Understanding Autopilot mode vs. Autosubmit service 

By Olga / In Uncategorised / April 15, 2024

Lovat simplifies tax management for sellers, but you might come across terms like “autopilot” and “auto-submit” and wonder what the difference is. Don’t worry, this article will break it down for you!   Autosubmit Autosubmit is an additional service that allows you to file your returns directly to the tax office. As you fill out …


Extended producer responsibility in United States

By Bohdan / In EPR / April 8, 2024

Over the past year, extended product responsibility has become a frequent topic of discussion in government agencies in many US states. With the emergence of product liability rules, companies selling their products in the United States will be forced to think about and plan for the management of their products after their end-of-life. The upcoming …


What is a VAT number?

By Olga / In CANADA GST/VAT / February 20, 2024

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 …


Physical nexus for Amazon sellers

By Olga / In US SALES TAX / February 12, 2024

Storing goods across various states through FBA can complicate sales tax obligations for Amazon sellers. This article explores these complexities and offers guidance on determining sales tax nexus in different scenarios.   When you sell via Amazon FBA that means that your goods are stored in Amazon warehouses. Generally speaking, when a seller stores goods …


DAC7 – the new type of registration for online marketplaces

By Olga / In MARKETPLACES / January 31, 2024

DAC7 reporting deadlines postponed Some countries have announced extensions for the first reporting deadline, which was originally set for 31 January 2024 Until April 1 the German government has extended the deadline for submitting DAC7 reports. To February 19 Luxembourg has pushed the deadline back and granted an extension for DAC7 reporting. To February 2 …


Marketplace reporting obligations – USA

By Olga / In MARKETPLACES / January 29, 2024

Platforms facilitating sales of goods or services in the US market need to send every year an information report about income sellers/ merchants received via the platform the name of the report is Form 1099-K. This is an analog of DAC7 return in the EU.    This type of report is not only for online …


DAC7 – UK rules explained

By Olga / In MARKETPLACES / January 29, 2024

The first reporting period for Platform operators in the UK is the year 2024. UK introduced DAC7 reporting one year later than EU (DAC7).    Who must register and report for DAC7 in the UK? Any online platform that facilitates sales or exchange of goods or services. Even if it is excluded Platform.    Excluded …


VAT deregistration

By Bohdan / In UK VAT / December 8, 2023

VAT is an important aspect of a business. However, there are instances where businesses find it necessary to deactivate their VAT number. Understanding the proper cancellation process and comprehending its advantages and disadvantages is crucial in such scenarios.   Reasons for cancellation of VAT registration 1 Reduction in the volume of operations If a company’s …


VAT treatment of transfer of business in the EU

By Olga / In EU VAT / December 7, 2023

The situation of business transfer arises, for example, when an Amazon account is sold to another legal entity. The question of taxation of such a transaction often arises. The situation is often complicated by the fact that the account is sold along with goods remaining in warehouses in different countries. One of the ways to …


8 questions about resale certificate

By Olga / In US SALES TAX / November 30, 2023

Resale certificates let sellers buy goods from producers or wholesalers without sales tax. Typically, they buy goods for further resell these goods to final customers, who pay the sales tax at that point. When buying, the seller presents this certificate to the supplier of goods. Then, the seller of the goods doesn’t add sales tax …


VAT number reactivation. Step by step

By Bohdan / In UK VAT / October 16, 2023

A VAT number is a unique identification number used for tax purposes and is only issued to companies and individuals that are registered as VAT payers. A VAT number is a key aspect of taxation for businesses in the modern world. Loss of VAT number activity can lead to serious tax difficulties and related economic …


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 …


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 …