Extension to intra-EU distance sales of goods (B2C):
- Become systematically subject to VAT in the MS of the customer (where the transport ends – transport direct or indirectly paid by the supplier)
- Current thresholds of EUR 35K to 100K (per MS of destination) are removed => replaced by EUR 10K threshold (supplies to ALL MS)
- The OSS can be used to declare and pay VAT due in other MS
- No more mandatory invoice requirements for such sales
Above thresholds – How it works:
- VAT of jurisdiction of consumption applies and VAT accrues to jurisdiction of consumption
- Example: A German (DE) retailer sells goods via distance selling to consumer in other EU Member States
- Before July 1, 2021: DE retailer to register for VAT in all jurisdictions of consumption
- Simplified compliance: OSS in Member State of identification
- Single VAT reporting and VAT payment covering all countries where goods are sold
Below thresholds
- DE retailer to register for VAT in Germany
- German VAT applicable on all sales incl. to non-German consumers
See also
- Chapter 1 – Current VAT rules on Distance Sales of Goods (Before July 1, 2021)
- Chapter 2 – Legislative acts for the implementation of the new E-Commerce VAT rules
- Chapter 3 – Services: Improvements to the Mini One Stop Shop in 2019-2021
- Chapter 4 – New art. 33 in the EU VAT Directive 2006/112/EU – Place of Supply Rules for Distance Sales of Goods
