Sales tax and EU VAT software for KashFlow
KashFlow is HMRC-recognised and submits your VAT return directly under Making Tax Digital. Sell a digital service to an EU consumer and its own guidance says to charge their local rate, while the software's only move is to take the sale out of the UK return. Commenda applies that rate, files the OSS return, and covers all 45 US states that levy sales tax.
Trusted by global businesses
Keep the HMRC submission, add the rest
KashFlow is HMRC-recognised and submits your VAT return directly under MTD for VAT. Commenda leaves that alone and takes on the countries KashFlow has no return for, across 70+ countries and all 50 US states.
Charge the destination rate on EU sales
IRIS documentation says a UK company selling digital services to an EU customer should charge that customer's local rate. Commenda works out which rate that is, applies it per sale, and files the return it belongs on.
Monitor your global exposure
KashFlow reports on the VAT registration you already hold. Commenda measures the same transactions against economic and physical thresholds in 50 states and 70+ countries, with alerts at 80% of a threshold.
Coverage comparison
What KashFlow submits, and what it reports
KashFlow files one return and reports the rest. These are the seven jobs a cross-border business has to cover. Its figures come from its own pricing page and Making Tax Digital page, the IRIS product page, and the IRIS help hub on digital services to an EC customer, checked on July 30, 2026.
UK VAT returns
- KashFlow
- Handled. HMRC-recognised, and the return submits directly under MTD for VAT
- Commenda
- Filed too, on the same calendar as every other country you owe
VAT on EU digital services
- KashFlow
- Partly. A sales code flag takes the sale out of scope and reports box 6 only
- Commenda
- Destination rate applied per sale, then declared on the OSS return
Registering somewhere new
- KashFlow
- Not handled. You connect the one VAT registration HMRC already gave you
- Commenda
- Permits in all 50 states, EU VAT with OSS and IOSS, and GST across APAC and Canada
US sales tax
- KashFlow
- Not handled. Nothing in the product or the help hub addresses US state tax
- Commenda
- Calculated, filed and remitted in all 45 states that levy it
Knowing you owe tax somewhere new
- KashFlow
- Not handled. It reports on the registration you hold, not the ones you need
- Commenda
- Thresholds tracked in 50 states and 70+ countries, with alerts at 80%
Exemption certificates
- KashFlow
- Stored, not collected. The customer record takes a VAT-registered-in-the-EC flag
- Commenda
- Collected, validated, stored, and applied automatically where they are valid
Revenue that never reaches KashFlow
- KashFlow
- Not handled. Sales landing from another platform are not re-rated
- Commenda
- Marketplaces, billing platforms and other ledgers roll into one figure
| KashFlow |  | |
|---|---|---|
| UK VAT returns | Handled. HMRC-recognised, and the return submits directly under MTD for VAT | Filed too, on the same calendar as every other country you owe |
| VAT on EU digital services | Partly. A sales code flag takes the sale out of scope and reports box 6 only | Destination rate applied per sale, then declared on the OSS return |
| Registering somewhere new | Not handled. You connect the one VAT registration HMRC already gave you | Permits in all 50 states, EU VAT with OSS and IOSS, and GST across APAC and Canada |
| US sales tax | Not handled. Nothing in the product or the help hub addresses US state tax | Calculated, filed and remitted in all 45 states that levy it |
| Knowing you owe tax somewhere new | Not handled. It reports on the registration you hold, not the ones you need | Thresholds tracked in 50 states and 70+ countries, with alerts at 80% |
| Exemption certificates | Stored, not collected. The customer record takes a VAT-registered-in-the-EC flag | Collected, validated, stored, and applied automatically where they are valid |
| Revenue that never reaches KashFlow | Not handled. Sales landing from another platform are not re-rated | Marketplaces, billing platforms and other ledgers roll into one figure |
Calculate taxes globally on KashFlow using Commenda
KashFlow handles an EU digital service with a checkbox on the sales code, which takes the sale out of scope of UK VAT and puts it in box 6 of the VAT report. It does not hold EU rates. Commenda works out the correct rate from the customer's country and what you sold, applies it per line, and keeps the taxable and out-of-scope figures separate.
Track your global exposure from KashFlow
KashFlow reports against the VAT registration you connected to HMRC. Commenda reads the same transactions and measures every country and state you sold into, registered or not, against economic and physical thresholds. Connecting KashFlow backfills your history, so exposure you already carry shows next to this month's sales. Alerts fire at 80% of a threshold, before you cross it.
Automatically remit transactions around the world
KashFlow submits one return, to HMRC. Commenda prepares and files the rest from the same data: OSS quarterly, IOSS monthly, US state returns on each state's own frequency, and GST across APAC and Canada. Remittance is tracked per jurisdiction, and amended returns are filed where a period needs correcting. Nothing gets exported or re-keyed.
Manage your customers and exemptions in one place
KashFlow's out-of-scope treatment depends on the customer being flagged VAT registered in the EC with an EC address. If that flag is wrong, the VAT report is wrong. Commenda validates each customer tax ID and stores it against the record with the system it came from. US exemption certificates are collected through a portal, applied where valid, and chased on expiry.
Consolidation
Why the UK return is only one of your returns
KashFlow is an IRIS product for UK small businesses and sole traders, and its tax job is the HMRC submission. A cross-border business needs registrations, destination rates and returns in places KashFlow has no form for. Commenda covers that side.
Out of scope of UK VAT is not out of scope everywhere
IRIS documentation states that if a UK VAT registered company sells digital services to an EC customer, VAT should be charged at that customer's local rate. The mechanism KashFlow provides is a checkbox that removes the sale from the UK return. The VAT is still owed. It is owed to a member state, on a return KashFlow does not produce.
A UK seller gets no EU threshold to sit under
The EU's EUR 10,000 place-of-supply threshold requires the supplier to be established in exactly one EU member state. A UK company is established in none. So the place of supply is the customer's member state from the first sale, and the OSS return runs quarterly rather than on your UK VAT period. Commenda runs both calendars alongside global indirect tax in 70+ countries.
US thresholds count every channel you sell through
A UK business selling into the United States faces 45 states that levy sales tax, each with its own economic nexus threshold. Those tests run on total sales into a state, from every channel you use. KashFlow holds the invoices you raised in KashFlow. On the Starter plan that is ten invoices a month, and no state adjusts its threshold for the plan you are on.
One ledger behind every channel
Every source connects to one ledger. Each transaction carries its origin, its product code, and any tax already collected, so marketplace revenue stays separate from revenue that still needs tax. The result is one exposure figure per state and per country, one return per period, and every line traceable back to the sale it came from.
Cost of growth
What cross-border tax costs on top of KashFlow
KashFlow publishes its plan prices and what each plan includes. The gating is worth reading closely, because multi-currency starts on the Business plan and the registrations and returns a cross-border business needs are not on either plan list.
| What you need | Where KashFlow puts it |
|---|---|
| Starter plan | £13.50 a month. Ten invoices, up to 25 bank transactions reconciled, one user. Multi-currency and repeat invoices are excluded |
| Business plan | £27.50 a month. Unlimited invoices, multi-user, and multi-currency. Annual is £178 a year plus VAT against an RRP of £291.50 |
| What both plans file | One VAT return, to HMRC, under MTD for VAT. Payroll sits outside both plans |
| EU digital services | A checkbox on the sales code that treats the supply as outside the scope of UK VAT and reports it in box 6 only |
| Flat Rate Scheme eligibility | VAT turnover of £150,000 or less excluding VAT, applied for and accepted by HMRC. Capital assets from £2,000 stay reclaimable |
| MTD for Income Tax | Documented as an HMRC rule starting April 2026 above £50,000. Submitting quarterly updates from KashFlow is not documented |
| VAT threshold in its own guidance | KashFlow's MTD page gives the registration threshold as £85,000 and dates the regime from April 2019. HMRC's figure is £90,000 |
Starter plan
£13.50 a month. Ten invoices, up to 25 bank transactions reconciled, one user. Multi-currency and repeat invoices are excluded
Business plan
£27.50 a month. Unlimited invoices, multi-user, and multi-currency. Annual is £178 a year plus VAT against an RRP of £291.50
What both plans file
One VAT return, to HMRC, under MTD for VAT. Payroll sits outside both plans
EU digital services
A checkbox on the sales code that treats the supply as outside the scope of UK VAT and reports it in box 6 only
Flat Rate Scheme eligibility
VAT turnover of £150,000 or less excluding VAT, applied for and accepted by HMRC. Capital assets from £2,000 stay reclaimable
MTD for Income Tax
Documented as an HMRC rule starting April 2026 above £50,000. Submitting quarterly updates from KashFlow is not documented
VAT threshold in its own guidance
KashFlow's MTD page gives the registration threshold as £85,000 and dates the regime from April 2019. HMRC's figure is £90,000
Figures verified on July 30, 2026 against KashFlow pricing, IRIS help hub, IRIS help hub, IRIS help hub and KashFlow and GOV.UK.
From the field
Trusted by businesses across the globe
“The platform works exactly the way I need it to. I have one team member who manages all of our exemption certificates, and that functionality has been particularly efficient for us. It allows him to handle everything seamlessly, making the handoff significantly easier.”
VP of Finance, TRX
Compare Commenda sales tax software with competitors
If HMRC is the only authority you file with, KashFlow already does it. We compare the cross-border alternatives side by side on coverage, ratings, and real pricing, and we say where each one wins.
More sales tax resources
Guides from the Commenda team on OSS and IOSS, EU VAT on digital services, and VAT ID verification.
Frequently asked questions
Yes. KashFlow is listed on the HMRC website as MTD for VAT compatible software, and you connect it once through Taxes, VAT, Connect to HMRC using your Government Gateway credentials. From then on the return is prepared and submitted from inside KashFlow. That covers the one country it has a return for. Commenda files everywhere else, across 70+ countries and all 50 US states, on each jurisdiction's own frequency, and leaves your HMRC submission where it is.
It takes them out of the UK return. IRIS documentation says a UK VAT registered company selling digital services to an EC customer should charge that customer's local rate. What KashFlow provides is a Digital Service checkbox on the sales code, which treats the supply as outside the scope of UK VAT so it appears only in box 6, the total value of sales. IRIS recommends two separate sales codes so EU and UK customers do not mix. The rate itself, and the return it belongs on, are left to you. Commenda applies the rate and files the OSS return.
Yes, as far as IRIS says publicly. IRIS sells it as IRIS KashFlow Bookkeeping, describes it as cloud accounting software for small businesses and sole traders, and its help hub topics were last updated in March 2026. We could not find any vendor statement retiring the bookkeeping product, so we are not going to invent a date for one. What is worth checking is which figures your copy of the guidance is working from. Its Making Tax Digital page still gives the VAT registration threshold as £85,000, and HMRC's threshold is £90,000.
Not that IRIS documents. The help hub has a Making Tax Digital for self-assessment page which explains HMRC's rules, that the first phase starts in April 2026 for sole traders and landlords earning above £50,000, and that you submit a quarterly update and then a final declaration by 31 January. It links a guide rather than a how-to for submitting from KashFlow, and the help hub's submission topics are all under MTD for VAT. Ask IRIS before you rely on it for income tax.
No. Nothing in the KashFlow plan list, the IRIS product page or the help hub addresses US state sales tax. A UK business selling to US customers faces 45 states that levy it, each setting its own economic nexus threshold, registration process and filing frequency. Commenda registers you, calculates tax at the transaction, tracks exposure in all 50 states, and files and remits the returns with an in-house team rather than a ticket queue.
Not on the UK side. IRIS documents the Flat Rate Scheme in KashFlow, including the £150,000 turnover limit to join, the calculation on the VAT-inclusive figure, and the exception that lets you reclaim VAT on capital assets from £2,000. It also notes that purchases from VAT registered businesses in Europe fall outside the scheme's scope. Commenda does not touch how your UK return is prepared. It adds the registrations and filings outside the UK, where the scheme does not exist.
Yes, and it is the most common multi-jurisdiction problem we hear. One portal, one calendar, and one team handling filing and remittance across every country you are registered in, which removes the manual currency handling and the country-by-country back and forth with each tax authority. UK VAT input credit reclamation is part of the UK service, so eligible expenses are pulled from the ledger and the reclaim goes in with the return.
Yes. Commenda supports 100+ integrations, so a storefront, a marketplace or a billing platform connects directly rather than being imported into the ledger first. Where no connector exists, a monthly CSV with mapped fields for transaction date, amount, ship-to state and postcode is fully supported. There is also an API for calculation, nexus determination and exemption certificate lookup if you need tax inside your own product.
Custom integration support for your business
Every business runs its accounting differently, and those processes exist for good reasons. We map how yours works and build the integration to match, rather than asking you to work around ours.
Indirect Tax
Monitor nexus exposure, register, file, and remit sales tax and VAT in one platform. Commenda keeps you compliant across 100+ jurisdictions.
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