The European Union is to introduce a €10,000 pan-EU e-services registration threshold. This means that initially small EU businesses will be able to use the VAT return and rate of their country of registration rather than that of their customers. The new threshold will apply from 1 January 2019. Note: this threshold now applies to the new EU e-commerce VAT package One Stop-Shop OSS return, which covers distance sales of goods to EU consumers and other services. Check EU VAT registration thresholds via VAT Calc’s live tracker.
Once over this threshold in the other 27 member states, they may still use the 2015 MOSS pan-EU VAT return, but will have to charge the VAT rates of the country of their customer.
This reform is being introduced following the 2015 e-services VAT rules changes which forced heavy VAT compliance requirements on the smallest of businesses. Follow all the European Union’s completed and planned reforms via VAT Calc’s EU VAT reform tracker.
Other simplifications to EU digital services compliance
At the same time, other simplifications are being introduced to the regime:
- Introduction of single piece of consumer residence evidence threshold requirement for suppliers of pan-EU e-services below €100,000 sales per annum. Generally, at least two non-contradictory pieces of evidence to establish the correct country of residency of the consumer must be collected by the supplier.
- The right for e-services suppliers using MOSS to apply the VAT invoicing rules of their country of residency, instead of their consumers’.
- Withdrawal of the block to non-EU suppliers of e-services to use the non-Union MOSS scheme if they already have a standard EU VAT registration in place.