Distance Selling EU VAT Thresholds

Distance selling is when a non-resident company sells goods to EU consumers via the internet so for any e-commerce businesses, it’s important to understand the distance selling EU VAT thresholds. It’s one of the most common situations that result in needing a Foreign EU VAT registration.

Why is a VAT registration required for distance selling?

Because VAT is levied on the final consumer, local VAT authorities look to distance selling transactions as an avenue to earn revenue for their country. Therefore, they will expect businesses to VAT register, charge and collect their local VAT. Read more about the VAT registration process for distance sellers in our e-commerce registration section.  

VAT on Electronic/Digital services 

It’s important to establish the difference between distance selling and electronic/digital services. One of the biggest differences in the context of thresholds is that there are no VAT thresholds for electronic or digital services to consumers under the VAT MOSS rules.

What is the annual distance selling EU VAT Thresholds?

If a company exceeds the below annual distance selling EU VAT thresholds, they will need to apply for a European VAT number and register for VAT. If a company sells goods that are below these thresholds, there is no need to register for VAT.   

If you would like to view these thresholds within together with VAT rates, VAT number format, Intrastat threshold, you can view this comprehensive table.