EU Tax & Accounting skill

EU Tax & Accounting — 27 Member States

Orientation reference for corporate tax, VAT, payroll taxes, filing deadlines, cross-border rules, e-invoicing and compliance requirements across the European Union.

Not tax advice. Use this as a checklist/orientation layer only. Every rate, threshold and deadline below changes annually and varies by region, fiscal year, sector and entity type. Verify each figure against the official tax authority (linked per section) or a licensed local adviser before filing, registering for VAT, processing payroll, optimizing, or restructuring. Specific values are tagged with a last-verified date; where a 2026 number was not confidently confirmable, the entry points you at the official source instead of asserting a figure.

Verified baseline: figures reflect rules as of June 2026 unless a cell carries its own note. The fastest cross-country starting points: Tax Foundation EU tables (CIT/VAT/payroll, updated annually), PwC Worldwide Tax Summaries (per-country, authoritative detail), and the EU VAT rates database.

2026 e-invoicing snapshot (full table in §6): Germany B2B receive mandatory since Jan 2025, issue phased 2027-2028; Belgium B2B mandatory since Jan 2026; Poland KSeF live from Feb 2026 (large) / Apr 2026 (all VAT-registered), penalties from Jan 2027; France B2B receive Sep 2026, issue Sep 2026-2027 by size; Spain (Crea y Crece) royal decree adopted Mar 2026, phase-in ~2027-2028. VAT in the Digital Age (ViDA) rolls out platform-economy and digital-reporting rules from Jul 2028 (platforms, single registration) to Jul 2030 (intra-EU digital reporting), full alignment by 2035.

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1. Corporate Tax Rates — All 27 EU Countries

Last verified: Jun 2026. Standard headline national CIT rates; excludes most local surcharges, minimum taxes and sector regimes (noted where material). Cross-check each rate at PwC Worldwide Tax Summaries and Tax Foundation 2026 CIT table — both refresh in Jan.

Key Takeaways

• Lowest rates: Hungary (9%), Bulgaria (10%), Ireland (12.5%); Cyprus moved to 15% in 2026.
• Estonian (cash-flow) model: Estonia, Latvia; Poland and Lithuania offer optional/partial variants.
• Highest effective rates: Germany (~29.9%), Italy (~27.9%), France (25%), Luxembourg (~23.9%).
• SME / low brackets: Belgium (20% on first €100K), Netherlands (19% on first €200K), France (15% on first €42.5K), Portugal/Lithuania (15%/7%), Poland (9%), Slovakia (10%).
• Pillar Two QDMTT (15% floor) now bites for groups ≥ €750M regardless of headline rate — see §5; it neutralizes much of the low-rate advantage for large MNEs.

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2. VAT Regimes by Country

Standard and Reduced Rates

Last verified: Jun 2026. Source of truth: EU VAT rates database (TEDB) and each national tax authority. Reduced/super-reduced rates apply only to listed categories (food, books, medicine, passenger transport, etc.) — never assume a reduced rate without checking the national annex. Domestic registration thresholds are revised frequently; treat the figures below as orientation and confirm before relying on a small-business exemption.

Highest VAT: Hungary (27%), Denmark/Sweden/Croatia (25%) Lowest VAT: Luxembourg (17%), Malta (18%), Germany (19%), Cyprus/Romania (19%)

Cross-border SME VAT exemption (since 1 Jan 2025)

The EU "SME scheme" (Directive 2020/285) lets a small business established in one member state apply the domestic small-business VAT exemption in other member states without registering there, if EU-wide turnover stays ≤ €100,000 and the host country's national threshold is respected. Opt in via your home tax authority (you receive an "EX" VAT number). This is separate from OSS and changes the "do I need to register abroad?" calculus for very small sellers — see the VAT registration decision tree in §11. Verify eligibility at your national tax authority.

OSS — One-Stop Shop (since July 2021)

The OSS simplifies VAT compliance for cross-border B2C sales within the EU:

• Who: Any business selling goods/digital services to consumers in other EU countries
• Threshold: €10,000 combined cross-border B2C sales to all EU countries. Below this, charge your home country VAT rate. Above, charge destination country rate.
• How: Register for OSS in ONE EU country (your establishment). File a single quarterly return covering all EU B2C sales. Pay all VAT through one portal.
• Union OSS: For EU-established businesses selling B2C goods/services cross-border
• Non-Union OSS: For non-EU businesses supplying digital services to EU consumers
• Filing: Quarterly — by end of month following quarter (e.g., Q1 due April 30)

IOSS — Import One-Stop Shop

For goods imported into the EU with value ≤ €150 sold B2C:

• Collect VAT at point of sale (destination country rate)
• Report via single monthly IOSS return
• Goods clear customs VAT-free (expedited)
• Non-EU sellers must appoint an EU intermediary

Reverse Charge Mechanism (B2B)

Cross-border B2B services within the EU:

• Supplier issues invoice without VAT (0%)
• Invoice must state: "Reverse charge — Art. 196 Council Directive 2006/112/EC"
• Buyer self-assesses VAT on purchase (input and output = net zero if fully deductible)
• Both parties must have valid EU VAT numbers — verify via VIES (https://ec.europa.eu/taxation_customs/vies/)

Digital Services VAT (destination-based since 2015, via OSS since July 2021)

All B2C digital services (SaaS, streaming, e-books, online courses, cloud services) are taxed at the customer's country rate:

• Determine customer location via 2 non-contradictory pieces of evidence: IP address, billing address, bank country, SIM card country
• Use OSS to report and pay
• No de minimis for digital services supplied by non-EU businesses

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3. Payroll Tax & Social Contributions by Country

Employer Social Contribution Rates

Last verified: Jun 2026. Rates are approximate aggregates (pension + health + unemployment + accident + family, etc.) and vary by sector, risk class, salary band and collective agreement. Contribution ceilings are reset every year — the values below are 2026 where confirmed, otherwise flagged. Always confirm the current year's figures and rate split with the national social-security authority before running payroll.

Key Observations

• Highest employer burden: Slovakia (~35.2%), France (~40-45% incl. uncapped lines), Czech Republic / Estonia (~33.8%), Spain / Italy (~30%).
• Lowest employer burden: Denmark (~0-2%), Lithuania (~1.77% post-reform), Malta / Ireland (~10-11%), Hungary (~13%).
• Note: Low employer rates usually shift cost elsewhere — Denmark funds welfare via high income tax; Lithuania and Romania load contributions onto the employee.
• Caps move yearly and in opposite directions to rates — a "lower rate" country can still cost more on a high salary if its ceiling is uncapped (France) vs. capped (Germany). Use the §10 total-cost examples for a like-for-like view, but recompute with current-year ceilings.

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4. Key Filing Deadlines by Country

Corporate Tax Return Deadlines

Last verified: Jun 2026. Assumes a calendar fiscal year; a non-December year-end shifts every date and is extremely common (Ireland, Netherlands, UK-style groups). German/Austrian advisor extensions and Spanish/Italian advance-payment dates change with annual budgets. Always confirm the current-year deadline with the national authority before relying on it.

VAT Return Frequency

Last verified: Jun 2026. Frequency usually keys off turnover or prior-year VAT; new registrants are often forced monthly initially. Most countries also require recapitulative/EC Sales List (ESL) filings for intra-EU supplies and intra-EU acquisitions (Intrastat above statistical thresholds). Confirm at the national authority.

Annual Accounts Filing (commercial register / company gazette)

Last verified: Jun 2026. Most EU states require limited companies to publish annual financial statements with a commercial register or gazette; deadlines run from FY end or from AGM approval. Small/micro entities often get abridged filing and longer windows. Confirm the current rule and the correct register before filing.

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5. Cross-Border Specifics

Transfer Pricing

All EU countries follow the OECD Transfer Pricing Guidelines (arm's length principle, Art. 9 OECD Model Tax Convention):

• Documentation: Most countries require a Master File + Local File (OECD three-tiered approach)
• Country-by-Country Reporting (CbCR): Required for MNE groups with consolidated revenue ≥ €750M (EU Directive 2016/881, implementing BEPS Action 13)
• Safe harbors: Some countries offer safe harbors for low-value-adding services (typically 5% markup)
• Advance Pricing Agreements (APAs): Available in most EU jurisdictions — binding 3-5 year agreements with tax authorities

Withholding Taxes (Domestic Statutory Rates, before Treaties/EU Directives)

Last verified: Jun 2026. These are default domestic rates to non-residents; tax treaties and the Parent-Subsidiary / Interest & Royalties Directives (below) frequently reduce them to 0% within the EU. "0%" for interest is often conditional (e.g. arm's-length, not paid to a low-tax jurisdiction). Several states levy punitive WHT (often 35–75%) on payments to EU "non-cooperative jurisdiction" lists. Confirm per payment at the national authority.

Parent-Subsidiary Directive (2011/96/EU): Eliminates withholding tax on dividends between EU parent and subsidiary companies when:

• Parent holds ≥ 10% of subsidiary's capital (some countries: 25%)
• Holding period ≥ 1-2 years (country-dependent)
• Both companies are subject to corporate tax in their EU country
• Anti-abuse clause prevents use for arrangements not reflecting economic reality

Interest & Royalties Directive (2003/49/EC): Eliminates withholding tax on interest and royalty payments between associated EU companies (≥ 25% direct holding).

ATAD I & II — Anti-Tax Avoidance Directives

ATAD I (Directive 2016/1164, effective 2019):

DAC6 & DAC7 — Mandatory Disclosure

DAC6 (Directive 2018/822): Mandatory disclosure of cross-border tax arrangements:

• Who reports: Intermediaries (tax advisors, lawyers, banks) or taxpayers if no intermediary
• What: Cross-border arrangements meeting specific "hallmarks" (generic or specific, with or without main benefit test)
• When: Within 30 days of arrangement being made available/ready for implementation
• Penalties: Vary by country. Germany: up to €25,000. France: up to €10,000 per arrangement.

DAC7 (Directive 2021/514): Platform reporting (effective Jan 1, 2023):

• Digital platforms must report sellers' income to tax authorities
• Covers: property rental, personal services, sale of goods, vehicle rental
• Automatic exchange of information between EU tax authorities

Pillar Two — Global Minimum Tax (15%)

EU implementation via Directive 2022/2523, effective from December 31, 2023:

• Scope: MNE groups with consolidated revenue ≥ €750M (in at least 2 of the last 4 fiscal years)
• Rate: 15% minimum effective tax rate per jurisdiction
• IIR (Income Inclusion Rule): Parent jurisdiction applies top-up tax on low-taxed subsidiaries
• UTPR (Undertaxed Profits Rule): Backstop if IIR doesn't apply; effective from 2025
• QDMTT (Qualified Domestic Minimum Top-Up Tax): Countries can collect the top-up tax themselves

Implementation status (as of Jun 2026):

• IIR: in force across all 27 EU member states (mandatory under the directive; transposed by all, after late-mover infringement pressure).
• UTPR: effective for fiscal years starting on/after Dec 31, 2024 (i.e. live for 2025 onward).
• QDMTT: adopted by most member states (incl. Ireland, Netherlands, Luxembourg, Belgium, Germany, France, Czechia, Hungary, etc.) to collect the top-up domestically rather than cede it abroad.
• Watch item: the OECD/US "side-by-side" arrangement announced in 2025 (potentially exempting US-parented groups from UTPR/IIR in exchange for the US GILTI regime) was still being worked through in 2026 and could change UTPR exposure for US groups. Verify current status at OECD BEPS Pillar Two before advising in-scope groups.

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6. Invoicing Requirements

Mandatory E-Invoicing by Country

Last verified: Jun 2026. Dates and turnover thresholds in this area have slipped repeatedly — treat every date as provisional and confirm at the national authority before building integrations.

ViDA (VAT in the Digital Age, Directive (EU) 2025/516). Adopted 2025; phases roll out from Jul 2028 to 2035. Key pillars: (1) digital reporting + mandatory structured e-invoicing for intra-EU B2B from 1 Jul 2030 (EN 16931; existing domestic reporting systems must align by 1 Jan 2035), removing the need for prior derogations; (2) platform economy: deemed-supplier VAT rules for short-term accommodation and passenger transport platforms from 1 Jul 2028 (member states may defer to 1 Jan 2030); (3) single VAT registration: wider OSS plus mandatory reverse charge from 1 Jul 2028, avoiding multiple registrations. Member states may mandate domestic e-invoicing without EU derogation already. Track at EU ViDA.

Required Invoice Fields — EU VAT Directive Art. 226

Every VAT invoice must contain:

1. Date of issue
2. Sequential invoice number (unique)
3. VAT identification number of the supplier
4. VAT identification number of the customer (for reverse charge or intra-community supplies)
5. Full name and address of supplier and customer
6. Quantity and nature of goods / extent and nature of services
7. Date of supply (if different from invoice date)
8. Taxable amount per rate/exemption
9. VAT rate applied
10. VAT amount payable (in the currency of the member state)
11. In case of exemption or reverse charge: reference to the relevant provision (e.g., "Exempt — Art. 138 Directive 2006/112/EC" for intra-community supply)

Credit Notes

• Must reference the original invoice number and date
• Must include the reason for the credit
• Reduces the taxable amount and VAT reported in the period the credit note is issued
• Some countries require sequential numbering separate from invoices (e.g., France: "Avoir" series)

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7. Holding Company & Structure Optimization

Popular Holding Jurisdictions

Substance Requirements (Post-ATAD & EU Anti-Abuse)

Since ATAD and the EU Code of Conduct Group crackdown, substance is critical:

• Board of directors: Majority should reside in the holding jurisdiction
• Decision-making: Key management decisions demonstrably made locally
• Employees: Qualified staff (not just a registered agent)
• Office space: Real premises (not a virtual office)
• Bank accounts: Active local bank accounts with genuine transactions
• Operational expenditure: Meaningful local costs proportionate to activities
• Risk: Without substance, benefits can be denied under GAAR, or entity reclassified as a conduit

Patent Box / IP Box Regimes

Last verified: Jun 2026. All EU IP boxes are nexus-compliant (OECD BEPS Action 5) — the benefit is proportional to self-performed R&D. Effective rates move when the underlying CIT changes (e.g. Luxembourg's CIT cut to 16% slightly lowers its IP-box effective rate, and Cyprus's 2026 jump to 15% CIT changes the base) — re-verify before quoting.

Nexus Approach (OECD BEPS Action 5): IP-box benefits are limited proportionally to the R&D expenditure incurred by the taxpayer itself (vs. acquired IP). Formula: (qualifying expenditure / total expenditure) × 130% uplift (capped at 100%) × qualifying income. Robust DEMPE and substance analysis is expected — see §7 substance requirements.

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8. Startup & SME Incentives by Country

Last verified: Jun 2026. R&D/startup incentives are among the fastest-moving rules — rates, caps and eligibility windows change with each annual finance law. Confirm current parameters with the national authority/agency before modeling them.

France

• JEI (Jeune Entreprise Innovante): The corporate-tax exemption was ABOLISHED for companies created on/after Jan 1, 2024 (older qualifying companies could retain it). The surviving benefit is the employer social-contribution exemption on R&D staff plus local-tax exemptions. The qualifying R&D-expenditure threshold rose from 15% to 20% of charges from 2026. Other conditions: < 8 years old, < 250 employees, < €50M turnover. New 2026 category "JEII" (Jeune Entreprise d'Innovation à Impact) — companies with 5–20% R&D meeting social/solidarity-economy criteria — introduced by the 2026 Finance Law. Verify at entreprendre.service-public.fr and BOFiP.
• CIR (Crédit d'Impôt Recherche): R&D tax credit (historically 30% up to €100M, 5% above). The headline rate and eligible-cost base have been trimmed in recent budgets — confirm the current-year rate at impots.gouv.fr. Refundable for SMEs.
• CII (Crédit d'Impôt Innovation): Innovation tax credit for SMEs on design/prototyping/pilot expenditure (rate ~20–30%, capped base ~€400K — verify current rate).
• IP regime: 10% effective rate on qualifying IP income (see §7).

Netherlands

• Innovation Box: 9% effective rate on profits from qualifying innovations (patents, WBSO R&D).
• WBSO (Wet Bevordering Speur- en Ontwikkelingswerk): R&D wage tax credit. 32% of first €350K in R&D wage costs, 16% above. Startups get 40% on first tranche.
• Startup visa: 1-year residence permit for non-EU entrepreneurs with innovative business plan.
• SEED Capital scheme: Government co-investment in VC funds backing early-stage tech companies.

Ireland

• R&D Tax Credit: 25% of qualifying R&D expenditure (from 2024, first €50K at 30%, then 25%). Refundable over 3 years if no tax liability.
• KEEP (Key Employee Engagement Programme): EMI-like share option scheme. No income tax on exercise (only CGT at 33% on disposal). Company must be trading < 15 years, < €50M assets, < 250 employees.
• KDB (Knowledge Development Box): 10% effective rate on qualifying IP profits.
• Employment & Investment Incentive (EII): Tax relief for investors in qualifying SMEs (40% income tax relief on investments up to €500K).

Germany

• Forschungszulage (R&D Allowance): 25% of qualifying R&D personnel/subcontracting costs (35% for SMEs from 2026). Max assessment base raised to €12M/year from 2026 (was €10M) → max credit up to €3M (large) / €4.2M (SME). From 2026 a 20% flat-rate overhead can also be claimed on eligible costs. Applies from the first euro; refundable against tax. Verify at BMF.
• INVEST Grant: 20% acquisition grant for angel investors buying shares in qualifying startups; additional exit grant on capital gains. Caps per investor/year apply — verify current figures at BAFA.
• EXIST: Federal startup grants for university spin-offs (living + material costs for ~12 months, extensions possible).

Spain

• R&D Deduction: 25% of R&D expenditure; 42% on excess over prior 2-year average. Additional 17% for qualified R&D personnel costs. Innovation: 12% deduction.
• Patent Box: 60% reduction on qualifying IP income (effective rate ~10%).
• Startup Law (Ley de Startups, 2023): 15% CIT rate for first 4 years for qualifying startups. Stock option exemption up to €50K/year. Simplified VAT cash accounting.

Luxembourg

• IP regime: 80% exemption on net income from qualifying IP (effective ~5.2%).
• Investment tax credits: 8% on first €150K of qualifying investments, 2% above. Additional credits for environmental investments.
• Young Innovative Company (JEI-like): Under development; some R&D grant programs available through Luxinnovation.

Belgium

• Innovation Income Deduction: 85% deduction on qualifying IP income (effective ~3.75%).
• Partial salary withholding tax exemption: 80% exemption on wage withholding tax for qualifying researchers. Employer retains the exempted amount.
• Tax shelter for startups: personal income-tax reduction for investments in qualifying micro/small startups (verify current rates and the per-investor annual cap).

Other member states (orientation — verify current parameters)

For any of the above, confirm the current rate, cap, eligibility and de minimis/state-aid limits with the national tax authority or innovation agency before relying on the figure.

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9. Accounting Standards

IFRS vs Local GAAP

"IFRS mandatory" below = IFRS as adopted by the EU, required for the consolidated accounts of EU-listed companies (EU Regulation 1606/2002). For statutory (individual-entity) accounts, most member states require or prefer local GAAP; the right-hand columns show the unlisted/SME default and whether IFRS is permitted for statutory accounts.

Key rule: IFRS-as-adopted-by-EU is mandatory for consolidated accounts of EU-listed companies. For statutory accounts, France/Germany/Spain/Austria notably do not permit IFRS; Cyprus uses IFRS broadly. EU sustainability reporting (CSRD/ESRS) layers on top for larger entities — scope and timing were being re-phased ("Omnibus") in 2025–2026; verify applicability at EFRAG.

Country-Specific Charts of Accounts

Audit Requirements (Simplified)

Statutory audit is generally required when a company exceeds 2 of 3 size criteria. The EU raised the monetary thresholds by ~25% via Delegated Directive (EU) 2023/2775 (applicable to financial years from Jan 1, 2024, with optional earlier adoption), to offset inflation. Post-increase "medium-sized / audit" thresholds (member states transpose with variation, and may set audit triggers below these):

• Balance sheet total: ≈ €5.0M (small-company ceiling) / ≈ €25M (medium ceiling)
• Net turnover: ≈ €10.0M (small ceiling) / ≈ €50M (medium ceiling)
• Average employees: 50 (small) / 250 (medium)

A company exceeding the small-company ceilings on 2 of 3 criteria typically loses the audit/filing exemptions. Several countries set their own, often lower, mandatory-audit triggers (e.g. some require audit well below the EU small-company ceiling, or based on entity type). Micro-entities below all micro-ceilings get the lightest regime. Always confirm the transposed national thresholds and any entity-type rule with the local register/regulator before assuming an exemption.

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10. Quick Decision Matrix

"Where should I incorporate in the EU?" — read this first

Do NOT pick a jurisdiction off a headline-rate table. Choosing an entity location is high-stakes structuring. A low statutory rate is routinely neutralized — or made worse — by permanent establishment (PE), place-of-effective-management, CFC, Pillar Two (15% floor for groups ≥ €750M), substance/anti-abuse (GAAR, EU Code of Conduct), transfer pricing, exit tax, investor/treaty constraints, VAT registration obligations where customers are, and where you actually employ people. Tax authorities tax where value is created and managed, not where you registered. A wrong structure can create double taxation, denied treaty benefits, back-tax, penalties and personal-liability exposure. This is a workflow to scope a conversation with a qualified cross-border tax adviser — not a recommendation.

Decision workflow — answer these before any jurisdiction is even shortlisted:

1. Where is management/board actually located? (Drives place-of-effective-management → corporate tax residence, regardless of registration.)
2. Where are the employees / the real activity? (Creates PE and payroll/social-security obligations there; "letterbox" companies are attacked.)
3. Where are the customers? (Drives VAT registration/OSS and, for digital, destination VAT — see §2.)
4. Who owns the IP, and where was the R&D done? (Nexus rules cap IP-box benefits to self-performed R&D; misalignment triggers TP adjustments.)
5. Who are the investors / will you raise VC or list? (VCs often require Delaware/known holdco forms; treaty access depends on shareholder residence; some reliefs require individual ownership.)
6. Can you build real substance (local directors, staff, premises, genuine costs) proportionate to the benefit claimed? If not, the benefit is fragile under GAAR.
7. Is the group ≥ €750M revenue (Pillar Two) or are there CFC low-tax subsidiaries? If yes, low-rate jurisdictions deliver little net benefit.
8. PE / exit-tax exposure from moving an existing business or assets cross-border?
9. Have you priced full cost of ownership — payroll burden (§3), filing/audit/e-invoicing compliance (§4, §6, §9), and professional fees — not just the CIT rate?
10. Get local counsel + a cross-border tax adviser to validate before incorporating, and re-confirm after any annual finance-law change.

Factor → jurisdictions commonly evaluated (then validated against the workflow, never assumed):

Total Employer Cost Example (€100K gross salary)

Rough order-of-magnitude only, illustrating relative burden — NOT a quote. A €100K salary sits above the contribution ceiling in several countries (Germany, France-capped lines, Luxembourg, Netherlands, Spain), so employer cost does not scale linearly: low-salary roles look very different. Recompute with the current-year ceilings in §3, the applicable collective agreement, accident-insurance risk class, and family/marital status. Employee-net also depends on local income-tax bands and personal circumstances.

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11. Agent Action Toolkit (checklists, decision trees, data templates)

Use these to produce concrete, defensible outputs instead of one-off opinions. Every output should end with "verify with the official authority / a local adviser before acting."

11.1 Country verification checklist (run before quoting ANY figure)

For each country in scope, confirm the current-year value and source:

• Corporate tax: standard rate, SME/reduced bracket, local surcharges/min tax, fiscal-year rule → national authority + PwC summary
• VAT: standard + applicable reduced rate for the specific goods/services, domestic registration threshold, return frequency, ESL/Intrastat → TEDB + national authority
• Payroll: employer + employee rates, this year's contribution ceiling(s), accident-risk class, collective-agreement add-ons → social-security authority
• Filing: CIT deadline (with the entity's actual FY end), VAT periods, annual-accounts deadline + register, e-invoicing obligation date for the entity's size
• Cross-border: WHT on the specific payment, treaty + directive relief conditions, Pillar Two / CFC / PE exposure, DAC6 hallmarks
• Record the source URL and the date checked next to every number you report.

11.2 VAT registration decision tree

START: a taxable supply is being made.
1. Is the customer in the SAME country as your establishment?
   └─ Yes → register/charge per domestic rules (mind the domestic small-business threshold; EU SME scheme may exempt up to €100K EU-wide).
2. Cross-border to ANOTHER EU country?
   ├─ B2B services (general rule, Art. 44)? → REVERSE CHARGE: invoice 0% VAT, customer self-accounts. Verify customer's VAT no. on VIES; quote "Reverse charge — Art. 196 Directive 2006/112/EC".
   ├─ B2B goods, dispatched intra-EU to a VAT-registered buyer? → intra-Community supply, 0%-rated if conditions + VIES valid; buyer accounts for acquisition VAT. File EC Sales List.
   ├─ B2C goods or B2C digital/telecom/broadcast services?
   │    ├─ Total cross-border B2C < €10,000/yr (all EU combined)? → charge HOME-country VAT.
   │    └─ ≥ €10,000? → charge DESTINATION-country VAT → register for OSS (one return) instead of 27 local registrations.
   └─ B2C non-digital services? → place-of-supply rules vary by service (land, events, transport, etc.) — check Arts. 44–59 before charging.
3. Importing goods ≤ €150 to EU consumers from outside the EU? → use IOSS (collect destination VAT at checkout, monthly return; non-EU sellers need an EU intermediary).
4. Selling via a marketplace/platform? → the platform may be "deemed supplier" (and increasingly so under ViDA) — confirm who is liable.
ALWAYS: validate counterpart VAT numbers on VIES; keep evidence of customer location (2 non-contradictory items for digital).

11.3 OSS / IOSS workflow

1. Confirm threshold: cross-border B2C goods + digital services > €10,000/yr combined → destination VAT applies.
2. Choose scheme: EU-established → Union OSS; non-EU selling digital to EU consumers → Non-Union OSS; imports ≤ €150 → IOSS.
3. Register in ONE member state (your establishment, or for IOSS via an intermediary) through its OSS portal; obtain the OSS/IOSS ID.
4. Apply destination rates per customer country (use the TEDB rates; keep them updated).
5. File: OSS quarterly (by end of month after quarter-end); IOSS monthly. Pay the whole EU liability via the one portal.
6. Keep records 10 years; reconcile OSS sales to your VAT return so you don't double-count domestic vs. OSS supplies.
7. Don't put domestic sales in OSS, and don't reclaim input VAT through OSS (reclaim via normal return or 8th/13th Directive refund).

11.4 Invoice validation checklist (EU VAT Directive Art. 226)

• Sequential unique invoice number; date of issue; date of supply (if different)
• Supplier full name, address and VAT number
• Customer name/address; customer VAT number if reverse charge or intra-EU supply
• Per line: quantity/nature of goods or extent/nature of services
• Taxable amount per rate; VAT rate(s); VAT amount in the member state's currency
• Correct legend where no VAT is charged, e.g. "Reverse charge — Art. 196 Directive 2006/112/EC" (B2B services) or "Exempt — Art. 138 Directive 2006/112/EC" (intra-Community supply of goods)
• If under a margin/cash scheme, the required scheme note
• Structured/e-invoice format where mandated (Italy SDI, Poland KSeF, Belgium Peppol, Germany/France phase-in) — a PDF alone may be non-compliant
• Credit notes reference the original invoice number + date and the reason

11.5 Payroll data needed to onboard an employee, by jurisdiction

Minimum data set to compute gross-to-net and employer cost (collect per country):

• Entity's employer registration / social-security number in that country (and a local payroll registration — required before the first payday)
• Employee tax ID, social-security number, residency/tax-class, family situation
• Applicable collective bargaining agreement (drives minimum wage, 13th/14th month, allowances)
• Gross salary, variable pay, benefits-in-kind, pension scheme
• Current-year contribution rates + ceiling (from §3, re-verified), accident-insurance risk class
• Withholding/PAYE method (cumulative vs. non-cumulative), local payroll-filing calendar
• Mandatory insurances (e.g. accident, occupational pension) and any regional levy
• Posted-worker / A1 certificate if the person works cross-border (avoid double social-security charging)

11.6 Questions to ask a local accountant / tax adviser

1. What is the exact current-year CIT rate, SME bracket and any minimum/turnover tax for my entity type?
2. Do my activities/people here create a permanent establishment or change my tax residence?
3. What are all my registration obligations (CIT, VAT, payroll, local taxes) and their deadlines for my fiscal year?
4. Which VAT rate applies to my specific products/services, and do I need OSS/IOSS or local registration?
5. What e-invoicing / digital-reporting obligation applies to me and from when?
6. What's the fully-loaded employer cost for a hire at salary X, including ceilings, risk class and the collective agreement?
7. Do WHT, the Parent-Subsidiary / Interest & Royalties Directives, or a treaty apply to my cross-border flows, and what conditions/forms are required?
8. Am I in scope for Pillar Two, CFC, DAC6/DAC7/DAC8 or transfer-pricing documentation?
9. What substance do I need to defend any holding/IP benefit, and what's the GAAR/anti-abuse risk?
10. What statutory audit / annual-accounts filing thresholds and formats apply, and when?

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Disclaimer

Tax and accounting rules change at least annually and vary by region, fiscal year, sector and entity type. This reference reflects rules as of June 2026 and is for orientation only — it is NOT tax, legal or accounting advice. Before you file a return, register for VAT, run payroll, claim an incentive, restructure, or choose where to incorporate, verify every figure against the official tax authority cited in the relevant section (or the EU databases linked at the top) and consult a qualified, licensed adviser in the relevant jurisdiction. Country-specific nuances, treaty provisions, anti-abuse rules and recent legislative changes may materially change the outcome. Where a value above could not be confidently confirmed for 2026 it is flagged "verify at …"; do not treat any number here as authoritative.

Key legislative references:

• Council Directive 2006/112/EC (VAT Directive)
• Council Directive (EU) 2020/285 (cross-border SME VAT exemption, from 2025)
• Council Directive (EU) 2025/516 (ViDA — VAT in the Digital Age)
• Council Directive 2011/96/EU (Parent-Subsidiary Directive)
• Council Directive 2003/49/EC (Interest & Royalties Directive)
• Council Directive 2016/1164 (ATAD I) + 2017/952 (ATAD II)
• Council Directive (EU) 2022/2523 (Pillar Two / Global Minimum Tax)
• Council Directive 2018/822 (DAC6) + 2021/514 (DAC7) + (EU) 2023/2226 (DAC8, crypto-asset reporting, from 2026)
• EU Regulation 1606/2002 (IFRS adoption for listed companies)
• Delegated Directive (EU) 2023/2775 (raised accounting size thresholds, from FY2024)

Authoritative cross-country sources to re-verify against: PwC Worldwide Tax Summaries · Tax Foundation EU data · EU VAT rates / TEDB · VIES VAT number check · EU taxation & customs portal · OECD BEPS / Pillar Two.