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VAT e-retail

Many e-retailers do not know that when they sell goods or services to consumers in other EU countries, they can be deemed to registerer for VAT in those countries. It happens when their turnover exceeds the turnover threshold for the past 12 months in the EU countries sold to.  

When the e-retailer is obliged to register for VAT in another country, it's just that an obligation. To continue to bill local VAT is wrong and does not help. the sold merchandise is simply considered be sold on the black market in the country where the VAT should have been accounted for. Something that is obviously not good. As a result the e-retailer creates a tax liability in the other country for each item sold.  When missing out on this the debt to the tax-authority is piling up and when the misstake is finally found it has to be corrected. This by paing the correct amount of VAT to the tax-authority. On top of everything adds interest and sometimes hefty penalties. It
can thus be very expensive to do this wrong. The solution is relatively simple. We can help you make a VAT registration and we can also help you with the following VAT returns.

 
Thresholds distance selling
(Source Swedish tax-authority homepage 2011-02-22)

Distance selling means that goods are transported by the seller or on behalf of the seller from a country within the EU VAT area to a buyer in another country within the EU VAT area, where such goods are not to be taxed in the buyer. Mail order sales and Internet commerce are examples of distance selling.

Each member country establishes a so-called turnover threshold. When sales from one EU country to the not taxable purchaser in another EU country exceeds the threshold, the seller in will be liable for VAT in the recieving country. There, they must register for VAT and submit VAT returns. Turnover below the threshold are taxed as sales in the own country.

For new vehicles, such as cars, or excise duty, such as cigarettes, special rules apply.

Turnover thresholds for distance sales in the EU in September 2011

EU Country  Threshold  Value in euro
Belgien 35 000 EUR  
Bulgarien 70 000 BGN 35 791 EUR
Cypern 35 000 EUR  
Danmark 280 000 DKK 37 557 EUR
Estland 35 151 EUR  
Finland 35 000 EUR  
Frankrike 100 000 EUR  
Grekland 35 000 EUR  
Irland 35 000 EUR  
Italien 100 000 EUR  
Lettland 24 000 LVL 34 052 EUR
Litauen 125 000 LTL 36 203 EUR
Luxemburg 100 000 EUR  
Malta 35 000 EUR  
Nederländerna     100 000 EUR  
Polen  160 000 PLN 40 293 EUR
Portugal 35 000 EUR  
Rumänien 118 000 RON 28 012 EUR
Slovakien 35 000 EUR  
Slovenien 35 000 EUR  
Spanien 35 000 EUR  
Storbritannien 70 000 GBP 81 843 EUR
Sverige 320 000 SEK 36 232 EUR
Tjeckien 1 140 000 CZK 46 750 EUR
Tyskland 100 000 EUR  
Ungern  8 800 000 HUF 34 671 EUR
Österrike 35 000 EUR


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