How to properly record returns in your e-commerce bookkeeping (per country)?

Returns seem simple, but they often create headaches in your VAT reporting

Properly handling returns in your bookkeeping requires specific knowledge of VAT rules per EU country. Here’s what every e-commerce seller needs to know:

1. The basics of processing returns in the EU

Short answer: A return is processed by reversing the original sale, including VAT. A credit note may be required, depending on the country.

Returns affect your revenue reporting, VAT filings and inventory. In most EU countries, the original sale must be reversed — including the correct VAT amount.

Steps to follow:

1. Reverse the original sale.

2. Apply the correct VAT rate to the return.

3. Create a credit note (if applicable).

4. Ensure it’s reflected in your VAT reports.

2. Return processing per country: Netherlands, Belgium, Germany

Netherlands

Short answer: In the Netherlands, returns are corrected using a credit note and the applicable VAT rate (usually 21% or 9%).

• Legal return period: 14 days after receipt

• VAT correction: via credit note or negative revenue line

• Tax authority: prefers correction in the original return period, but current period is often accepted with explanation

Example:
A customer returns a product worth €121 incl. VAT (21%). The credit note should reflect €100 excl. VAT and €21 VAT.

Belgium

Short answer: In Belgium, returns must be booked through a credit note that mirrors the original invoice.

• Legal return period: at least 14 days for online purchases

• VAT: mostly 21%, sometimes 6% or 12%

• Requirement: mention reason for return on the credit note

Important: Belgian authorities are strict. Keep documentation of return and communication with the customer.

Germany

Short answer: In Germany, returns require a “Gutschrift” (credit note) that adjusts the VAT (usually 19% or 7%).

• Return period: 14 days (per Fernabsatzgesetz)

• VAT: adjust in the original VAT period if possible

• For B2B: additional documentation may be required

Tip: German tax offices pay close attention to consistency. Keep monthly records tidy and chronological.

3. VAT and credit notes

Short answer: A return means less VAT due. You reflect this via a credit note or negative sales line.

How it works

When a return is processed:

• VAT from the original sale is reversed

• The correction is included in the VAT return

• You use the same VAT rate as the original transaction

Real-world example

A Belgian customer returns an item sold at €50 + 21% VAT:

• Credit note = €50 + €10.50 VAT

• The VAT return reflects a €10.50 reduction in payable tax

4. Common mistakes and how to avoid them

Short answer: Most mistakes involve skipping the VAT correction or using the wrong reporting period.

Top 5 mistakes:

1. No credit note issued
   → Leads to overpaid VAT

2. Incorrect VAT rate applied to the return
   → Especially common with mixed product types

3. Return booked in the wrong period
   → Results in inaccurate reports

4. Missing proof of return or customer communication
   → Can be required during audits

5. Manual processing in spreadsheets
   → Increases risk of errors

Solution: Use software that matches returns with original sales and applies country-specific VAT logic automatically.

5. How Staxxer helps you stay compliant

Short answer: Staxxer helps you process returns correctly per country, including the VAT correction and proper reporting.

With Staxxer:

• Returns from marketplaces are automatically imported

• You get clear insights into VAT impact and return rates

• All return-related figures are reflected in your dashboard

• You stay compliant without extra admin stress

Example

A customer returns an item sold via Amazon Germany.
Staxxer links the return to the original transaction, applies the correct 19% VAT adjustment, and updates your dashboard — no manual work needed.

Summary: what to remember

• Return = reverse original sale
• VAT correction = credit note
• Reporting period = important for clarity
• Automation = fewer mistakes, more time saved

What’s next?

Want to stop worrying about return admin and inconsistent VAT filings?

Let your back office do the work.
With Staxxer, you get real-time return data, automatically updated figures, and accurate VAT processing across Europe.

Book a demo and see how it works.