We described what the term opt-out is and why it is important here. As a short summary and reminder, opt-out is an unofficial term used by hellotax to describe the switch from paying VAT in the departure country to paying VAT in the destination country.

After you have received all the VAT IDs, you will be able to request to ‘opt-out’. Please schedule a meeting with your Account Manager so we can advise you where opting out would be appropriate and beneficial for you. 


This means that we will help you to opt-out from a certain country before reaching the annual threshold limit for distance selling and opt-in to pay VAT in the destination country/countries. Your account manager and our local accountants will create an opt-out matrix to reduce your VAT liability in every possible country and also to optimize your compliance.


During the opt-out process, you will need to fill in some forms, where you will notify the country about where the goods are sold from and that you will stop paying VAT there. After you have filled in the form, simply send it to your Account Manager.


Opting out from Poland does have some special requirements:

·         Fill in the VAT 22 form and send it to your Account Manager

·         There is a 30 days block period where you will still need to pay VAT in Poland

·         Plan ahead and set the date on the VAT 22 form 45 days in the future (30 days block period + 15 days shipping and processing time for Polish Tax Authorities) 

·         Send a proof (letter or e-mail) that you informed your Tax Authorities about opting out in Poland* to the Polish Tax Authorities.


*Polish Tax Authorities require a document or at least an e-mail proof that you informed your Tax Authorities about opting out in Poland. Tax Authorities is the tax office where your business is headquartered.


If you are wondering why the registration and opting-out cannot be done in parallel, there are a few reasons we will explain below. 


NOTE: You can opt-out only after registration


Reason 1: During the opt-out process, the involved countries (tax offices) will talk and collaborate with each other, and they will see if a requester has no VAT ID in one of the countries.

This will lead to additional questions and you will need to provide the VAT ID of the destination country at the moment that you apply for opting out. Being registered in the destination country is a mandatory requirement.


Reason 2: This is a technical requirement. You need to have all VAT IDs registered and entered in our software in order to be able to apply for opt-out. This is directly correlated with the first reason because we want to make this process as smooth as possible in order to avoid additional questions and delays from the tax offices’ side.


NOTE: Keep in mind this is a sensitive option which will affect your VAT returns, please always ask your Account Manager for advice.


Contact your Account Manager at support@hellotax.com to help you with the next steps.