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オプティ株式会社Mar 23, 2018 12:31:37 AM< 1 min read

Q. WHAT ARE THE THRESHOLDS UNDER EUROPEAN VAT LAW?

Introduction.

Cross-border e-commerce (E-commerce) has been expanding worldwide with Amazon, eBay, Rakuten, Shopify, WooCommerce, and Corona Vortex, and is now the focus of attention by all companies. Cross-border e-commerce has been introduced with the positive aspects of being able to start selling within minutes of creating a site, and new sales opportunities from markets around the world. On the other hand, local taxes and various other costs are not shared much: local taxes such as VAT are levied and collected by the seller on the local buyer, but even in the case of cross-border e-commerce, there are cases of taxation, collection, and reporting.

Not all tax accountants, lawyers, and other domestic professionals have knowledge of overseas tax and legal affairs.

IN THIS COLUMN, OPTI CORPORATION, WHICH HAS EXTENSIVE EXPERIENCE IN THE TAX ASPECTS OF CROSS-BORDER EC, PROVIDES A "CROSS-BORDER EC TAX NAVIGATOR" IN A Q&AMP;A FORMAT. WE HOPE THAT THIS CROSS-BORDER EC TAX NAVIGATOR WILL BE OF HELP TO VARIOUS COMPANIES CONSIDERING CROSS-BORDER EC.


Q] WHAT ARE THE THRESHOLDS UNDER EUROPEAN VAT LAW?

A]

About Thresholds

IN EUROPE, THERE IS A LINE OF SALES CALLED THE THRESHOLD. EVEN IF YOU ARE REGISTERED FOR VAT IN ONE COUNTRY, IF YOUR SALES FOR THE CALENDAR YEAR (JANUARY 1-DECEMBER 31) TO ANY OTHER MEMBER COUNTRY EXCEED THE THRESHOLD, YOU MUST IMMEDIATELY REGISTER FOR VAT IN THOSE COUNTRIES.

country name threshold (amount, dose, etc.)
   Austria 35,000Euro
   Belgium 35,000Euro
   Bulgaria BGN 70,000
   Croatia HRK 270,000
   Cyprus 35,000Euro
   Czech Republic CQK 1,140,000
   Denmark DKK 280,000
   Estonia 35,000Euro 
   Finland 35,000Euro 
   France 35,000Euro
   Germany 100,000Euro
   Greece 35,000Euro
   Hungary 35,000Euro
   Ireland  35,000Euro 
   Italy 35,000Euro
   Latvia 35,000Euro
   Lithuania 35,000Euro
   Luxembourg 100,000Euro
   Malta 35,000Euro
   Netherlands 100,000Euro
   Poland PLN 160,000
   Portugal 35,000Euro
   Romania RON 118,000
   Slovakia 35,000Euro
   Slovenia 35,000Euro
   Spain 35,000Euro
   Sweden SEK 320,000
   United Kingdom GBP 70,000

 


Disclaimer

This column contains general information only and is intended to be used at the reader's own risk. While every effort is made to improve the accuracy of the information, it may contain inaccuracies. Readers should consult a suitably qualified professional before making any decision or taking any action and assume the entire risk and responsibility for any loss arising from the use of this column.

 

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OPTI Inc.

OPTi Corporation provides international tax consulting services with a focus on indirect taxation.

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