- Understanding VAT Compliance: Selling to customers across EU borders involves complex VAT rules, particularly the Place of Supply Rules, which dictate that VAT is charged based on the customer’s location, especially for B2C distant sales. Sellers must monitor their sales against a €10,000 threshold; exceeding it requires compliance with the customer’s country VAT laws.
- Using OSS for Simplification: The One-Stop Shop (OSS) system simplifies VAT reporting for sellers engaged in cross-border sales, allowing them to report and pay VAT for multiple EU countries through a single portal. This can significantly reduce administrative burdens and minimize errors.
- Ongoing Vigilance Required: Businesses must remain vigilant about changing VAT regulations and ensure accurate compliance to avoid severe penalties. Regular monitoring of sales, understanding the nature of goods and services, and utilizing automated tools or expert consultations are critical for maintaining compliance in the evolving EU VAT landscape.
Source 1stopVAT
Latest Posts in "European Union"
- Ecofin report on EU VAT reforms
- Roadtrip through ECJ cases: Focus on Promotional activities/Discounts (Art. 79, 87, 90(1))
- Comments on ECJ case C-234/24 (Brose Prievidza): No VAT Exemption for Tooling Without Physical Movement
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – Jointly and severally liability of the payment of VAT” (Art. 205)
- ECJ Customs – C-488/24 (Kigas) – AG Opinion – Traders must inform consumers about customs duties before contracts
