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.
This is part of the Single VAT Registration pillar of the VAT in the Digital Age reforms.
Article 59c of the VAT Directive will be amended accordingly.
E-commerce package introduces small seller €10,000 threshold for goods
The threshold was introduced in 2019 digital, broadcast and telecoms services. It was then extended to goods in the July 2021 e-commerce package.
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 | 2030 (?): 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 | 2026 (?): 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 | |
