VAT FAQ

Resos is a Danish company, so how VAT shows up on your invoice depends on where your business is registered. There are three cases, and your situation falls into exactly one of them.

The three cases

1. Danish businesses

If your business is registered in Denmark, your Resos invoice includes 25% Danish VAT (moms). This is the standard rate set by the Danish tax authority (SKAT) and applies to every Danish customer regardless of plan.

2. EU businesses outside Denmark, with a valid VAT number

If your business is in another EU country and you have a valid VAT number registered for intra-community trade, your Resos invoice carries no VAT. You account for the VAT yourself in your own country under the EU’s reverse-charge mechanism. We report the sale to the Danish authorities as “EU sale without VAT” each month.

This is the default treatment for most of our EU customers outside Denmark - if you fall into this group, you should not see any VAT line on your invoice once your VAT number is verified.

3. Non-EU businesses (UK, US, Norway, Switzerland, Australia, and others)

If your business is outside the EU, your Resos invoice is VAT-exempt - no VAT line at all. UK customers fall into this category as well, since the UK left the EU. You handle whatever tax obligations apply in your own country.

How to add your VAT number

If you’re in case 2 (EU outside Denmark, valid VAT number), you need to add the number to Resos so we can verify it and apply reverse charge:

Go to Menu → Settings → General → Name & Contact, and enter your VAT number under the VAT section.

If you don’t have a valid EU VAT number, tick the box “We do not have a valid EU VAT number” so the system stops notifying you about it.

Why is my VAT number validation saying invalid?

The most common reason is that your VAT number isn’t registered for intra-community trade. A VAT number that works fine domestically doesn’t automatically work for cross-border EU sales - it has to be registered in the VIES (VAT Information Exchange System) before Resos can verify it.

In most EU countries, a business is automatically registered for intra-community trade when the VAT number is first issued. In a few - notably Spain, Italy, and Portugal - you have to register separately.

If Resos can’t verify your VAT number, we treat the sale as case 1 by default and charge 25% Danish VAT until the number can be verified, since the reverse-charge mechanism requires a valid number.

How to fix an invalid VAT number

Contact your local tax or VAT office and ask them to register your VAT number for intra-community trade. Once it shows up in VIES, Resos will verify it on the next invoice and stop charging Danish VAT.

You can check whether your number is already registered using this lookup: https://www.valdit.com/en-gb.

Why and how we check your VAT number in VIES

VIES is the EU’s official VAT Information Exchange System. Businesses registered for intra-community trade are listed there, and we cross-check every VAT number we receive against it. According to EU law, we’re required to verify the number before issuing invoices to a business in another EU country.

If you have further questions about VAT and Resos, please reach out to our support team at hi@resos.com. We’re happy to walk through your specific situation - especially if you’re not sure which of the three cases applies to you.