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
Romania to introduce mandatory business to government...
The Romanian tax authorities have confirmed that businesses that sell to government departments will be required to issue e-invoices from 1 July 2022. Since...
SEE MORE
LATEST NEWS
New EU e-commerce packages – EU confirms initial...
The European Union (EU) has released statistics showing that the introduction of the EU e-commerce packages in July last year, has been a success. The figures...
SEE MORE
LATEST NEWS
Australia raises AUS$760 million in GST after...
The Australian Board of Taxation has announced that since the removal of the Low Value Imported Goods (LVIG) regime in July 2018, it has collected GST on low...
SEE MORE