It‘s important to know several things about VAT distance selling thresholds, especially when a Christmas period comes from the corner. Businesses need to ensure that they stay compliant over the whole holiday period. There are general rules, key points to remember and possible fines. Let‘s explore everything further on and get to know main things.
First, let‘s explain the rules
It‘s important to explain the rules of thresholds as not knowing them can greatly affect your business and especially e-commerce ones. Also, they can be applied to you if you sell through the website all across the Europe. What‘s more to know is that sellers who sell to prive consumer in EU, they are covered in the rules of distance selling thresholds.
What should be remembered
Thresholds are set individually to each EU country. Also, they are calculated by annual sales and the rules above are applied to EU VAT businesses who are selling goods for private individuals. Furthermore, once the threshold line is crossed, business becomes VAT registered. Finally, If threshold is crossed, local rate of VAT is automatically charged.
What are the fines and penalties?
This year was special because EU authotirites started to more intensively track down all the non-copliant businessmen and sellers. For this reason, it is important to follow the rules and do not ignore them. Charges await all those who ignore the distance selling thresholds.
Overall, stay compliant and you will be saved from penalties and other additional charges. Also, you won‘t have a headache whether your business will be busted or not. You will be able to live freely and be happy about your business success and not the failures.