EU VAT
VAT invoicing and accounting for the EU
Pick the European Union when you set up and Kanakku configures VAT for you: the euro, a January financial year and VAT accounts, with the member state's standard rate applied to your sales.
What you get when you pick European Union
CurrencyEuro (EUR)
Financial yearJanuary to December
TaxVAT
RatesThe supplier member state's standard rate, plus 0% for reverse-charge and exempt lines
Your chart of accounts, tax accounts and default tax rates are created for you at the same time, so you can start invoicing straight away.
How the tax is worked out
- The standard VAT rate of the supplier's EU member state is applied.
- Intra-community B2B sales are charged at 0% with a reverse-charge note on the invoice.
- One-stop-shop (OSS) treatment is available as an option and is off by default, so the origin rate applies unless you turn it on.
Reports from your books
- EU VAT summary
- Tax summary
- Profit and loss, balance sheet and trial balance
Figures come from the tax accounts in your ledger, so they reconcile to your trial balance.
Good to know
- Your country, currency, tax regime and financial-year start are fixed once you record your first transaction, so choose them carefully during setup.
- Kanakku prepares the figures for your return. Check your filing obligations and rates with your accountant; this page is not tax advice.
Frequently asked questions
Does Kanakku handle the reverse charge?
Yes. Intra-community B2B sales are charged at 0% with a reverse-charge note.
Is OSS supported?
Yes, as an option. It is off by default, so the member state of the supplier applies unless you turn OSS on.
Set up EU VAT in a minute
Start on the Free plan, choose European Union, and Kanakku configures the rest.