Learn how to get your VAT refund

By Olga / In EU VAT / August 30, 2023

The issue of VAT refund may come up when non-EU companies import goods to the EU and sell them via Marketplace. It arises because of two things: first, the marketplace collects and remits all VAT collected from buyers; and second, the company as an importer pays VAT at customs. The process of returning VAT can …


Spain: Extended Producer Responsibility (EPR)

By Lana / In EPR / August 14, 2023

On March 31, 2022, the Spanish Parliament subsequently approved the new waste law which explains how producers ought to take financial and/or financial and organizational responsibility for their waste. In Spain, a legislative concept known as extended producer responsibility (EPR) strives to lay on producers’ control for managing post-consumer products in lieu of consumers and …


How to check if a business is a VAT registered

By Olga / In EU VAT / July 26, 2023

For B2B cross-border sales in the European Union, it is important to understand if your buyer is registered for VAT.  It is important if you want to issue an invoice. Because sometimes a reverse charge mechanism can be applied when the seller and buyer registered for VAT businesses. VAT number check by company name For …


Extended Producer Responsibility (EPR) in Hungary

By Lana / In EPR / July 21, 2023

In Hungary, the Extended Producer Responsibility (EPR) mechanism will make producers and manufacturers responsible for the waste management costs of specific products, starting July 1, 2023. They will be responsible for the correct circular disposal of these waste products.   Who is considered responsible? • Original manufacturer/seller of the product; • If the product is …


Excisable goods

By Olga / In EU VAT / June 27, 2023

The procedure for collecting excise duty in the European Union has its own characteristics and rules. To successfully conduct business in the EU countries, you need to thoroughly know the fiscal policy of Europe, as well as all the intricacies of excise taxation. From this guide, you will learn what excisable goods are, which groups …


Important updates on EPR in the Netherlands (Textiles)

By Lana / In EPR / June 26, 2023

Presently, the Netherlands lacks specific regulations pertaining to extended producer responsibility (EPR) for textiles. However, from July 1, 2023, transformative changes will shape the Dutch clothing market, fostering the growth of sustainable textiles and reinforcing responsible practices.   Which products will be impacted? Previously, textile products could freely enter the Netherlands without any consideration for …


EPR in France (Textiles)

By Lana / In EPR / June 20, 2023

According to Article L541-10 of the French Circular Economy Law, you are considered a producer if you are generating waste in France. You are a producer if you meet at least one of the following conditions: You manufacture a product subject to EPR requirements in France and sell it domestically; or You import a product …


EPR packaging obligation in the Netherlands

By Lana / In EPR / June 16, 2023

In the Netherlands, both producers and importers are responsible for the waste from packaging materials, brought on the market. This is called Extended Producer Responsibility and each company that brings packaging and basket products must comply with the regulations from the 2014 Packaging Management Decree (Besluit Beheer Verpakkingen).   Packaging includes the following categories: composite …


EPR packaging obligation in Austria: registration & reporting

By Lana / In EPR / May 29, 2023

New EPR obligation in Austria for packaging recycling The new Austrian packaging ordinance, which came into force on January 1, 2023, regulates the financing of the collection, sorting, and recycling of recyclable materials according to the polluter-pays principle. All companies that put packaging on the market in Austria must pay for the recycling costs accordingly …


VAT reverse charge mechanism cases for sellers and buyers

By Olga / In EU VAT / May 28, 2023

A reverse charge for sellers   1   Supply between EU member states (EU-EU) Reverse charge is a special scheme when a buyer calculates VAT and pays it. It occurs in situations of cross-border sales when your buyer is a VAT registered business. Let me give you an example: French businesses sell software to businesses registered …


EPR Sweden

By Lana / In EPR / May 26, 2023

Update on EPR regulation in Sweden: Packaging Producer Responsibilities and Compliance Guidelines for 2023 It is important to note that the Swedish government has recently announced an ordinance (2022:1274) regarding producers’ responsibility for packaging. This regulation will be effective from January 1st, 2023. However, some provisions of this regulation will take effect at a later …


New EPR Obligations for Online Platforms in Austria

By Lana / In EPR / May 25, 2023

Austria has implemented new Extended Producer Responsibility (EPR) obligations for online platforms and their partners who sell in the country since January 1, 2023. Lovat offers assistance with EPR registration and filing to support you in managing your obligations effectively. Explore the details by visiting the link. We explain what these obligations entail, who they …


Reverse charge invoice for a buyer: 4 steps to be compliant

By Olga / In EU VAT / May 25, 2023

This article is for a business that receives an invoice with the note “reverse charge”. Because in such a situation obligation to calculate VAT is on the buyer and it can have serious consequences.   Reverse charge scheme – is a European approach to charge VAT on the destination principle (where the buyer is located). …


EIN number for non-US businesses

By Olga / In US SALES TAX / May 8, 2023

If you’re wondering what an EIN is, it’s a unique nine-digit number issued by the Internal Revenue Service (IRS) that serves as a Federal Tax Identification Number for businesses and other entities operating in the United States. Without an EIN, businesses cannot legally register for sales tax, which can lead to potential legal consequences. Non-US …


What is a VAT number?

By Olga / In CANADA GST/VAT / April 28, 2023

VAT  – Value-added tax is a consumption tax charged on the value added of goods and services as they move through the supply chain. This tax in different countries has different names for example GST – goods and service tax. Businesses registered for VAT  must collect the consumption tax at each stage of the supply …


9 requirements for non-EU companies for obtaining a VAT number in the EU

By Olga / In EU VAT / April 12, 2023

You’ve considered expanding your business into the European Union (EU) for some time. After extensive research, you realize that one of the most significant obstacles to selling your products in the EU is obtaining a Value Added Tax (VAT) number. Check out the basic rules about EU VAT for e-commerce sellers. We have prepared a …


Origin-based vs. destination-based sales tax rates: understanding the impact on businesses and consumers

By Olga / In US SALES TAX / April 6, 2023

Are you aware of the differences between origin-based and destination-based sales tax rates? These two types of sales tax rates significantly impact on businesses and consumers across the United States. Currently, there several origin-based sales tax states, where the sales tax rate is determined by the location where the product or service is sold or …


EPR Packaging Germany

By Lana / In EPR / January 18, 2023

Europe and the UK are gradually tightening their EPR compliance, registration, and reporting requirements. In 2022, we observed Germany and France leading the way in harmonizing national legislation with the basic principles of the Waste Framework Directive. This is the Extended producer responsibility(EPR) conception which is based on the ‘polluter pays’ principle. The Digital marketplaces …


Sales tax fundamentals for e-commerce sellers

By Olga / In US SALES TAX / January 11, 2023

This article is for those who are new to sales tax, here we will explain in simple words how it works. You started your online shop and going to sell online to USA buyers. If you have a warehouse you need to register for a sales tax permit in a state where you have a …


EPR in France (Sport and leisure goods)

By Lana / In EPR / December 30, 2022

On February 12, 2022, the decree of January 31, 2022, was published approving an eco-organization of the sector with extended responsibility for the producer of sporting and leisure articles. This new sector is part of the EPR (Extended Producer Responsibility), just like the Waste Electrical and Electronic Equipment (WEEE) household and professional sectors, and commits …


EPR in France (toys)

By Lana / In EPR / December 30, 2022

Who is considered by law to be a producer and/or marketer of toys? Are considered as producer and/or marketer of toys,  “all natural or legal persons who, in a professional capacity, either manufacture in France, or import, or assemble or introduce toys for the first time on the national market […] intended to be transferred …


Margin scheme for VAT on second-hand goods

By Olga / In EU VAT / December 16, 2022

The second-hand margin scheme is one of the VAT’s accounting schemes made available to help businesses in the UK, EU, and other countries. Find out the rules of the VAT’s margin scheme, which businesses are eligible to join it along with the benefits of doing so. What are margin scheme goods? The VAT on second-hand …


EPR thresholds by country

By Lana / In EPR / December 8, 2022

As waste directives came into force in Europe countries implemented local legislation for regulating waste turnover. This mainly concerns large manufacturers and importers, but in some countries, the registration threshold is low or equal to zero. Distributors of electrical and electronic equipment have other waste obligations. For more information, you can refer to the table …


DAC7 – the new type of registration for online marketplaces

By Olga / In MARKETPLACES / November 29, 2022

Marketplaces are gaining more and more popularity and influence on the world economy every day. That’s why government agencies are creating new tools to regulate their work, transparency of activities, and proper payment of taxes. One such tool is the DAC7 directive, which extends EU transparent taxation to digital. In this article, we will analyze what …


NFT sales, summary of global tax treatment

By Olga / In US SALES TAX / October 17, 2022

This article is about NFTs, which are the most common today – when an NFT is a digital code that grants the owner access to a digital good. In this article, I tried to give a general overview based on the opinion of countries that have already formulated their position in writing regarding the taxation …


Import to the UK and postpone import VAT

By Olga / In UK VAT / August 1, 2022

  When you want to import to the UK you don’t need to pay VAT at customs and then refund it. There is a possibility to account for import VAT in your VAT return. This scheme is available not only for UK-based businesses but also for non-UK businesses with UK VAT numbers. For parcels with …


Deemed supply invoices

By Olga / In UK VAT / July 11, 2022

  When online marketplaces act as deemed suppliers of goods a situation arises when it is necessary to issue invoices from a merchant to a marketplace. Let’s examine the invoicing rules for deemed supply in the EU and the UK. Deemed supply meaning is described as a sale where tax responsibilities are transferred to a …


Extended Producer Responsibility (EPR): new european obligations for e-commerce sellers who pack orders

By / In EPR / June 10, 2022

  The new type of reporting was introduced for online sellers who sell their products B2C. Packaging report – is the report about volumes of the package used in a country during a calendar year. This type of reporting exists in several countries such as Germany, France, Poland, the UK, Greece, Lithuania, and Slovakia. Germany …


Canada Marketplace facilitator tax rules

By Olga / In CANADA GST/VAT / April 12, 2022

Canada implemented marketplace legislation on the Federal level and on the provincial level. Canada consists of several provinces and each has GST/HST tax rates which differ from 5% to 15%. E-commerce operators should use the destination principle as a way to determine the tax rate for a sale. If you just started to operate in …


US sales tax rules for online marketplaces. Who pays the tax?

By Olga / In MARKETPLACES / April 12, 2022

The United States is one of those countries that have rules under which marketplaces are responsible for paying taxes on goods and services sold on this marketplace. It must be remembered that sales tax is set at the level of each state and this accordingly leads to the fact that the rules in each state …