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&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]
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.