VAT reform makes exporting easier

The joint EU VAT reform will take effect in the entire Union today, July 1. The reform brings about changes to consumers, but also to businesses. The reform enables companies to register in the One Stop Shop VAT system in a single EU member state and to take care of their VAT declaration and payment obligations in a centralized manner. The One Stop Shop system can be used by companies that sell services or goods to consumers residing in the EU. In Finland, the VAT transactions can be done in the OmaVero online service.

When a company starts using the system, it can declare and pay taxes regarding consumer sales of goods and services through a single EU member state instead of declaring and paying VAT separately to each buyer’s country. If a company decides not to use the One Stop Shop system, it must still register as a VAT payer in all countries to which it sells consumer goods or services.

If an online shop’s consumer sales amount to a maximum of 10 000 euros for two consecutive years, registration in the One Stop Shop system is not required. When they so wish, companies with small turnovers can declare and pay VAT on consumer trade in their own countries.

More information available here.

If you are interested in registering a company in Finland and exporting goods or services to European consumers, please contact Companies House Finland.