ViDA – EU sellers may only utilise from their resident country the B2C VAT threshold on cross-border sales
From January 2025, EU resident sellers will be limited in their use of the €10,000 intra-community distance selling threshold. Going forward, they will only be able to apply the threshold from the country they are established. E-commerce sellers will not be able to use the threshold for distance sales made from a stock of goods in another Member State.
Article 59c of the VAT Directive will be amended accordingly.
E-commerce package introduces small seller €10,000 threshold for goods
Below this threshold, sellers use their own VAT rate and return to calculate and remit VAT on sales. Above this, for all pan-EU sales combined, they must charge the VAT rates of the country of residence of their consumers. They may use the One Stop-Shop VAT return for reporting these sales to their local tax office.
EU VAT in the Digital Age reforms
|EU VAT in the Digital Age|
|3 reforms to improve efficiency of VAT for all and reduce fraud|
|1. Single VAT registration in the EU; extension of OSS to B2C own stock movements||2025: Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden|
|More details on Single VAT Registration in the EU|
|Marketplaces deemed supplier for EU sellers|
|EU IOSS mandated for marketplaces|
|EU tackles misuse of IOSS numbers|
|Quick fixes to existing e-commerce VAT rules|
|Call-off stock VAT simplification ends|
|Harmonisation of B2B Reverse Charge rules|
|2. Digital Reporting Requirements; e-invoicing||2028: Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931|
|Read more about EU Digital Reporting Requirements (DRR)|
|E-invoices mandated intra-community supplies 2028|
|EC Sales lists replaced by Digital Reporting Requirements|
|2014 EU legal permissions for e-invoicing lifted|
|3. VAT treatment of the platform economy||2025: Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation|
|Read more - Travel & accommodation platforms deemed suppliers for EU VAT|