Here you can read about the new rules regarding distance sales to private customers in the EU applicable from 1/7-2021:
- All national threshold amounts are deprecated and replaced by a new common EU threshold of EUR 10.000 total for all EU countries and for both commodities and TBE-services (previously contained in the MOSS reporting).
- All distance sales to private customers within EU is charged with local VAT in accordance with the country where the consumer is living.
- Thereby businesses with distance sales will be VAT liable in almost every EU country.
- The VAT is reported and paid quarterly through OSS reporting. (In Denmark this is done at “SKAT TastSelv”. It is necessary to be registered for this in advance.)
- Amounts (excluding VAT), the VAT rate on the specific goods/services sold in the period and the VAT amount for each country is reported in the local currency. The system will automatically perform a conversion to Euros.
- The deadline for reporting and payment is the last day of the month following the end of the quarter. First report in accordance with the new scheme will therefore be the third quarter of 2021 with a deadline of 31st October 2021.
- Local VAT on B2C sales to local customers will continue to be reported on the regular VAT application.
- The new scheme does not apply to reimbursement of EU purchase VAT – This needs to be applied for through a VAT refund application for the specific country.
- If goods are in storage and shipped from another EU country to private customers, it is still mandatory to be VAT registered locally. However, the sales VAT can be reported on the OSS report.
- If you sell through Amazon (FBA), it is necessary to handle both OSS reporting and local registrations in 6 member states so far, since this Amazon’s fulfillment centres are located there.
- The VAT you pay when selling to private customers in EU through OSS is not local VAT, but that of other EU countries. In case of missing payment, it is the other EU countries’ rules that apply.
NOTE: Late or missing reporting and payment might result in being excluded from using the system.
We can take care of your OSS reporting from Denmark if you authorize us on SKAT.
Contact us for a quote on the task on +45 77 30 60 60 or mail firstname.lastname@example.org
This is how VAT will be reported after 1st of July 2021
|Local VAT Reporting||One Stop Shop Reporting|
|Local B2C sales||Distance sales to private customers in all EU countries|
|Transport of goods to another EU country|
|B2B sales of goods to another EU country|
|Receiving goods on to storage in another EU country|
Import Scheme (IOOS)
From the 1st of July 2021 the VAT exemption for small shipments from countries outside the EU is terminated. This implies that going forward private consumers in EU must pay VAT on the full amount on packages reveived from countries outside the EU.
The import scheme is aimed at e-commerce businesses, which by distance sales is selling goods to private consumers in the EU, but where the commodity is shipped directly to the consumer from countries outside the EU (Dropshipping).
The scheme is a voluntary special scheme, which makes it easier to import goods from countries outside the EU in accordance with the new rules.
By using the import scheme, it is possible to report and pay VAT monthly on goods sold throughout the EU. This ensures that the EU consumer does not receive an extra billing for VAT and fees when they received the package. The value of the goods must not exceed 150 EUR. If the value of the goods exceeds 150 EUR, the consumer will be charged any customs and VAT unless the e-commerce is registered for VAT and import in the receiving country and thereby can offer delivery “Duty Paid” to the customer.
Please contact us if you have any questions or need help registering and/or reporting VAT using the import scheme or VAT and import registration abroad:
Phone +45 77 30 60 60 or mail email@example.com