VAT E-Commerce

As from 1st of July 2021, domestic suppliers providing services and distance sales of goods to final consumers established in EU, have an obligation to apply the rate and pay the VAT of the MS of the customer using OSS.

For cross-border Telecommunication, Broadcasting and Electronically supplied (TBE) services AND intra-community distance sales of goods whose total value is below the €10.000 threshold no obligation arises.

As the threshold covers only cross-border (1) supplies of TBE and (2) intra-community distance sales of goods, suppliers providing services other that TBE may have an obligation to apply the VAT in the Member State of the customer in case such services' place of supply takes place in that Member State.

Even though the threshold was introduced for micro-businesses, it is still, to some extent, imposing an administrative burden as it only applies to TBE services that are not so common amongst micro-businesses.