EU introduces B2C e-services foreign VAT threshold
- Aug 20, 2018 | Richard Asquith
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.
