VAT declarations abroad in 30 European countries

A VAT return is an official document submitted to the tax authority (in Poland or abroad) in which a business reports the value of sales, the amount of tax due, and the amount of input tax (from purchases). It is used to calculate the amount of tax payable or any overpayment to be refunded. In the European Union, returns can be filed monthly, quarterly, or annually, depending on the regulations of the given country.

A VAT zero return is a return in which a business does not report any taxable sales or purchases during a given period, but is still registered as an active VAT payer. Despite the lack of turnover, most countries require such a return ("nil return") to be filed on time to avoid penalties for non-compliance with tax obligations.

The process should begin with verifying your registration requirements. Check whether you've exceeded sales limits (e.g., under the VAT OSS – €10,000 for the entire EU) or whether the nature of your business (e.g., storing goods in another country) requires local VAT registration. The next step is to obtain a foreign VAT number and establish local deadlines for filing tax returns.

Every company that has an active VAT number abroad is obliged to submit declarations within the statutory deadlines (different in each country).

To checkif an EU VAT number is active, you can use the EU VIES database. Remember to always verify whether your business partner's VAT number is active, as this determines how they issue VAT invoices.

No, these are two different documents used to report different types of transactions. The key differences are:

The VAT-OSS (One Stop Shop) declaration is a simplified, quarterly declaration (in Poland, the VIU-DO form) used exclusively for settling sales of goods and services to private individuals (B2C) in other European Union countries. Thanks to this declaration, as long as you only ship goods from your country of residence, you don't have to register for VAT in each country separately. So, instead of sending 20 declarations to 20 countries, you file one in Poland.

A VAT return (e.g., JPK_V7 in Poland or local declarations abroad) is used to settle domestic sales, purchases (VAT deduction), and B2B (business-to-business) transactions, imports, exports, non-transactional deliveries, or EU acquisitions. If you are registered for VAT in another country (e.g., Germany because you have a warehouse there), you submit a local VAT return.

The basis for settling VAT abroad is the VAT Report, which records your transactions in a given country.

• B2B invoices for sales and purchases
• Proof of delivery of goods (e.g. CMR waybills) – essential at a 0% rate
• Import documents
• Copies of orders/contracts with contractors

Yes,this is especially beneficial if, for example, you only store goods in one country but sell to many other foreign countries. You can then use VAT OSS and register for VAT only in the countries to which you ship goods abroad. This will avoid additional reporting obligations and save you significant money.

VAT payment deadlines vary for each country. They typically coincide with the deadline for filing a tax return (e.g., by the 20th or 25th of the month following the settlement period). Please note that foreign transfers may take longer to process, and the tax is considered paid when the funds are credited to the tax office's account.

Criminal penalties depend on local laws and may include:

• Administrative or fiscal fines.
• Late payment interest charged on the arrears amount

VAT rates change annually. Current VAT rates (identical to European Union data) can be found on our blog. Check out: Current EU VAT Rates 2026

Additionally, remember that B2B (business-to-business) transactions within the EU often use a 0% rate (ICS) provided the counterparty has an EU VAT number. For B2C (consumer-to-consumer) online sales, once the limit of EUR 10,000 is exceeded, the VAT rate appropriate for the consumer's country, unless you are using the VAT OSS procedure.

The frequency of reporting depends on local law and turnover. Monthly or quarterly reporting. Some countries (e.g., Germany and Luxembourg) also require a consolidated annual return that summarizes the entire tax year.

VAT refunds abroad (e.g. for fuel, hotels, trade fairs) can be obtained in two ways:

1. By declaring excess input tax on your foreign VAT return (if you're registered in that country). In most countries, the refund is automatically transferred to your taxpayer account. However, in some countries, you must submit a separate VAT refund application. This option is only available if you have a VAT number in the country where you made your purchases.
2. Through the VAT-REF procedure (submitted via the e-Deklaracje system to the Polish tax office for EU expenditures). This option is only available if you do not have a VAT number in the country where you made your purchases.

The moment a tax liability arises depends on the type of transaction. Typically, it's the moment a service is performed or goods are delivered. In many countries, issuing an invoice before delivery also triggers a tax liability. Always check local regulations, which often differ from Polish accounting principles.

Foreign cost invoices are converted into domestic currency at the average NBP exchange rate from the last business day preceding the tax liability date (or invoice issuance date). They are typically reported on the VAT return as import of services or intra-Community acquisition of goods (ICAO), which, provided Quick Fixes rules are followed, is tax-neutral (input VAT = output VAT).

Intra-Community transactions (ICS and ITC) are based on the reverse charge mechanism seller The.issues an invoice without VAT (0% rate or "NP"), and the buyer is obliged to charge and deduct VAT at the applicable rate in their country . A necessary condition is that both parties have an active VAT-EU number in the VIES system and provide proof of delivery.