Why you need software dedicated to VAT management
The biggest thing the EU tax authority can use to judge your VAT compliance is the completeness and traceability of your information. In 2025, managing this with Excel is:
- slow: thousands of marketplace transactions, fees, electronic invoices;
- risky: one wrong column can affect 10 countries and 10 rates;
- inefficient: your accountant asks you for reports in a specific format, not large files of raw data.
Software dedicated to VAT management automates:
- automatic rate calculation for 27 EU countries, updated when they change;
- aggregation by country, sale type, quarter, rate;
- generation of structured reports for OSS, LIPE, Intrastat and the annual VAT return;
- tracking of OSS threshold progress and IOSS limits.
This is what makes the difference between “the seller who’s constantly starting from zero” and the seller who walks into their accountant’s office with data already organised.
If you want to understand the regulatory context behind the OSS/IOSS thresholds, read first: E-commerce VAT thresholds 2025-2026: OSS, ViDA and IOSS updates.
Categories of tools available in 2025
1. General-purpose ERPs with a VAT module
Solutions like SAP, Odoo, Zucchetti, TeamSystem, etc. offer complete VAT modules, but are designed for companies with complex organisational structures: a CFO, dedicated accountants, boards of directors. Medium-to-high costs (often from €2,000/year up) and long setup times make these tools poorly suited to small-to-medium sellers.
2. Specialised international VAT tools
These are tools built to handle cross-border VAT compliance:
- Taxually, Quaderno, Avalara (for the EU/UK/US market);
- hellotax (EU and Italy focus).
They’re developed with attention to:
- integration with Amazon, eBay, Shopify;
- native handling of OSS, IOSS, Intrastat.
3. Tools specific to Amazon/marketplace sellers
This is where VATManager fits. Its strength is that it’s built from the seller’s point of view:
- starts from everyday problems: “VAT Transaction Report, OSS, IOSS, FBA stock, multichannel”;
- Italian-language interface;
- targets small-to-medium sellers with affordable pricing.
Simplified comparison table (2025)
| Criterion | Why it matters |
|---|---|
| Amazon API (LWA) integration | To import the VAT Transaction Report directly, without tedious monthly CSVs |
| Native OSS support | Automatic calculation for 27 EU countries with up-to-date rates |
| Multi-marketplace management | Amazon, eBay, Shopify and other channels on a single data foundation |
| Export for your accountant | Excel/CSV/PDF reports with the columns and formats your accountant needs |
| Anomaly detection | Automatic flagging of suspicious operations (e.g. 0% VAT on a physical good) |
| History and audit trail | Data retention for 10–15 years, as required by EU tax law |
| Cost-to-volume ratio | Sustainable for volumes from €20K to €5M/year without scaling exponentially |
Setting these criteria before choosing reduces the risk of picking a tool that doesn’t really work with your model (FBA, dropshipping, multi-marketplace).
VATManager: the strength for Italian sellers
VATManager was designed for sellers who:
- sell on European Amazon (including Pan-European), but also eBay and Shopify;
- use the VAT Transaction Report as their starting point;
- work alongside an Italian accountant but want to drive the EU VAT process themselves, not just “endure” it.
What sets it apart:
- simple setup: upload the CSV / Amazon API (LWA) data, the system aggregates by country, rate, transaction type;
- always up-to-date rates: 27 EU countries, centrally updated whenever a regulation changes;
- complete historical record: every year’s data is archived and enriched with new features, without losing compatibility with past years.
When is VAT software really necessary?
If your annual cross-border sales volume exceeds €20,000, it’s worth getting software. Stack together:
- incorrect rate application;
- errors in the OSS threshold calculation;
- untracked stock transfers;
and you can easily end up with penalties costing as much as years of a dedicated VAT software subscription.
If you want to see how FBA differs from FBM from a VAT perspective, read: FBA vs FBM: tax and VAT differences for Italian sellers.
Frequently asked questions
1. How much should I pay for VAT software for my volume? Generally the price grows with revenue or cross-border revenue. A good reference point for 2025 is:
- sellers up to €100K/year: €200–500/year;
- sellers €100K–500K: €500–1,500;
- sellers over €500K: €1,500–3,500.
2. Can I just rely on Amazon’s “Tax Remitted” programme and nothing else? Only in some cases. If Amazon is your only channel and you fall under specific scenarios (e.g. deemed reseller for some countries), you can delegate a lot to Amazon. But if you also sell on eBay, Shopify, or use Pan-European, you still need a tool to aggregate everything.
3. How do I choose between Taxually, Avalara and VATManager? Ask yourself two questions right away:
- what does your accountant use for the OSS return;
- which marketplaces do you use (Amazon, eBay, Shopify, etc.).
VATManager is the most tailored choice for small-to-medium Italian Amazon sellers. Taxually and Avalara excel for multi-country sellers with high volumes and a need for international support.