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.
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.
Additionally, you have to determine thresholds separately for every country, from which the shipment of goods is made. For example – an entity has warehouses located in the territory of Poland and Germany and the goods are shipped to France. The distance selling threshold for France is counted separately for merchandise shipped from Poland and from Germany (you should not add up the sale of goods values shipped from different EU countries). If you want to know if you have reached the distance selling threshold, >> contact us
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 state||National currency||Euro equivalent|
|Austria||EUR 35 000|
|Belgium||EUR 35 000|
|Bulgaria||BGN 70 000||EUR 35 791|
|Croatia||HRK 270 000||EUR 36 501|
|Czechia||CZK 1 140 000||EUR 44 744|
|Denmark||DKK 288 000||EUR 37 510|
|Estonia||EUR 35 000|
|Finland||EUR 35 000|
|France||EUR 35 000|
|Germany||EUR 100 000|
|Greece||EUR 35 000|
|Hungary||EUR 35 000|
|Ireland||EUR 35 000|
|Italy||EUR 35 000|
|Latvia||EUR 35 000|
|Lithuania||EUR 35 000|
|Luxemburg||EUR 100 000|
|Malta||EUR 35 000|
|Netherlands||EUR 100 000|
|Poland||PLN 160 000||EUR 37 712|
|Portugal||EUR 35 000|
|Romania||RON 118 000||EUR 25 305|
|Slovakia||EUR 35 000|
|Slovenia||EUR 35 000|
|Spain||EUR 35 000|
|Sweden||SEK 320 000||EUR 30 346|
|United Kingdom||GBP 70 000||EUR 78 022|
This information is correct at the time of publishing (October 2020) but may change at any time.