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EU introduces B2C e-services foreign VAT threshold

  • EU VAT
  • 21 August 2018 | Richard Asquith

EU introduces B2C e-services foreign VAT threshold

Member states of the European Union have been updating their VAT laws to introduce simplified B2C electronic services foreign VAT thresholds.

From 1 January 2019, small providers of digital services will be able to charge the VAT of their home country on sales to other EU states' consumers below a threshold of €10,000 per annum. This is instead of reporting any sales to consumers in other EU states at the local rate, and declaring the VAT through the single Mini One-Stop-Shop VAT return introduced in January 2015. The provider will also not have to comply with the foreign VAT invoicing rules – instead using their domestic laws.

Electronic services liable to VAT include income from: streaming media; games; e-books; cloud storage; downloads; membership on online sites; apps; and e-journals. The rules also extend to broadcast and telecommunications services.

Countries which have recently passed legislative changes include: Austria; Finland; and Germany.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.