Impact on Taxable Persons... --- ### Senegal - Introduction of VAT Obligations for Foreign Digital Providers - Published: 2024-04-23 - Modified: 2024-04-23 - URL: https://1stopvat.com/senegal-introduction-of-vat-obligations-for-foreign-digital-providers/ - Article content types: Article - Business fields: Other - Countries: Senegal The Government of Senegal, specifically the Minister of Finance and Budget, adopted a decree last November that made the provisions of the General Tax Code, particularly those devoted to VAT, effective.   The Decree introduced VAT liability for non-resident providers of digital services to customers residing in the country. The obligations for foreign taxable persons within the scope of legislative provisions are entirely new and without precedent in the country.   A new piece of legislation covers taxable persons who are both foreign digital platforms operating as facilitators between online merchants and customers and foreign digital suppliers operating independently.   Timeline Foreign suppliers of digital services need to be aware that the provisions of the Decree will become effective on April 1, 2024, leaving them with limited time to prepare for these changes.   Impact and Framework  The scope of non-resident taxpayers impacted by these changes is, by default, extensive. In some countries, we have seen that this obligation exclusively applies to digital platforms(deemed suppliers for underlying supply), the intermediaries between underlying merchants and customers. However, in Senegal, the situation is different.   The Senegalese tax authorities have developed simplified registration and filing procedures to ease the challenges for foreign taxpayers.   The obligation is mainly designed to cover B2C transactions, but it also covers B2B transactions in some cases.   From a practical standpoint, what do these obligations mean for foreign providers of digital services?   Taxpayers under this legislative umbrella should familiarize themselves with their VAT responsibilities before... --- ### Thailand - Foreign Digital Platforms and Import of Low-Value Goods - Published: 2024-04-10 - Modified: 2024-04-10 - URL: https://1stopvat.com/thailand-foreign-digital-platforms-and-import-of-low-value-goods/ - Article content types: Blog post - Business fields: Other - Countries: Thailand The Ministry of Finance and the Revenue Department of Thailand are cooperating on the preparation of the draft law(amendments) to the VAT Act that will set the framework for the introduction of new liabilities for foreign digital platforms or suppliers for supplies of low-value goods.   The present situation permits non-resident suppliers to make cross-border supplies of low-value goods without bearing any additional cost related to the imposition of local import duties or VAT on their imports.   From a practical standpoint, these products are sold without any import duty or VAT levied when the goods are imported into the country and picked by the end consumer. This advantage for foreign sellers makes the domestic market unbalanced and puts non-resident merchants into a privileged position in comparison to local sellers.   The government is striving to find a fair and balanced solution to address the current market imbalance, ensuring that both foreign and local sellers operate on a level playing field within the same sector.   Timeline  The leading local financial institutions plan to prepare the draft law in the following weeks so that the new provisions will be enforced within May.   New rules  The amendments to the VAT law will significantly change the digital service providers' (platforms) operations through which low-value goods are sold to customers based in Thailand. The Government should reinforce the competitiveness of domestic small and micro businesses by introducing indirect tax obligations for foreign suppliers of low-value goods.   What will new rules change... --- ### New Measures for Non-Resident Providers of Digital Services in Laos - Published: 2024-04-05 - Modified: 2024-04-05 - URL: https://1stopvat.com/new-measures-for-non-resident-providers-of-digital-services-in-laos/ - Article content types: Blog post - Business fields: Other - Countries: Laos The Ministry of Finance of Laos has adopted new requirements for non-resident suppliers of digital goods and services to customers based in the country. The MoF has published official instructions(Notification Act) that explain these requirements via its official webpage on Facebook. These circulars replace the Notification Act, which has been adopted and applicable for two years.   The Notification Act from February 2022 introduced obligations for foreign suppliers of digital goods and services to customers based in the country.   It defined that foreign suppliers of digital goods and services, i. e. , platforms, e-commerce marketplaces, and e-merchants without fixed establishment in Laos, are obliged to register, file, and pay VAT to competent authorities.   The Instruction introduced a threshold of USD 34,000 for foreign suppliers. Interestingly, non-resident suppliers are also mandated to file and pay corporate income tax when the conditions are met.   The Ministry of Finance adopted a new Notification Act on February 14, 2024, and it is still pending official publication in the National Gazette.   However, the circular introduces new requirements for foreign suppliers of digital services. It clarifies some points that could “mislead” taxpayers since the inception of the indirect and direct tax liabilities for foreign digital platforms.   Timeline The new rules will be applicable from August 1, 2024.   Coverage and Impact of New Circular  Taxpayers surpassing the threshold must register for tax purposes via an online portal, which is made available to simplify registration, filing, and payment of the owed tax.... --- ### Deemed Supplier Liability for Digital Platforms in New Zealand - Published: 2024-03-21 - Modified: 2024-03-21 - URL: https://1stopvat.com/deemed-supplier-liability-for-digital-platforms-in-new-zealand/ - Article content types: Blog post - Business fields: Other - Countries: New Zealand Last year, the New Zealand government enacted the Taxation Act 2023, which introduced significant changes concerning indirect taxation of the Platform economy. The Taxation Act was passed on March 31, 2023, but most of its content related to reshaping the legal framework from the platform economy will be applicable starting from April 2024.   The New Zealand government started with the implementation of the legal framework for the platform economy in 2016, when the GST Act, for the first time, addressed the tax liability of digital marketplaces for facilitating the supply of remote services. The scope of indirect tax liabilities of digital platforms was expanded for the second time in 2019. The GST Act introduced the deemed supplier model for digital marketplaces, facilitating the supply of low-value goods to domestic customers.   The latest change of the GST Act adopted last year introduces the concept of a deemed supplier for digital marketplaces providing facilitation services, i. e. , making it possible for underlying suppliers to offer “listed services” to local customers.   The Taxation Act 2023 provides an exhaustive list of services and ancillary services connected with the principle one that could activate the GST reporting liability of the digital marketplace for the underlying supply.   Timeline  The amendments to the GST Act will come into effect starting from April 1, 2024.   Impact on tax registration and reporting liabilities  Starting from April 1, 2024, the digital marketplace should generally be considered from the tax perspective as the seller of... --- ### Introduction of Deemed Supplier Liability for Foreign Digital Platforms in Japan - Published: 2024-03-19 - Modified: 2024-03-19 - URL: https://1stopvat.com/introduction-of-deemed-supplier-liability-for-foreign-digital-platforms-in-japan/ - Article content types: Blog post - Business fields: Digital services - Countries: Japan The Japanese main executive body has proposed significant changes in the submitted tax reform bill that would impact non-resident digital platforms' financial operations. The proposal is based on the necessity of implementing a tax collection system that will neutralize the inequality in the conditions mandated for foreign and local digital service providers.   Japanese authorities mandated that foreign digital service providers register and charge consumption tax when the threshold is reached. This legislative move has been active since October 2015. However, the national reports that follow the collection of indirect taxes for digital services undoubtedly show a significant consumption tax gap.   Enforcing consumption tax mandates on foreign suppliers of digital services is very challenging, and the difficulties are transparent, as shown in lost tax revenue for B2C transactions. In most cases, these service providers' lack of physical presence complicates enforcing the rules for national tax authorities.   Considering this reality, the Japanese Cabinet proposed tax reform that would introduce a deemed supplier statute for foreign digital platforms that provide intermediary services for connecting non-resident service providers with Japanese customers.   Timeline  The draft bill should become effective on April 1, 2025. A one-year grace period to prepare and test the new compliance system would follow.   Digital Platform Operators  Tax reform introduces the liability of digital platform operators to the underlying supply of digital goods and services. The present tax liability of the underlying supplier will be shifted to the foreign platform operator. It should mean that the foreign... --- ### Foreign Suppliers of Digital Products - Business and Occupation Tax Liability - Published: 2024-03-13 - Modified: 2024-03-13 - URL: https://1stopvat.com/foreign-suppliers-of-digital-products-business-and-occupation-tax-liability/ - Article content types: Article - Business fields: Digital services Some time ago, I came across one exciting and intriguing tax scenario regarding the supply of digital products to customers residing in Washington State. Most European countries don’t impose direct tax liabilities for non-resident suppliers of digital goods or services outside their country of residence that are also VAT registered in the destination country when needed. So, we are not discussing non-resident digital suppliers with a physical presence in the destination country.   Most times, the foreign sellers of digital products don’t have more than one tax residence or permanent establishment. Even the number of VAT registrations dropped significantly since adopting the OSS schemes. As we know, the tax liabilities of the foreign providers of Electronically Supplied Services within EU B2C operations are defined mainly within the circle of indirect taxes. Non-resident digital merchants making their supplies to customers based in Washington State could be behind indirect and direct tax liability.   Sales Tax Compliance  Non-Resident Digital Sellers with physical or economic nexus in Washington State must levy retail sales tax on their sales to customers based in the state. Various triggers could imply the existence of a physical nexus in the state. As regards the economic nexus, the triggering momentum is more straightforward. The out-of-state digital seller(marketplace or e-merchant) has an economic nexus when they reach the gross receipts threshold of USD 100,000 for sales sourced or attributable to Washington State.   When the respective supplier reaches the threshold, it must register for sales tax in the State and... --- ### Steps Towards the Introduction of VAT Liability for Foreign Providers of Digital Services in Sri Lanka - Published: 2024-03-05 - Modified: 2024-03-05 - URL: https://1stopvat.com/steps-towards-the-introduction-of-vat-liability-for-foreign-providers-of-digital-services-in-sri-lanka/ - Article content types: Blog post - Business fields: Other - Countries: Sri Lanka The New Year has brought many significant changes regarding indirect taxation in the country. The Government decided to introduce this package of changes in the first month of 2024, as it sees in this move a powerful force in growing public revenue and establishing a more competitive business environment.   The VAT threshold is decreased from Rs 80 million to Rs 60 million.   Starting January 1, 2024, resident businesses providing electronically supplied services to non-taxable persons residing in the country should levy VAT on their supplies.   The Standard VAT Rate is increased from 15% to 18%.   Timeline  The amendment of the VAT Law came into force on January 1, 2024.   Impact and Challenges For a few years, suppliers of digital services and digital products have enjoyed being VAT exempted from their turnover in the country. This year, this has changed. The move from the advantageous regime into one where the newly imposed Standard VAT rate of 18% needed to be levied wasn’t received as happy news.   Based on the interpretation of the VAT Law, the obligation to impose a VAT on providing digital services to end customers in Sri Lanka captures only providers(digital platforms, online merchants) whose place of tax residence and/or permanent establishment is in the country.   Foreign providers are isolated from this change at the present moment; they don’t have VAT liability, and they can provide similar/same services without charging VAT. Looking upon the VAT Law, its related practical interpretation, and the... --- ### Global Trend - Electronic Invoicing and Digital Tax Reporting - Published: 2024-02-27 - Modified: 2024-02-27 - URL: https://1stopvat.com/global-trend-electronic-invoicing-and-digital-tax-reporting/ - Article content types: Blog post - Business fields: Other We are witnessing more and more countries implementing a digital tax reporting system. There are a few reasons countries globally are moving away from traditional tax reporting channels into digital solutions. From one side, we have the perspective of the tax authorities and connected institutions. Their reasoning is mainly connected to the concern about developing a more effective system to combat tax fraud, tax evasion, and avoidance of taxes. This is one of the main reasons they established tax reporting tools that receive and transmit transactional data in real-time or near real-time.   Businesses see digitizing tax reporting as the advantage to operating more efficiently, streamlined, and standardized. Of course, this does not mean that taxable persons are super happy that they must adapt to new regulations and invest significantly in developing new compliance systems.   Looking from a global perspective, one thing is inevitable regarding tax reporting: more and more countries will adopt modern reporting systems using electronic channels for data transmission.   It seems that electronic invoicing is being chosen as the most efficient type for combating tax fraud. Some countries have implemented different types of digital reporting that operate simultaneously or successively, depending on the mechanism in place. Here, we can see that sales data from various sources is being captured, analyzed, and transferred for, e. g. , tax auditing or pre-filing tax returns. Global Overview - Expected Digital Reporting Mandates RegionCountryType of Implemented MandateFuture - Expected Mandate(s) Expected Roll-Out - Starting DateEuropeBelgiumB2G E-invoicingB2B E-Invoicing2026EuropeCroatia1. B2G E-Invoicing2.... --- ### Introduction of Tax Liability for Non-Resident Suppliers of Digital Services in North Macedonia - Published: 2024-02-19 - Modified: 2024-02-19 - URL: https://1stopvat.com/introduction-of-tax-liability-for-non-resident-suppliers-of-digital-services-in-north-macedonia/ - Article content types: Blog post - Business fields: Other - Countries: North Macedonia The amendments of the Law on Value Added Tax adopted in the last quarter of 2023 introduced the obligation for the foreign providers of digital services to register for the VAT when they are treated as providers of electronically supplied services to final customers residing in North Macedonia.   Timeline  Starting from January 1, 2024, the non-resident suppliers of electronically supplied services are obliged to register for VAT and comply with all the VAT obligations applicable to VAT-taxable persons.   Foreign Providers and VAT compliance The non-resident suppliers of digital services that don’t have a tax domicile or permanent establishment in North Macedonia that could include the likes of digital platforms, online merchants, and e-retailers that provide ESS to non-taxable persons whose place of residence is within the country, are obliged to register for VAT.   There is no threshold stipulated for this group of suppliers. Before the commencement of the taxable activity where the place of turnover is in the country, the foreign provider should register for VAT with the responsible tax authority.   The services of the local tax representative should generally be mandatory. The domestic fiscal representative will carry out all the VAT compliance duties imposed on the foreign provider by law.   These are some of the types of taxable electronically supplied services defined by VAT Law:  1. development of websites, web hosting, remote maintenance of programs and equipment; 2. software and its updating; 3. images, text, and information and making databases available; 4. music, films,... --- ### Increase of Service Tax Rate and Effect on Foreign Service Providers in Malaysia - Published: 2024-02-13 - Modified: 2024-02-13 - URL: https://1stopvat.com/increase-of-service-tax-rate-and-effect-on-foreign-service-providers-in-malaysia/ - Article content types: Blog post - Business fields: Other - Countries: Malaysia Foreign digital service providers registered under the Service Tax Act must charge, collect, and remit Service Tax for providing digital services to customers based in Malaysia.   The Service Tax rate applicable to providing digital services to customers in Malaysia is 6% of the taxable amount. It’s important to note that not all foreign digital service providers have the obligation to impose Service Tax on their supplies to Malaysian customers.   The Service Tax Act instituted a threshold of RSM 500,000. If the Non-Resident entity is below the stipulated threshold, there isn’t per se an obligation to charge, collect, and remit Service Tax.   According to the State Budget for 2024, the Government decided to increase the Service Tax rate to provide digital services. However, this isn’t the only change introduced by the amendments to the Service Tax Act.   Some supplies previously outside the scope of the Service Tax Act became taxable after the amendment came into the picture.   The tax rate will increase from the present 6% to 8%.   Timeline  The effective increase of the Service Tax rate will start from March 1, 2024.   Effective Change  Domestic and foreign service providers that provide taxable services should be aware of this significant change. What it would mean for the businesses under the scope of change if they neglect it doesn't need to be explicitly emphasized. The businesses should consider this change as soon as possible if they haven’t done it already. They should modify the Service... --- ### DAC 7 - Reporting Obligations for Digital Platforms - Published: 2024-02-08 - Modified: 2024-02-08 - URL: https://1stopvat.com/dac-7-reporting-obligations-for-digital-platforms/ - Article content types: Article - Business fields: Digital services Introduction The digital economy has rapidly grown in the last few years. The blossoming of the digital platform economy and the cross-border reach of platform operators in facilitating the connection services between the underlying suppliers registered on the platform, and customers created unseen challenges.   One of those challenges is the cross-border fluctuation of considerations transferred to the platform or the seller. Monitoring the income obtained by the online merchants operating through the platform poses a continuous challenge for the Member States' tax authorities.   The Organization for Economic Cooperation and Development(OECD) on June 2020 published the so-called Model Rules for Reporting by Platform Operators concerning Sellers in the Sharing and Gig Economy. These guidelines paved the way for introducing similar rules across the globe.   The European Council’s Directive, 2011/16/EU on Administrative Cooperation in the field of taxation, laid the foundation for introducing different kinds of reporting obligations of economic operators, mainly guided by a vision to enhance the quality of cooperation and automatic exchange of information between member states' tax administrations.   In March 2021, Council Directive 2021/514/EU was published, colloquially known as the DAC 7 Directive. This Directive represents the 6th amendment to the European Council Directive on Administrative Cooperation and Automatic Exchange of Information in the Field of Taxation. The DAC 7 Directive introduced special reporting requirements for the digital platform operators operating within the EU common market. One of the goals of the Directive is to establish a successful system that will permit tax authorities... --- ### Introduction of New Rules for E-Commerce in Philippines - Published: 2024-02-05 - Modified: 2024-02-05 - URL: https://1stopvat.com/introduction-of-new-rules-for-e-commerce-in-philippines/ - Article content types: Blog post - Business fields: Other - Countries: Philippines On December 5, 2023, the President of the Philippines signed the Internet Transactions Act 2023(ITA) into law, introducing many novelties concerning electronic commerce operations covered by domestic tax regulations.   Timeline  The Law is effective from December 20, 2023, but its enforceability shall start within 18 months from publication. The transitory period of 18 months is given to all economic operators in the scope to align their operations with the new requirements.   Regulatory Changes  The provisions of the Internet Transactions Act should cover e-commerce transactions within the scope of the B2B and B2C when (ⅰ) one of the parties is established in the Philippines or has a place of business there or (ⅱ) where the party has established significant presence within the country.   The scope of the Law applies equally to the following types of taxpayers(natural or legal persons):  Digital Platforms; Electronic Marketplaces; Online Merchants; E-retailers. The new responsibilities introduced by the regulation regarding the digital platforms and electronic marketplaces can be related to DAC 7 requirements that refer to the obligations of the platform to acquire pre-defined identifying information from reportable sellers operating on the platform.   This information should be gathered by the responsible Platform or Marketplace, verified and validated, and, when necessary, shared with the supervising authorities.   Additional responsibilities of the e-retailers and online merchants are based around the compliance of sharing truthful information about the supplier in question, respecting new terms and conditions for the e-commerce transactions, safeguarding data privacy, and enabling efficient... --- ### Introduction of Online VAT Declaration System in Hungary  - Published: 2024-01-31 - Modified: 2024-01-31 - URL: https://1stopvat.com/hungary-introduction-of-online-vat-declaration-system/ - Article content types: Blog post - Business fields: Other - Countries: Hungary In the last months of 2023, the Hungarian National Tax and Customs Administration(NAV) worked on preparing the last pieces of the project related to modernization of the NAV systems related to control, validation, and submission of VAT returns.   The Hungarian tax authorities acknowledge that making a significant step towards digitalizing their system is necessary, mainly based on submitting paper-based tax return forms. One of the main priorities is to make VAT compliance less burdensome for taxpayers from the paper-trail-based traditional manner of reporting to make the entire process more transparent, efficient, and flexible.   Timeline  The taxpayers should be able to consult the VAT-related data gathered from various sources through their online account on the NAV portal starting from January 1, 2024.   They will have the opportunity to submit their first eVAT return through NAV e-VAT service starting from: February 1st, 2024 - if they submit a declaration monthly; April 1st, 2024 - if they submit a declaration quarterly; January 2025 - if they submit a declaration yearly. Scope of changes  The modernization of the NAV tax reporting system opens the possibility for businesses and taxpayers to move from the traditional paper filing system towards the online system, where the return can be prepared, audited, and filed electronically.   To enjoy the benefits of the NAV portal, taxpayers should register and create an account on the website.   The eVAT system permits taxpayers to check in one place all the data that NAV has collected through the e-reporting... --- ### Latest Updates  E-Invoicing and E-Reporting in Romania - Published: 2024-01-16 - Modified: 2024-02-05 - URL: https://1stopvat.com/latest-updates-e-invoicing-and-e-reporting-in-romania/ - Article content types: Blog post - Business fields: Other - Countries: Romania The Romanian Government adopted Emergency Ordinance no. 115/2023, which introduced a few novelties concerning e-Invoicing for B2B transactions where the place of supply is within the country.   Novelties and Clarifications E-Invoice Issuance From December 15, 2023, until June 30, 2024, in situations where both supplier and recipient are enrolled in the RO e-invoice system, the e-invoice should be reported within the deadline of 5 calendar days from the date of invoice issuance or within other deadlines if defined differently according to the Fiscal Code. The grace period until June 30, 2024, should be provided for not following the deadline of 5 calendar days for non-issuance of the e-invoice for B2B transactions. Transactions out of scope  There are transactions upon which there is no obligation to be followed by the issuance of the electronic invoice or after which there is no obligation of the seller to report the transaction in question electronically. The following types of transactions are out-of-scope of the e-invoicing and e-reporting mandate:  Transactions covered by the issuance of simplified invoice; Invoices issued to persons not established and/or without VAT registration in Romania; Provision of services for which there is no obligation to follow Romanian invoicing rules; Intra-community supply of goods and services; Exports. Penalties  Starting from July 1, 2024, for non-compliance with the obligation to issue exclusively structured e-invoices for B2B transactions(excluding exempted ones), the penalty of 15% of the invoice value shall be applicable for both parties. So, the issuer and recipient should be labeled as... --- ### One-Stop Shop Schemes - Brief Overview - Published: 2024-01-10 - Modified: 2024-01-10 - URL: https://1stopvat.com/one-stop-shop-schemes-brief-overview/ - Article content types: Blog post - Business fields: Other The European Union introduced the E-Commerce VAT (Digital VAT) package on July 1, 2021. The adoption of the new pieces of legislation was seen as a necessary step to move forward with the digitalization of administrative processes on the EU level, establishing a digital apparatus that will make the business life of taxable persons operating in the EU easier, as well as it will make the battle with VAT fraudsters less complicated.   The E-Commerce package introduced an entirely new simplified tax reporting scheme called Import One-Stop Shop( or IOSS); it has also enlarged the scope of transactions that can be reported through the One-Stop Shop Union and non-Union scheme.   Along with expanding supplies that can be cumulatively reported via OSS schemes, the types of taxable persons who can benefit from them have also grown.   Two and half years have passed since the adoption of the e-Commerce package, and the results gathered from different credible sources unanimously show that it was, and still is, a massive success.   This can be concluded by many parameters, such as:  Number of taxable persons registered to one or more OSS schemes; Reduced cases of non-compliance; Less bureaucracy for taxable persons and tax authorities; Faster and more efficient administrative cooperation between national tax authorities; Consistent decrease of the EU VAT Gap; Lower national VAT Gap in the Member States. Special Schemes One Stop ShopEU VAT E-Commerce Package - Benefits of EU special schemes- Distinctions - Similarities - PotentialOSS Non-Union SchemeOSS Union SchemeImport... --- ### Update of the E-Invoicing and E-Reporting Timeline in France - Published: 2024-01-03 - Modified: 2024-01-03 - URL: https://1stopvat.com/update-of-the-e-invoicing-and-e-reporting-timeline-in-france/ - Article content types: Blog post - Business fields: Other - Countries: France The government’s newly adopted roadmap for introducing electronic invoicing and digital reporting for B2B transactions has encountered formidable challenges due to opposition from the Senate. In the first reading, the senators expressed different views concerning the timeline for implementing the transformation of invoicing operations for businesses operating in France. The Senate proposed and adopted the following timeline for the nationwide implementation of e-reporting and e-invoicing for all categories of taxpayers within B2B operations.   The present situation states that there is no consensus between the two legislative chambers, so the joint committee will be invoked as the procedural step to resolve the different views on one of the country's most significant tax modernization projects.   Timeline and Impact Type of obligationCategory of business Deadline adopted by SenateReceiving of e-invoicesAll types of businesses July 1, 2025Issuance of e-invoicesLarge businessesJuly 1, 2025Medium-sized enterprisesSeptember 1, 2026SMEs and micro-entreprisesSeptember 1, 2027Digital ReportingLarge businessesSeptember 1, 2026Medium-sized enterprisesSeptember 1, 2026SMEs and micro-entreprisesSeptember 1, 2027 The Senate has also modified part of the adopted proposal by the National Assembly, including parts of the provision that permitted the government to postpone the deadlines by decree for the additional quarter. The proposal adopted by the Senate left this possibility open regarding the Digital Reporting mandate. Aleksandar Delic1stopVAT Indirect Tax Researcher (Global Content) --- ### VAT rates Changes in Romania - Published: 2023-12-28 - Modified: 2024-01-03 - URL: https://1stopvat.com/vat-rates-changes-in-romania/ - Article content types: Blog post - Business fields: Other - Countries: Romania The Law on Fiscal Changes, published in the Official Gazette at the end of October 2023, has brought many significant tax changes. Some of those modifications cover VAT rate changes.   Timeline The VAT rate changes will be applicable starting from January 1, 2024.   Impact The adopted law introduced the following changes:  The increase of VAT rate to 19% for food with added sugar; in this way balancing the levied rate for sugary non-alcoholic drinks; Restaurant and catering services remain at the 9% VAT rate, except for sales of alcoholic and non-alcoholic beverages(sugary drinks), subject to the 19% VAT rate; Increase of VAT rate from 5% to 9% for services related to access to malls, amusement parks, fairs, exhibitions, cinemas, cultural events, and sporting events. Aleksandar Delic1stopVAT Indirect Tax Researcher (Global Content) --- ### Proposal to Increase the Registration Threshold in Slovakia - Published: 2023-12-27 - Modified: 2023-12-27 - URL: https://1stopvat.com/proposal-to-increase-the-registration-threshold-in-slovakia/ - Article content types: Blog post - Business fields: Other - Countries: Slovakia The draft law amending the VAT Law has been submitted to the Parliament, in which, among other points, the provision covering the registration threshold currently used could be modified.   Timeline The Ministry of Finance proposed increasing the registration threshold from EUR 49,970 to EUR 75,000 starting from July 1, 2024.   Effect Suppose the amendment is adopted through the Finance Law for 2024. In that case, the already registered taxpayers with a turnover of less than EUR 75,000 in the last 12 consecutive months will be permitted to de-register.   The government sees this measure as an excellent way to help businesses in economically challenging times.   Aleksandar Delic1stopVAT Indirect Tax Researcher (Global Content) --- ### CESOP Framework - EU Cross-Border Payments Reporting and VAT Compliance - Published: 2023-12-21 - Modified: 2024-01-09 - URL: https://1stopvat.com/cesop-framework-eu-cross-border-payments-reporting-and-vat-compliance/ - Article content types: Article - Business fields: Other Introductory notes Almost four years have passed since the Council adopted a legislative package establishing a framework for requesting payment service providers to transmit information on cross-border payments when specific requirements are met.   The information to be transmitted to the Central Electronic System of Payment Information(CESOP) is the one that captures mandatory information related to the payment service providers involved in the cross-border payment, as well as to the payee(merchant), the beneficiary of the payment.   From January 1, 2024, Payment Service Providers should be able to collect, process, generate, transmit, and store all mandatory payment information as indicated in the Council Directive 2020/284 and Council Regulation 2020/283, and accompanying EU Commission Implementing Regulation 2022/1504.   PSPs should transmit the collected payment service information to the tax authority of their Member State of origin or their host Member State. This is conditioned by the circumstances of the number of payment service providers intermediating in the transaction.   This regulatory framework has been introduced as an additional tool in fighting against VAT fraud in the E-commerce sector.   The payment service providers will be responsible for reporting the VAT-related transactional data of their clients(online merchants and marketplaces) to the responsible tax authorities.   CESOP Framework Adopting the CESOP regulatory framework can be considered the deployment of the additional tax technology tool by which the EU Commission is trying to combat VAT fraud.   The amendments to the VAT Directive introduce the reporting obligation of PSPs established in the EU to... --- ### Amazon - Challenges of VAT Compliance for Merchants and Suspension of Accounts - Published: 2023-12-13 - Modified: 2023-12-13 - URL: https://1stopvat.com/amazon-challenges-of-vat-compliance-for-merchants-and-suspension-of-accounts/ - Article content types: Article - Business fields: Other Digital Marketplaces  Establishing e-commerce digital marketplaces such as Amazon, Alibaba, eBay, and others has allowed businesses in the EU and beyond to offer their products to customers and residents in different countries.   The level of cross-border transactions has multiplied in the last 15 years. The abovementioned digital marketplaces have mainly attracted small and medium-sized businesses and allowed them to operate cross-border, which is much less the bureaucratic hustle and bustle often inherently connected to opening a brick-and-mortar shop in the countries where your customers reside.   E-commerce marketplaces have created a new business model, and national and international regulators are pressured to develop effective legislative frameworks to keep pace with this new business ecosystem.   Legal and technological challenges  As has often happened in the last 15 years when ICT is in the picture, the fast pace of technological growth and flexible cross-border operating manner must be accompanied by new legislation. As we are witnessing, it can take years or even more for a country or international regulator to develop an adequate legal framework to regulate a new business landscape without putting too much pressure on SMEs and other trading entities liable for tax.   Amazon can suspend the supplier’s account for various reasons, some of which could be attributed to not respecting the terms and conditions related to products offered for sale, bad review rating of the seller, bad customer service, poor quality of shipped products, etc.   However, in this article, we examine why Amazon could suspend... --- ### Global Overview - VAT Changes Starting from January 2024 - Published: 2023-12-07 - Modified: 2024-01-09 - URL: https://1stopvat.com/global-overview-vat-changes-starting-from-january-2024/ - Article content types: Article - Business fields: Other As 2023 comes to an end, let’s take a brief but important tour of some of the most significant changes regarding global VAT-related matters that should be implemented from the first days of 2024. CountryDescription of changeDate of applicability LuxembourgThe application of previously introduced VAT measures related to reducing VAT rates is coming to an end, and next month, the VAT rates will return to pre-reduction levels. Standard rate: 17%;Intermediate Reduced rate: 14%; Reduced rate: 8%;Super Reduced rate: 3% (haven’t changed in 2023). January 1, 2024SwitzerlandAfter the amendment of the VAT act and public support, the country will increase VAT rates, so the new rates will be:Standard rate: 8. 1%;Reduced rate: 2. 6%. January 1, 2024LiechtensteinAmendment of the VAT act introduced the following changes:Standard rate: 8. 1%;Reduced rate: 2. 6% (for specific types of supply, e. g. food delivery services);Rise of VAT rate for accommodation services: 3. 8%. January 1, 2024GermanyThe German authorities have extended the reduction of STD VAT rate for restaurant and catering services as an answer to the strongly hit hospitality sector due to the effects of the pandemic. The reduced rate's last extension expires on December 31, 2023. The rate for the restaurant and catering services shall change from the present 7% to 19%(which is the STD VAT rate). January 1, 2024LithuaniaIncrease of the registration threshold for domestic taxpayers from present - EUR 45,000 to EUR 55,000. The government believes that increasing the registration threshold will help mainly small businesses providing services to end customers.  Pending approval... --- ### Digital Platforms - Deemed Supplier Liabilities - Published: 2023-12-05 - Modified: 2024-01-09 - URL: https://1stopvat.com/digital-platforms-deemed-supplier-liabilities/ - Article content types: Blog post - Business fields: Other The European Union E-Commerce package introduced many significant changes to electronic commerce transactions. One of those novelties was the introduction of the deemed supplier provision.   The deemed supplier provision was introduced to enhance VAT compliance within the e-commerce sector. It transfers the VAT liability from the supplier/seller to the taxable person, facilitating the supply of goods via the digital marketplace.   So, based on these provisions, the facilitator - the taxable connector between the supplier and customer- is held as the liable person from the VAT perspective.   From the moment the amendment of the EU VAT Directive became effective for specific types of supply of goods and under mandated requirements, the VAT liability should be transferred from the underlying supplier to the digital marketplace.   The digital marketplace is treated as a deemed supplier for the following types of supplies where mandatory conditions are met:  Distance sales of Low-value goods(goods in consignment with the intrinsic value of less than EUR 150) imported from third countries or third territories by the underlying supplier(EU/non-EU established); Domestic and intra-community distance supply of goods where the underlying supplier is non-EU established, no matter the value of goods. The E-commerce package is applicable from July 1, 2021 onwards.   --- ### Mandatory B2B E-Invoicing and E-Reporting Roll-out in 2024 in Romania - Published: 2023-11-29 - Modified: 2023-11-29 - URL: https://1stopvat.com/mandatory-b2b-e-invoicing-and-e-reporting-roll-out-in-2024-in-romania/ - Article content types: Blog post - Business fields: Other - Countries: Romania The President of Romania has issued a Decree by which the previously implemented law for mandatory B2G e-invoicing has been amended due to the expansion of the mandate for e-invoicing and e-reporting for B2B transactions. After obtaining the derogation from the Council to introduce mandatory B2B electronic invoicing, this July, the President gave his final blessing by enacting the law, which stipulates that starting from January 1, 2024, the electronic invoicing mandate will cover B2B transactions. Timeline Starting dates and accompanying sanctionsJanuary 1, 2024 - March 31, 2024April 1, 2024 - June 30, 2024July 1, 2024The first three months of 2024, as regards the e-invoicing and e-reporting for both issuers of invoices and recipients, will be treated as non-penalty months. The economic operators can continue to issue invoices as they mostly do nowadays, in paper form, PDF, or using another format of electronic or digital invoices.  The grace period covers both resident and non-resident businesses operating in Romania. Resident companies should electronically report issued invoices within five working days of their issuance. A penalty between RON 1000 and 10,000 can be expected if not.  Resident recipient ↓Starting from this date, the compliance burden as regards the electronic invoicing is shifted to the recipient of the invoice. The recipient should exclusively accept structured XML e-invoice. If it agrees to other types of invoice, the penalty should be taken.  Non-resident economic operators registered in Romania for VAT purposes can continue to issue Tax Invoices like they do today, but they should electronically... --- ### Non-Resident Digital Platform Operators VAT Liability in Ivory Coast - Published: 2023-11-24 - Modified: 2023-11-24 - URL: https://1stopvat.com/non-resident-digital-platform-operators-vat-liability-in-ivory-coast/ - Article content types: Article - Business fields: Other - Countries: Ivory Coast The government of Ivory Coast has dedicated a lot of time, effort, and willingness to shape the indirect tax regulations following the continuous changes in the digitally oriented business environment.   As we have witnessed since the beginning of 2010, the traditional way of conducting business transactions has radically changed due to the global expansion of e-commerce operations and digitalization.   The birth of the Platform Economy has changed how transactions are built through a change in the number of participants for the transaction and the structural differentiation of more than one transaction for the main sale in question.   In the last years, the Government has been working on establishing an efficient legislative framework to combat productively and intelligently the losses of uncollected VAT caused by the non-regulated Platform Economy ecosystem. The State Budget Law for the year 2022, which had an amendment of the General Tax Code in one of its parts, introduced the institute of VAT liability for supplies made by Non-Resident Digital Platform Operators to customers based in Ivory Coast.   Timeline Starting April 9, 2024, Non-Resident Digital Platform Operators should register, charge, collect, and remit VAT according to the instituted simplified procedure and deadlines designed explicitly for this group of taxpayers.   Impact Through a tax explanatory note issued by the General Directorate of Taxes on October 9, 2023, the Ivory Coast Tax Administration has announced that starting from April 9, 2024, it will mandate the simplified VAT registration procedure and accompanying electronic submission of... --- ### Amazon - Deemed Supplier Liability and Blocked Merchants' Accounts - Published: 2023-11-14 - Modified: 2024-01-09 - URL: https://1stopvat.com/amazon-deemed-supplier-liability-and-blocked-merchants-accounts/ - Article content types: Article - Business fields: Other Amazon, a global e-commerce tech giant, has pulled a dragnet investigation into its European marketplaces. The US stronghold in the last period has decided to convey a thorough VAT compliance audit of accounts of its European registered users.   Amazon and similar worldwide operative e-commerce platforms conduct this type of detailed audit regularly as a necessary operation to decrease inaccurate information in its marketplace.   Legislative Framework The EU e-commerce package of regulations, which came into force on July 1, 2021, has noticeably reshaped the legislative framework for all tax responsible e-commerce participants.   The regulations have introduced important and extensive responsibilities for the Digital Platform operators and underlying suppliers.   The Deemed Supplier legal term was attached to the operative model of the digital platform and introduced a new level of responsibility for the operations handled through the platform.   The Digital Marketplace should be treated as a deemed supplier if it facilitates the following:  Distance sales of goods imported to the EU with a value not exceeding EUR 150 and/or Supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier is not established in the EU (domestic supplies and distance sales within the EU are covered). These provisions and the connected case law put an essential burden of responsibility on the Platform operations. The Platform operator is responsible for charging, collecting, and remitting taxes if the underlying supplier isn’t doing it per the law. Plus, the interest and penalties can occur in... --- ### First Steps Towards B2B E-Invoicing Mandate in Montenegro - Published: 2023-11-09 - Modified: 2023-11-14 - URL: https://1stopvat.com/first-steps-towards-b2b-e-invoicing-mandate-in-montenegro/ - Article content types: Blog post - Business fields: Other - Countries: Montenegro Representatives from the Ministry of Finance of Montenegro, alongside the Minister in the last week of October, held a roundtable discussion about electronic invoicing and digital reporting. This meeting is the logical next step after the talks held in September 2023, when representatives from the Montenegro Government started the open dialogue about the possibility of licensing a Serbian centralized E-Invoicing Platform.   The roundtable discussion had a positive outcome, and the Serbian Government permitted Montenegro to use its state-developed centralized E-Invoicing Platform through a free license for three years.   Timeline  At the present moment, there hasn’t been any sort of update concerning the timeline for the introduction of the electronic invoicing system.   Based on the license's validity period starting next year, the development of the local centralized E-Invoicing Platform could start.   Technological Landscape of Tax Reporting  A few years back, the Ministry of Finance, alongside the Tax Administration, had designed the reform of the VAT reporting system for the retail sector. The so-called fiscalization system has been radically changed. For many years, Montenegro, as well as many other neighboring countries, had a so-called hardware-based fiscalization system in place when we talked about reporting VAT data from the retail sector.   This year, the reform has been finished, and the VAT reporting system has been entirely digitalized, which can be seen by moving from an exclusively hardware-based cash register system to online - digital reporting of VAT data for B2C transactions within retail.   Looking at this gradual... --- ### VAT in the Digital Age (ViDA) Single VAT Registration (IV) - Published: 2023-10-24 - Modified: 2023-10-24 - URL: https://1stopvat.com/vat-in-the-digital-age-vida-single-vat-registration-iv/ - Article content types: Article - Business fields: Other The E-Commerce package, which came into effect on July 1, 2021, was the last significant reform implemented by the EU institutions when it comes to simplifying the procedure for VAT compliance for EU and Non-EU taxpayers making transactions where the place of taxability is based within the EU.   Let’s make a short briefing on the most noticeable changes introduced by the E-Commerce package when it comes to the simplification of VAT-related compliance procedures for taxable suppliers:  The extension of the scope defined for the Mini One Stop Shop(MOSS) to One Stop Shop(OSS); The deletion of import VAT exemption for low-value commercial goods within the EU; The extension of the scope of transactions covered by the OSS schemes; Introduction of the Deemed Supplier legal institute for specific B2C distance supply of goods for sales declared via all three types of simplification schemes when all mandatory requirements are met; Introduction of EU-wide EUR 10 000 threshold for EU-based suppliers of all types of services within B2C as well as for specific categories of B2C distance sales of goods; Introduction of the EUR 150 threshold for import of low-value goods in consignments from third countries or third territories into the EU(declaration via IOSS scheme). Thanks to the introduction of the E-Commerce package in 2021, the rules defining the place of taxation have been updated. From this moment on, based on the fact that the country-based thresholds have disappeared, the Value Added Tax became due in the Member State where the customer is... --- ### Possible Increase of VAT Rate in Kazakhstan - Published: 2023-10-17 - Modified: 2023-11-14 - URL: https://1stopvat.com/kazakhstan-possible-increase-of-vat-rate/ - Article content types: Blog post - Business fields: Other - Countries: Kazakhstan The Ministry of National Economy of Kazakhstan proposes gradually increasing the standard VAT rate. This significant change, presented through the amendment of the Tax Code, has been addressed by the Vice Minister of Economy at the short briefing after the government consultations.   Timeline  Based on the draft version of the Tax Code amendments, the VAT rate increase should be gradual, resulting in a rise from 12% to 16% starting in 2025.   Impact  Government officials see the necessity to increase the VAT rate primarily based on two highly significant facts: The VAT rate in Kazakhstan is significantly lower compared to European Union countries and neighboring countries with which the KZ businesses are mainly competing; An increase in the VAT rate will permit KZ businesses more “level” playing field when competing with foreign exporters; if the rate increases, their “playing” field for uncompetitive prices will decrease or even diminish to some extent in some cases. Aleksandar Delic1stopVAT Indirect Tax Researcher (Global Content) --- ### VAT in the Digital Age (ViDA) Platform Economy (III) - Published: 2023-10-13 - Modified: 2023-10-24 - URL: https://1stopvat.com/vat-in-the-digital-age-vida-platform-economy-iii/ - Article content types: Article - Business fields: Other The second pillar of the European Commission’s proposal for the VAT in the Digital Age is the one that is entirely focused on the modern, technologically advanced, and exponentially growing type of business sector - labeled with not-so easily comprehensible term Platform Economy.   The thorough and broad work conferred to the selected number of tax experts, who on behalf of the EU Commission, have had in a detailed manner examined the landscape of Platform Economy, has undoubtedly shown the discrepancy between expected and actual VAT revenue from the supplies made through the usage of Digital Platforms as facilitators.   It’s interesting to note that EU legislation still hasn’t captured through the definition the structure, possible tax-wise scenarios, and legal challenges of the possible operations processed through the Digital Platform through which the underlying services are provided, and not goods which have been covered and explained in the EU e-Commerce package from July 2021.   To understand the economic force of the Platform Economy, just within the EU 27 context, it's necessary to emphasize that between 2015 and 2019, the money generated through this multi-sided business model has tripled.   Just to put some numbers in the picture to have a more transparent answer as to why the EU is pushing for the review and amendments of the EU VAT legislation:  There are more than 1,500 operative digital platforms with significant presence just in the EU; Digital Platforms(excluding the ones operating in the advertising sector) generated around EUR 67 billion... --- ### Belgium Plan to Introduce E-Invoicing Mandate on B2B Transactions from 2026 - Published: 2023-10-11 - Modified: 2023-10-17 - URL: https://1stopvat.com/belgium-plan-to-introduce-e-invoicing-mandate-on-b2b-transactions-from-2026/ - Article content types: Blog post - Business fields: Other - Countries: Belgium The Belgium Council of Ministers has accepted the proposal - draft bill of the Minister of Finance regarding the introduction of the mandate for Electronic Invoicing when it comes to domestic transactions between locally established taxpayers.   The plan for expanding the e-invoicing mandate to business-to-business transactions has already been tried before without success. Based on the present momentum, the tide has changed, and now there is a much bigger chance that the delegated authorities will implement the project.   Timeline Based on the preliminary documentation, the e-invoicing mandate could be introduced as early as January 1, 2026.   Present situation  Belgium enacted a Royal Decree in 2022, which stipulated that the economic operators must issue e-invoices to public authorities for particular types of transactions. The implementation of this mandate has been gradual. The Belgian authorities at this moment are favorable of the PEPPOL network and see it as highly functional, which guarantees easier interoperability than others. It’s reasonable to think that B2B transactions will primarily be exchanged through this IT environment.   The first version of the draft bill has been submitted to the reading by the Council of State, the High Council for the Self-Employed and SMEs, Agrofont, and ITAA. In the following months, significant updates can be expected from the authorities.   Impact An important fact to mention at this point is that the draft version of the bill doesn’t mention a phased mandate introduction.   The present plan of the Council of Ministers is to introduce... --- ### VAT in Digital Age (ViDA) Digital Reporting Requirements (II) - Published: 2023-10-06 - Modified: 2023-10-24 - URL: https://1stopvat.com/vat-in-digital-age-vida-digital-reporting-requirements-ii/ - Article content types: Article - Business fields: Other We deeply explored VAT in the Digital Age reform in the first article from the ViDA series, published last week. We have made a short walk into memory lane to locate the main drivers behind this broad and complex reform.   We have seen the data that undoubtedly led the EU officials, representatives of business sectors, international trade associations, and many tax experts to pave the way for the new necessary package of tax reforms.   The continuously growing percentage of VAT Gap at the EU level, which is mainly due to outdated compliance-tracking tools for intra-EU transactions, has shown the necessity to develop modern, digital tools which will be developed following the challenges that businesses encounter in the contemporary business environment, as well as to in synchronicity with the automated tax technology tools available, and with great success used in the Global market.   Presented reports and detailed assessments have shown undisputedly the need to change VAT reporting systems within the European Union drastically. The system in place, with accompanying minor changes, was put in place originally 30 years ago when we had a radically different commerce environment at the EU level and within respected Member States.   When we analyze the official reports that describe the effectiveness of the EC Sales Lists from the year they were implemented to this day, we can see how the usefulness has been losing its momentum.   It is essential to emphasize the importance and effectiveness of the EC sales lists in... --- ### Romania Steps Towards Country-wide B2B E-invoicing - Published: 2023-10-04 - Modified: 2023-10-17 - URL: https://1stopvat.com/romania-steps-towards-country-wide-b2b-e-invoicing/ - Article content types: Article - Business fields: Other - Countries: Romania Just a bit less than two months after obtaining the favorable decision from the European Council, which gave Romania the green light to introduce the mandate of B2B e-invoicing for domestic transactions, the Romanian Ministry of Finance has published the draft version of the new budgetary law, in which between other relevant fiscal measures has given proper space in addressing the topic of e-invoicing.   The Ministry of Finance is meticulously implementing the e-invoicing mandate for B2B transactions. This move is mainly based on the necessity to reduce the national VAT gap, and as the statistics show, e-invoicing and e-reporting tools are significant mechanisms when integrated properly to combat taxpayers' tax evasion and illicit behavior.   Timeline The preliminary timeline, defined in the draft version of the Budget Law, is the following one:  The E-Invoicing mandate should be operative for B2B transactions starting from January 1, 2024; The first three months should be allocated to the establishment of the invoicing reporting system and the IT infrastructure and making sure that everything works properly due to the complexity of the project; Ministry of Finance proposes that the period between January 1, 2024, and March 31, 2024, should be treated as the grace period for taxpayers obliged to report invoices to the RO e-Invoice system; Starting from July 1, 2024, all taxpayers to whom the reform refers must be able to transmit the e-invoices to the clearance system as defined by law. Impact Based on the draft version of the Budgetary Law... --- ### VAT in the Digital Age (ViDA) Introduction (I) - Published: 2023-09-26 - Modified: 2023-10-24 - URL: https://1stopvat.com/vat-in-the-digital-age-vida/ - Article content types: Article - Business fields: Other The representatives of the European Commission submitted last December official proposals to change pivotal VAT legislation as a necessary step towards one of the most extensive reforms in the last 30 years regarding indirect taxation within the Single Market.   Let’s make a short stop and walk through the first practical steps made during the first semester of 2022 by the tax professionals who paved the way for the future legislative moves handled by the European Commission.   At the beginning of March 2022, tax experts contracted by the European Commission participated in drafting highly elaborated and detailed reports regarding all three pillars upon which the EU VAT reform is based.   These reports have been prepared in every detail, capturing all pivotal points that have led to the necessity of enforcing one of the most significant reforms of indirect taxation at the EU level. Behind the description of the mandatory steps to be made as regards the changes in the present legislative framework, a large piece of the report has been devoted to practical explanations supported by graphics and visible data capturing the information of the last decades, which directly shows why there is a need to move forward with the reforms. The final reports cover three subjects, which as such are pillars upon which the VAT reform is based:  The Digital Reporting Requirements; Single VAT Registration; The Platform Economy. With the final reports at hand, the representatives of the EC have initiated the preparation of the proposals for... --- ### Introduction of E-Invoicing Mandate for B2B in Germany - Published: 2023-09-07 - Modified: 2023-11-14 - URL: https://1stopvat.com/germany-introduction-of-e-invoicing-mandate-for-b2b/ - Article content types: Blog post - Business fields: Other - Countries: Germany Looking at the magnitude of the German economy, the Government has been operating meticulously in the last few years, looking at ways to create a business environment that is more efficient, streamlined, and less bureaucratic. This was observed both from the perspective of private and public sectors. One of the main challenges was reducing the administrative burden, costs, and not-so-efficient modality of invoicing used within the country.   A few years ago, the Federal Ministry of Finance and connected institutions within federal states initiated the digitization procedure regarding invoicing by implementing mandatory usage of the e-invoicing system within public procurement transactions.   The B2G E-Invoicing at the Federal and State levels is still ongoing since not all States have mandated the mandatory usage of e-invoicing in public procurement, as well as not for all commercial entities included in these transactions.   Last November and December, the EU Commission officials prepared a Proposal to amend the EU VAT Directive, which includes changes to Articles 218 and 232. Around the same time, the German Federal Ministry of Finance worked on a proposal for the Commission regarding e-invoicing for business-to-business transactions involving German businesses.   The Council of the European Union adopted the Implementing Decision, which gave the German government the green light to introduce mandatory B2B e-invoicing between businesses established in the country.   Timeline The Decision shall apply from January 1, 2025, until the earlier of the following dates:  December 31, 2027, or  The date from which the Member States should... --- ### Electronic Invoicing and Reporting in France - Published: 2023-09-06 - Modified: 2023-11-14 - URL: https://1stopvat.com/france-electronic-invoicing-and-reporting/ - Article content types: Blog post - Business fields: Digital services - Countries: France In the last years, we have witnessed a continuously enhancing rhythm of the implementation of e-invoicing and/or e-reporting mechanisms on the Global landscape. France, one of the founding countries of the EU, as well as one of the most powerful European economies, started a few years back with the gradual introduction of the e-invoicing apparatus within its boundaries.   France's E-Invoicing system was first introduced in commercial operations between private companies and public institutions.   A few years later, French institutions, in collaboration with the EU institutions and private sector representatives, started the grandiose and highly complex project called E-Invoicing and E-reporting for business-to-business transactions.   The mandatory usage of e-reporting and/or e-invoicing for private companies mainly established in France should start gradually, depending on the type of the company. Important to emphasize here is that the mandate of e-invoicing and/or e-reporting is primarily centered around companies established in France. Still, this mandate doesn’t a priori mean that non-resident companies are out of scope. In some specific situations, the mandate covers their operations as well.   Timeline  The initial timeline for mandatory implementation of e-invoicing and e-reporting procedures, as defined by regulation, was the following one:  From July 1, 2024, all companies established in France will be obligated to receive e-invoices.   From July 1, 2024, large companies will be obligated to send e-invoices.   From January 1, 2025, medium-sized companies will be obligated to send e-invoices.   From January 1, 2026, small companies and micro-enterprises will be obliged to... --- ### August Insight About E-invoicing in Romania - Published: 2023-08-24 - Modified: 2023-11-14 - URL: https://1stopvat.com/august-insight-about-e-invoicing-in-romania/ - Article content types: Blog post - Business fields: Digital services - Countries: Romania The Council of the European Union has taken a significant step in Romania by extending mandatory e-invoicing for B2B transactions. This move aligns with the drive towards digitalization and efficient business practices, following careful evaluation and collaboration between the EU Commission and Romanian authorities. Romania – The Council of the European Union has adopted the Implementing Decision based on the proposal from the EU Commission to extend the mandatory e-invoicing in Romania for B2B transactions.   Based on the present situation, deriving from the EU VAT Directive where the interested country needs to ask for a derogation from the “blocking” provisions – mainly Article 218 and 232, which don’t allow for a direct possibility of the interested country to implement mandatory e-invoicing between established businesses in their country, for Romania, as for most countries, it took some time to be in position to obtain the positive opinion from Commission, and later on from Council to extend the mandatory e-invoicing system to B2B transactions.   The Council Implementing Decision extends the applicability of e-invoicing within Romania for established businesses in B2B transactions in alignment with the following timeline:  The Decision shall apply from January 1, 2024, until the earlier of the following dates:  December 31, 2026, or  The date from which the Member States should apply any national provisions based on the Council Directive, which amends the VAT Directive – following the initiative for the digitalization of VAT, primarily based on the changes of the respectable Articles 218 and 232 of VAT... --- ### Italian E-Invoicing system - Published: 2023-08-18 - Modified: 2024-10-16 - URL: https://1stopvat.com/italian-e-invoicing-system/ - Article content types: Blog post - Business fields: Other - Countries: Italy The Italian E-Invoicing system debuted on July 1, 2018, when the private companies which are acting as suppliers to Italian public institutions have been obliged to issue structured e-invoices in the FatturaPA format. The implementation of the E-Invoicing project is almost done, due that just the last phase, which covers the mandatory obligations of small taxpayers to issue exclusively e-invoices in their B2B/B2C is still pending the deadline. At the present moment, the last group of taxpayers should be prepared to start with the electronic invoicing system from January 1, 2024.   The Italian E-Invoicing System (Sistema di Interscambio), i. e. , is the online platform developed/supervised by the Italian Revenue Agency (Agenzia delle Entrate), which manages the operative part of the e-invoicing system.   All invoices, as regards the categories of taxpayers to which the mandate applies, must be transmitted through the SDI online platform, so the invoice could be treated as fiscally and commercially valid. --- ### Global trend – Steady Growth of VAT rates - Published: 2023-08-16 - Modified: 2023-11-14 - URL: https://1stopvat.com/global-trend-steady-growth-of-vat-rates/ - Article content types: Article - Business fields: Other What lies behind government politics to increase the VAT rates? It has been witnessed in the last few years and more that countries all around the world are intrinsically connected to the necessity to raise the VAT rates. Of course, this doesn’t mean that the governments haven’t acted with some degree of “empathy” during Covid-19 times and decreased to some extent VAT rates, mainly the ones which have been connected to grocery items, food, or medicines to help people cope better with the economic meltdown. When the pandemic has been “officially” finished, some of the countries have returned “fast” to the decreased rates to pre-Covid levels, and others have “run” towards the steady increase of their rates. This year we have seen that many countries have increased their VAT rates, even significantly, and in the next few years, we can expect that this trend will continue. Some states have already announced via legislation that this shall happen. Some of the countries which are planning to increase their VAT rates during the next two-year period are: Switzerland; Estonia; Singapore; Indonesia. To go back to our initial question, what lies behind the “risky” and “bold” move of the national governments to increase the VAT rates within their borders, and what effect would that produce as regards the domestic economy, as well as what kind of effect would that move create as regard that country and its international business environment? We would try to explain the drivers and effects of the VAT rate... --- ---