Category: Uncategorized

If an e-commerce company sells and ships goods to private individuals in the European Union a special regime called distance selling applies. Initially a retailer applies the VAT rate of the member state from which the goods are shipped. Once the country of arrival’s annual threshold for distance selling has been reached the seller must register in that country and apply the local VAT rules and rate.

Member State Annual Threshold Currency
Austria 35,000 EUR
Belgium 35,000 EUR
Bulgaria 70,000 BGN
Croatia 270,000 HRK
Cyprus 35,000 EUR
Czech Republic 1,140,000 CZK
Denmark 280,000 DKK
Estonia 35,000 EUR
Finland 35,000 EUR
France 35,000 EUR
Germany 100,000 EUR
Great Britain 70,000 GBP
Greece 35,000 EUR
Hungary 8,800,000 HUF
Ireland 35,000 EUR
Italy 35,000 EUR
Latvia 35,000 EUR
Lithuania 35,000 EUR
Luxembourg 100,000 EUR
Malta 35,000 EUR
Netherlands 100,000 EUR
Poland 160,000 PLN
Portugal 35,000 EUR
Romania 118,000 RON
Slovakia 35,000 EUR
Slovenia 35,000 EUR
Spain 35,000 EUR
Sweden 320,000 SEK

Member State Standard Rate Reduced Rate
Austria 20% 10% / 13%
Belgium 21% 6% / 12%
Bulgaria 20% 9%
Croatia 25% 5% / 13%
Cyprus 19% 5% / 9%
Czech Republic 21% 10% / 15%
Denmark 25% –
Estonia 20% 9%
Finland 24% 10% /14%
France 20% 5,5% / 10%
Germany 19% 7%
Great Britain 20% 5%
Greece 24% 6% / 13%
Hungary 27% 5% / 18%
Ireland 23% 9% / 13,5%
Italy 22% 5% / 10%
Latvia 21% 12%
Lithuania 21% 5% / 9%
Luxembourg 17% 8%
Malta 18% 5% / 7%
Netherlands 21% 6%
Poland 23% 5% / 8%
Portugal 23% 6% / 13%
Romania 19% 5% / 9%
Slovakia 20% 10%
Slovenia 22% 9.5%
Spain 21% 10%
Sweden 25% 6% / 12%

The European Commission has published proposals for significant modification of the VAT legislation for online sales of goods and services during the period 2018-2021. One of those changes is the extension of the Mini One Stop Shop arrangement. Currently, online traders have to register for VAT in all the Member States to which they sell goods. The commission now proposes that as of 2021 businesses make one simple quarterly return for the VAT due across the whole of the EU, using the online VAT One Stop Shop in member state of choosing.

Read the full proposal here http://www.consilium.europa.eu/media/31929/st14126en17.pdf