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.

OPTION
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.