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

Slovakia considers lowering VAT Rates and expanding...

The Slovakian parliament is currently reviewing draft bills that will expand the list of goods eligible for the 5% reduced VAT rate to include additional food...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Philippines implements VAT on e-services...

The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services...

SEE MORE
VAT news
LATEST NEWS

European Commission grants extension of VAT split...

Despite deviating from Article 226 of Directive 2006/112/EC of the EU VAT Directive, Poland has been allowed to carry on using their VAT split payments regime...

SEE MORE
VAT news

Gated Content

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