If you run a webshop, selling internationally puts you up against complex btw (Dutch VAT) rules. Supplying private customers in other EU countries is where it gets awkward. You may assume that e-commerce platforms such as Odoo, WooCommerce or Shopify already handle this for you. They do not always get it right, and errors in your btw administration have real consequences. Take one example: it is the delivery address, not the billing address, that determines which btw rate applies. That is a detail many business owners miss.
Btw rules when you sell to private customers (B2C)
If you sell to private customers inside the EU and your total turnover stays below €10,000, you may keep applying the Dutch btw rate. That part is straightforward. Above that threshold it changes: you have to apply the local btw rate country by country and file a return in each of those countries. That becomes an administrative burden quickly. For a business with a large customer base spread across several EU countries, it is a serious concern.
There is a way out: the OSS-aangifte, the Dutch One Stop Shop return. Under this scheme you declare the btw for every EU country in a single return. One caveat: your e-commerce system has to be set up properly to produce that return without errors. Get proper advice, so you avoid trouble with the Belastingdienst, the Dutch tax administration.
Selling to businesses (B2B)
Selling to EU businesses with a valid btw-nummer looks simpler: you apply 0% btw. There is still a catch. Your customer's btw-nummer has to be exactly right, or the Belastingdienst will come back to you. You also have to state your customer's btw-nummer clearly on the invoice, along with the fact that the btw has been shifted to them — for example with the wording "BTW verlegd" or "VAT reverse charge". It sounds simple, and small errors here have large consequences.
Btw reporting: where Odoo falls short
Many business owners run Odoo alongside another e-commerce platform such as WooCommerce or Shopify. In theory those connections take a lot of work off your hands; in practice, btw reporting is where problems come up regularly. The reason is that Odoo often records only the billing address, while it is the delivery address that determines the correct btw rate. The result is incorrect btw reporting, which leads to errors in your return and possible penalties.
Odoo does provide an OSS report, but that does not rule out every problem. If you want certainty, your administration has to be set up the right way.
The solution: fast, accurate btw reporting
At doo.FINANCE we have a solution for this problem. Together with our partner we built a tool that compares data from e-commerce platforms such as Magento, Shopify, WooCommerce, Amazon, Bol.com and Odoo against your bookkeeping in Odoo. The tool calculates the OSS-aangifte, the ICP-opgaven — the Dutch declarations of intra-Community supplies — and the local btw returns for every EU country you operate in, automatically. That tells you your btw reporting adds up, and it keeps you clear of unpleasant surprises.
If you want your btw returns filed correctly and without the last-minute scramble, get in touch with doo.FINANCE and see how our tool helps you prevent errors and streamline your btw administration.
Conclusion
Selling internationally can grow your business, and it brings real btw complexity with it. Getting your btw administration set up properly is essential, especially once you sell to customers in several EU countries. doo.FINANCE is here to help you file fast, error-free btw and OSS returns.
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Contact us and discover how we can help you.