Service

Cross-Border VAT Compliance

Selling across Europe means dealing with 27 VAT systems. EU law sets the framework, but every member state applies its own rates, invoicing rules, filing deadlines and enforcement practices. What is compliant in Germany is not automatically compliant in France or Poland.

For e-commerce businesses, the risk is rarely one big mistake. It is the accumulation of small ones: a wrong rate in one country, a missing registration in another, invoices that do not meet local requirements. Those tend to surface at the same time, usually when a payment provider or tax authority starts asking questions.

Why cross-border VAT is harder than it looks

  • Different rates. Standard VAT rates in the EU range from 17% in Luxembourg to 27% in Hungary, and reduced rates differ per product category and per country.
  • Different obligations. Depending on where your stock is, how goods move and who your customers are, you may need a local VAT registration, an OSS or IOSS registration, or none at all.
  • More data sharing. Since 2024, payment service providers report cross-border payment data to EU tax authorities under CESOP. Authorities can now see where money flows, which makes inconsistencies easier to detect.
  • Changing rules. The EU's VAT in the Digital Age (ViDA) package, adopted in 2025, will change registration and reporting for cross-border sellers over the coming years.

What our cross-border compliance service covers

  • VAT registration and filing in the EU countries where you are required to register.
  • Monitoring of legislative updates that affect your business.
  • Mapping of supply chains and transaction flows, so it is clear where VAT is due and who owes it.
  • Guidance on local invoicing requirements.
  • Audit preparation and representation when a tax authority opens an inquiry.

How we work

  1. Mapping. We chart how your goods and money move: supplier, warehouse, carrier, customer, payment provider.
  2. Obligations overview. For each market you sell to, you get a clear overview of what is required and what is not.
  3. Registrations and filings. We arrange the registrations that are actually needed and set up a filing calendar so nothing is missed.
  4. Ongoing monitoring. When rules change in a country you sell to, we tell you what it means for you.

Who this is for

This service is for online sellers who sell to consumers in several EU countries and want one point of contact instead of a separate adviser per country. It suits both EU-based and non-EU businesses, and both dropshipping and stock-based models.

If you only sell in one country, a local accountant is usually the better choice.

Frequently asked questions

Do I need a VAT number in every country I sell to?

Usually not. The OSS and IOSS schemes were designed to avoid that. Local registrations are mainly needed when you hold stock in a country or when a scheme does not cover your transactions. See OSS and IOSS consulting.

What is CESOP and does it affect me?

CESOP is the EU system that collects payment data from payment service providers. If you receive many cross-border payments, your transactions are visible to tax authorities, so your VAT reporting should match your payment data.

Can you represent us in an audit?

Yes. We prepare the documentation and handle correspondence with the tax authority. For disputes about assessments, see VAT dispute resolution.

Want to know which obligations apply to you? Start the free VAT assessment.