EU member states to introduce B2C e-services foreign VAT threshold from January 2019

3 September 2018

From 1 January 2019, small suppliers of digital services will be able to charge VAT in their home country on sales of electronic services to consumers in other EU member states where the total amount of these sales is under a threshold of €10,000.

Currently there is no threshold for these types of sellers therefore the affected suppliers are required to charge VAT in the consumer’s country from the first sale that they make. They are then required to report and pay this VAT to that EU country either via a VAT registration or by using the Mini One-Stop-Shop VAT reporting mechanism.

However, EU member states are currently updating their VAT legislations in order to introduce this business to consumer (B2C) electronic services foreign VAT threshold, which will allow suppliers to avoid a VAT registration in the other EU member state until the €10,000 threshold is met.

The EU member states which have already introduced this into their VAT legislation include Austria, Finland and Germany.

LATEST NEWS

Belgium to cut e-book VAT rate from 1 January 2022

From 1 January 2022, the Belgium tax authorities have confirmed that the VAT rate on the sale of e-books, e-manuals, e-newspapers, and e-magazines sold online...

SEE MORE
LATEST NEWS

Ukraine to apply VAT on digital services from January...

From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses.  At present, non-resident...

SEE MORE
LATEST NEWS

Does a UK e-commerce business need an IOSS...

From 1 July 2021, the EU’s new e-commerce VAT reforms will be introduced allowing sellers to no longer pay import VAT at clearance on low-value consignments...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.