New VAT rules in distance sales from July 1st

July 5, 2021

As from 1 July, new VAT rules apply for cross-border e-commerce activities B2C, (from business to final consumer). The existing limit provided by each respective country (€35.000 or €100.000) is abolished for intra-Community distance sales, which, if exceeded, companies had to pay VAT to the consumer’s Member State.

The new provisions now set a new limit of 10,000 for the whole of the EU, below which intra-Community distance selling of goods can continue to be subject to VAT in the Member State in which the company is established.

However if companies exceed this limit, they will be able to reimburse the tax due to other Member States through a so called Single Address Box (OSS).