Accounting support for VAT in the EU

Having a VAT number in one of the EU countries is a prerequisite for registration in the OSS system. If you do not have a company in the EU, you can obtain a VAT number for a foreign company. However, since a tax representative (guarantor) in the EU is required when registering a VAT number for a foreign company, it is very difficult to obtain a number in practice.

To sell remotely within the EU, you only need to obtain one VAT number in one of the EU countries. However, if you use warehouses to store goods in more than one EU country, you will still need to register for VAT in each of these countries. If you are not sure whether you need to register for VAT in multiple countries, it is best to contact the Nexus team for advice.

Late filing and payment of VAT is subject to penalties and interest on the tax amount. These penalties differ for each EU country and depend on the period of delay and the amount of tax payable. For example, in Estonia, 0.006% of the tax payable will be charged for each day of delay, and a company could potentially receive a fine of EUR 32,000 for failure to file a tax return and failure to pay tax. In Ireland, the late payment penalty is 0.0274% per day of delay, and the potential penalty for failure to file a return is €4,000. However, in addition to fines, the tax authorities can apply more severe penalties, ranging from blocking accounts to banning businesses from the country.

Companies that use Amazon’s PAN EU Fulfilment service are required to have a VAT number for the location where their inventory is stored. This means that you will need to register a VAT number and file a VAT report in every EU country where you will use an Amazon warehouse for your goods. Cross-border transfers must be processed through EU sales lists.

Yes, the VAT reporting procedure in the EU is designed in such a way that any business can submit reports independently. We recommend learning more about how to do this on official resources:
Basic principles and legislation: https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/
Basic law on VAT in the EU:https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32011R0282
OSS VAT manual in the EU:https://vat-one-stop-shop.ec.europa.eu/guides_en