Vatx — EU and cross-border value added tax for small | vatx.org

Thresholds and the reverse charge

Vatx — EU and cross-border value added tax for small | vatx.org

For consumer sales the EU-wide line is €10,000 of cross-border sales in a calendar year: below it you may keep charging home-country VAT, above it the customer's country rate applies and the One Stop Shop is the portal. For business customers there is no threshold at all — the reverse charge moves the tax to the customer from the first invoice, provided their VAT number validates in VIES.

Before 1 July 2021The Mini One Stop Shop (MOSS) handles cross-border consumer sales of digital services inside theEU.1 July 2021The One Stop Shop becomes the only portal for intra-EU consumer sales of services and digitalgoods, and the €150 IOSS route for low-value imports takes effect.Since 1 July 2021MOSS remains only for supplies to certain non-EU destinations such as Norway and Switzerland,and for Northern Ireland.Now in motionEU rules on low-value parcels are changing, so the customs duty and handling fees around IOSSconsignments are under revision.
One sale, two regimes: the customer's status — consumer or VAT-registered business — decides who accounts for the tax.

01

Thresholds

Every member state draws its own line — from a few thousand euro to roughly €200,000 in Poland and CZK 1,000,000 in Czechia. The full map sits on the thresholds page.

02

Reverse charge

For business customers the tax moves to the buyer from the first invoice, with no threshold at all. Validation through VIES is what makes a 0% invoice hold.

03

OSS and IOSS

One portal for consumer sales of services and digital goods inside the EU, another for imported goods up to €150. The two ceilings — €10,000 and €150 — decide which one a sale meets.

The €10,000 line for consumer sales

Sell to consumers across an EU border and one number decides the regime: €10,000 of cross-border sales in a calendar year.

Below that line, a small supplier may keep charging its home-country VAT on cross-border sales of services and digital goods to EU consumers. Above it, the tax follows the customer: the destination member state's rate applies to every consumer sale, and the One Stop Shop is the single portal for declaring it.

The line counts worldwide cross-border sales to consumers, not sales per country, and it resets each calendar year. A seller established in a 17% country and a seller in a 27% country face the same €10,000 test — what changes is which rate book they open once they pass it.

Domestic exemption thresholds are a separate layer and should not be confused with this one. They run from a few thousand euro in the lowest member states up to roughly €200,000 in Poland and CZK 1,000,000 in Czechia, so the same turnover can be taxable in one country and exempt in the next.

Which regime fits the sale

B2C services

Selling to a consumer

Destination VAT applies once cross-border consumer sales pass €10,000 in the calendar year, declared through OSS. Below the line, home-country VAT can still apply.

B2B

Selling to a business

No threshold, no OSS: validate the customer's VAT number in VIES, invoice at 0% with the number and country noted, and the customer accounts for the tax.

Imports ≤ €150

Low-value goods into the EU

IOSS collects the VAT at checkout on consignments up to €150 of intrinsic value. Duty and handling fees sit outside the scheme.

Imports > €150

Heavier consignments

Import VAT at the destination rate is due at the border, alongside any customs duty. A €100 parcel into a 19% country means roughly €19 of VAT before duty.

Legacy

What MOSS still does

The old Mini One Stop Shop survives only for supplies to certain non-EU destinations such as Norway and Switzerland, and for Northern Ireland. Intra-EU consumer sales go through OSS alone.

Domestic

Staying under a national threshold

Exemption lines run from a few thousand euro to about €200,000 in Poland. Under the line, no registration; over it, the national rate book and filing calendar attach.

The same turnover can be taxable in one member state and exempt in the next — the threshold, not the seller, decides.
A VIES mismatch usually means a company registration number was supplied instead of a VAT number.

The figures that decide the regime

The numbers that decide which VAT rule applies to a sale
What is measuredValueWhere it applies
Lowest standard VAT rate in the EU17%Luxembourg
Highest standard VAT rate in the EU27%Hungary
Typical reduced-rate band5% – 18%Most member states
Cross-border B2C sales line for OSS€10,000 per calendar yearIntra-EU consumer sales of services and digital goods
IOSS import ceiling€150 intrinsic value per consignmentGoods imported from outside the EU
Largest small-business exemptionabout €200,000 turnoverPoland
Czech small-business exemptionCZK 1,000,000 turnoverCzechia
Usual VAT payment window15th – 25th of the following monthMost member states
The numbers that decide which VAT rule applies to a sale

What sellers ask before the first cross-border invoice

My customer's number fails VIES — can I still invoice at 0%?
No — a 0% invoice needs a number that validates. A mismatch usually means a company registration number was supplied instead of a VAT number, so ask for the VAT number in the national format, such as nine digits for Germany or eleven for Italy.
I'm under €10,000 in cross-border sales — must I join OSS?
Not necessarily. Below €10,000 of cross-border consumer sales in the calendar year you may keep charging home-country VAT. Once you pass the line, destination VAT applies and OSS is the portal for declaring it.
Does the reverse charge ever apply to private customers?
No. The reverse charge is strictly business-to-business: the customer must be VAT-registered and the number must validate in VIES. Consumers are charged destination VAT instead.
Does IOSS take care of customs duty as well?
No — IOSS collects VAT only, and only on consignments with an intrinsic value at or below €150. Customs duty and handling fees are separate, and the rules on low-value parcels are changing.

Where the rules live

The list points to the primary rulebooks — EU VAT legislation, national threshold schedules and the VIES format specification — rather than to commentary.

The €10,000 linefor consumer salesWhen the reversecharge appliesValidate the numberbefore you invoiceFrom quote toreturn: the workingIf you ship goods,the border answersRegistrationthresholds and the
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