When ecommerce seller needs sales tax registration in EU?

 

ecommerce seller accountants

From September 2021, the rules regarding VAT registration in the EU for ecommerce sellers are based on the new EU VAT e-commerce package that came into effect on July 1, 2021. Here are the key points regarding when an ecommerce seller needs sales tax registration in the EU:

 

Distance Selling Thresholds

If you are an ecommerce seller based outside the EU (a non-EU seller) and you sell goods to EU customers, you may need to register VAT in an EU member state once you exceed the distance selling thresholds of a particular country.

 

Distance Selling Threshold Values

The distance selling VAT thresholds vary by country and are set by each individual EU member state. Before the new rules, each member state had its own threshold, which could range from around €35,000 to €100,000 in annual sales. If you surpassed the threshold in a specific country, you were required to register VAT in that country and charge VAT at the applicable rate.

 

One-Stop Shop (OSS) Scheme

To simplify VAT compliance for ecommerce sellers, the EU introduced the One-Stop Shop (OSS) scheme. The OSS allows non-EU sellers to register for VAT in one EU member state and then submit a single VAT return covering all their EU sales, rather than registering for VAT in each individual country.

 

OSS for Digital Services

For non-EU sellers of digital services (e.g., downloadable products, streaming, e-books) to EU consumers, there's the MOSS (Mini One-Stop Shop) scheme. The MOSS scheme allows sellers to register in one EU member state and declare VAT on digital services across the EU through a single VAT return.

 

Import One-Stop Shop (IOSS) Scheme

For goods imported into the EU with a value of up to €150, the Import One-Stop Shop (IOSS) scheme allows sellers to collect and remit VAT at the point of sale. This way, the VAT is handled at the time of purchase, simplifying the customs process for customers.

 

It's important to note that tax laws and regulations can change over time, so I recommend checking with a tax professional or the relevant EU authorities to get the most up-to-date information on sales tax registration requirements in the EU.


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