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Distance selling thresholds in EU in 2021

Publication date: 01.01.2021

In recent years, e-commerce sales have been growing very dynamically, which can be seen on the example of the Amazon platform. If selling online, there are also tax issues related to VAT reporting in different countries.

 

What is the Distance Selling?

Distance selling threshold for individuals with no economic activity has significant meaning when talking about the obligation of VAT registration in different EU countries. Particularly, the obligations of VAT registration in a given EU country arises if the value of net revenue (excluding VAT) derived from the sale of goods shipped to a given EU country exceeds a certain limit.

The data below is not current if you are reading this article after July 1, 2021. Currently, the VAT OSS procedure for online retailers is in force. Must read

What is VAT-OSS? Changes to VAT settlements in the EU for online retailers – Amazon, eBay, online shops since July 1, 2021.

Threshold limit for distance selling

You have to remember that the threshold value refers to the value of sales of goods within a calendar year, however when the threshold is exceeded, you have to register for VAT in a given country immediately, you should not wait with that until the next calendar year. A threshold value is determined individually by each EU country and current distance selling thresholds are published by the European Commission.

Distance Selling Rules

As a rule, until the date of exceeding the distance selling threshold sale of goods is subject to taxation in the country of departure of goods. After exceeding the threshold you have to pay VAT in the country of arrival of goods. However, there is also an exception to this rule. In particular, the taxpayer has the possibility to choose the place of VAT taxation in the country of arrival of goods, regardless of the value of goods sold. For that purpose, you have to meet formal conditions determined for particular EU countries (e.g. submitting a proper form, etc.). If you want to get more >>contact us

VAT Threshold limits in Europe

Member stateNational currencyEuro equivalent
AustriaEUR 35 000
BelgiumEUR 35 000
BulgariaBGN 70 000EUR 35 791
CroatiaHRK 270 000EUR 36 501
CzechiaCZK 1 140 000EUR 44 744
DenmarkDKK 288 000EUR 37 510
EstoniaEUR 35 000
FinlandEUR 35 000
FranceEUR 35 000
GermanyEUR 100 000
GreeceEUR 35 000
HungaryEUR 35 000
IrelandEUR 35 000
ItalyEUR 35 000
LatviaEUR 35 000
LithuaniaEUR 35 000
LuxemburgEUR 100 000
MaltaEUR 35 000
NetherlandsEUR 100 000
PolandPLN 160 000EUR 37 712
PortugalEUR 35 000
RomaniaRON 118 000EUR 25 305
SlovakiaEUR 35 000
SloveniaEUR 35 000
SpainEUR 35 000
SwedenSEK 320 000EUR 30 346

 

Adam Grabiński