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

ECOFIN agrees a draft directive on the 2028 proposed...

During May 2025, the Economic and Financial Affairs Council (ECOFIN) agreed a draft directive relating to the VAT rules for distance sales of imported goods...

SEE MORE
VAT news
LATEST NEWS

Philippines implements VAT on e-services provided by...

The Bureau of Internal Revenue (BIR) recently published Revenue Memorandum Circular No. 47-2025, this gives further detailed guidance relating to the...

SEE MORE
VAT news
LATEST NEWS

REMINDER: Estonia standard VAT rate increases to 24%...

From 1 July 2025, Estonia will increase its standard VAT rate from 22% to 24%. The reduced VAT rates will also increase from 9% to 13% and from 5% to...

SEE MORE
VAT news

Gated Content

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