SERVICES/Distance Selling Threshold Monitoring

What does it mean for cross-border sellers?

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The frequency of cross-border distance selling to consumers over the Internet has had unprecedented growth in recent years. With 28 EU Member States each having different sales thresholds, businesses have to struggle with the international VAT issue that comes with this sector, often requiring local VAT registration in multiple countries across the EU.

When selling products into the other EU Member States, there are numerous things that you require to know. Each country in the EU has its own set of VAT compliance measures that you must obey to. On this page, we will briefly focus on what you require to know about monitoring your distance selling if you are shipping across the EU.

Each country in the EU has their own distance selling threshold with most around €35,000.00 and some can be as high as €100,000.00. It is vital to note that only your NET sales count towards this threshold if you are at present paying domestic VAT in your home country.

You must also total all sales that are being shipped from different EU Member States into a single Member State. This is crucial in order to appropriately calculate how close you are to reaching the threshold for that country.

The EU Distance Selling Threshold is calculated between the 1st January and 31st December of a calendar year.

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