If you sell goods to a business and these goods are sent to another EU country, you do not charge VAT if the customer has a valid EU VAT number. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.

Do you charge VAT on goods sold outside EU?

In general, supplies of services to business customers outside the EU are not subject to VAT. However, you must obtain sufficient evidence and proof that the customer is a taxable person.

What is distance selling VAT threshold?

Not selling digital services among the limit of 10,000 € in cross-border sales within one calendar year means that the local VAT rate (the VAT rate of your homecountry) applies for those sales. As soon as you exceed this limit, the VAT rate of the country of import is charged.

Are EU sales VAT exempt?

Under the UK’s VAT rules: VAT is charged on most goods and services sold within the UK and the EU. VAT is payable by businesses when they bring goods into the UK. Goods that are exported by UK businesses to non-EU countries and EU businesses are zero-rated, meaning that UK VAT is not charged at the point of sale.

What is the VAT threshold for 2022?

£85,000
General description of the measure The VAT registration and deregistration thresholds will not change for 2 years from 1 April 2022. The taxable turnover threshold, which determines whether a person must be registered for VAT, will remain at £85,000 until 31 March 2024.

Should UK companies charge VAT to EU?

VAT registered UK businesses will continue to zero-rate sales of goods to EU businesses. EU member states will treat goods entering the EU from the UK in the same way as goods entering from other non-EU countries. This means import VAT is due when the goods arrive in the EU.

Is click and collect distance selling?

The answer is generally no – a ‘click-and-collect’ style purchase is not usually a distance sale. This is because, whilst you might have placed the order online and paid a deposit, you will still sign the contract and any finance agreements, or pay the balance on site, the same as with a ‘bricks and mortar’ purchase.

At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.

If you sell Irish goods to businesses outside of the EU, you do not charge VAT. Therefore, it is also called zero-rated (0%). Please note that due to Brexit, this includes Great Britain. There is no VIES system for non-EU businesses.

What is distance selling for VAT?

Distance selling refers to sales made to non-taxable persons. These will be sales from a business to consumers (B2C), for example, retail customers or sales to businesses that are not required to be VAT registered.

In most EU countries you can apply for a special scheme that enables you to trade under certain conditions without the need to charge VAT. If your company makes taxable supplies of goods or services below a certain annual limit, it may be exempt from VAT.

What is EU distance selling?

What is Distance Selling? The EU VAT distance selling rules are a set of EU VAT rules that affect anyone selling goods online to private consumers throughout the European Union. These rules state that you charge local VAT until you exceed set thresholds in other EU countries.

Do distance selling regulations apply after Brexit?

Sellers from EU countries will see the biggest changes, as the EU VAT distance selling rules no longer apply to sales to UK customers, and for consignments over £135, the customer may have to pay VAT and Customs duty in addition, although the sale from the EU will be VAT-free.

Do you have to pay VAT when you distance sell in Europe?

Keep a careful record of where your clients are located as the distance selling thresholds are not the same across all EU member States. When a distance selling threshold is exceeded, EU VAT law will stipulate that you are legally obliged to register for VAT in that particular country.

When do distance selling vat thresholds go away?

Once over these limits within the same calendar year, it must apply for a number, see our EU VAT Registration briefing. On 1 July 2021 EU ecommerce VAT package will withdraw the distance selling thresholds. You may also read our EU Distance Selling VAT briefing. Not applicable.

When do I need to distance sell to the EU?

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.

Do you have to register to sell VAT in UK?

On 1 July 2021 EU ecommerce VAT package will withdraw the distance selling thresholds. You may also read our EU Distance Selling VAT briefing. Not applicable. Must UK VAT register to sell any level under 2021 UK ecommmerce VAT rules.