A company that is not registered for VAT does not need to add VAT to invoices, make VAT returns, or pay VAT remittances
Starting from January 1, 2025, we will no longer automatically register private traders who have established their business through the UKKO Entrepreneur service into the VAT register. This is due to the removal of the VAT lower threshold relief and the increase in the threshold for minimal business activity from 15,000 euros to 20,000 euros.
If your annual turnover approaches the 20,000 euro threshold, we will contact you to ensure your company is registered for VAT if necessary through MyTax. In this case, VAT liability begins from that moment and does not need to be paid retroactively.
As a private trader, you are liable for VAT if your company's turnover exceeds 20,000 euros
In the UKKO Entrepreneur service, our system automatically forwards VAT from your sales and purchase invoices to your VAT periods and VAT-exempt income statement.
We submit VAT returns to the tax authority at the end of your VAT return period (which can be 12, 3, or 1 month). Our system sends an automatic email notifying you of the VAT payable or refundable, which you must remit to the tax administration if necessary. The email includes instructions for paying the taxes.
To ensure smooth submission of your VAT returns:
- Make sure all receipts, sales, receipts, etc., from the previous month are uploaded to the service by the 15th of the following month
- We will review all receipts you add to our service and submit the VAT return on your behalf according to your VAT return period
- You will receive information about VAT payable or receivable in your email. Pay the tax according to the instructions found in the email, if there is tax payable
When should the VAT return be submitted and paid?
If your VAT period is monthly, VAT must be declared and paid by the 12th day of the second month following the tax period. For example, the declaration of VAT for January must be received by March 12th.
If your VAT period is a calendar quarter, VAT must be declared and paid by the 12th day of the second month following the calendar quarter. For example, the details for the first calendar quarter must be declared and tax paid by May 12th.
The VAT tax period can also be a calendar year. In this case, the due date is not the 12th day of the month, but VAT must be declared and paid by the end of February of the following year.