Distance selling and Thresholds
Definition of Distance selling
These are sales made by a VAT registered company in an EU state or outside the EU to a private individual or a company making exempt supplies (i.e. exempt from VAT) in another member state.
• The specific nature of Distance Selling :
Once the threshold is exceeded, these supplies are subject to mandatory VAT in the recipient country. The seller can opt to have the VAT of the recipient country applied once the threshold is exceeded.
• Territorial rules for Distance Selling :
From other EU Member states to France, the threshold is set at 100,000 Euros.
• Thresholds for other Member states :
|Germany||100.000 EUR||Latvia||35.000 EUR|
|Austria||35.000 EUR||Lithuania||35.000 EUR|
|Belgium||35.000 EUR||Luxembourg||100.000 EUR|
|Bulgaria||70.000 BGN||Malta||35.000 EUR|
|Cyprus||35.000 EUR||Netherlands||100.000 EUR|
|Denmark||280.000 DKK||Poland||160.000 PLN|
|France||35.000 EUR||Portugal||35.000 EUR|
|Estonia||35.000 EUR||Czech Republic||1.140.000 CZK|
|Finland||35.000 EUR||Romania||35.000 EUR|
|Greece||35.000 EUR||United Kingdom||70.000 GBP|
|Hungary||8.800.000 HUF||Slovakia||1.500.000 SKK|
|Ireland||35.000 EUR||Slovenia||35.000 EUR|
|Italy||35.000 EUR||Sweden||320.000 SEK|
If the annual supplies are lower than the threshold, the VAT in the country of origin applies.
- Excepting non-EU countries, where it is mandatory to appoint a fiscal representative in the recipient country.
- If the annual supplies are higher than the threshold, the VAT in the country of supply applies.
For supplies lower than the threshold, it is optional to apply the VAT in the recipient country. This option once applied, is irrevocable and irreversible.
Liable for the ESL in France :
1) French VAT applicable : no ESL.
2) VAT applicable in the recipient country : Dispatch ESL.
Other obligations :
1) French VAT applicable : no other obligations.
2) VAT applicable in the recipient country :
a - Obtain a VAT number in the recipient country to manage the VAT.
b - Submission of an intrastat declaration for the acquisitions in the recipient country.
For all further information about Distance Selling please contact the ASD Group.