A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally based on the increase in value of a product or service at each stage of production or distribution.
Distance sales (mainly for online sellers) are intra-community sales between an e-commerce and a final consumer (B2C) Once the sales threshold in a member country is exceeded, the online seller is obliged to request a VAT number and pay VAT in that country.
Distance selling threshold:
| EU member state | Threshold | Currency |
|---|---|---|
| Austria | 35,000 | EUR |
| Belgium | 35,000 | EUR |
| Bulgaria | 70,000 | BGN |
| Croatia | 270,000 | HRK |
| Cyprus | 35,000 | EUR |
| Czech Republic | 1,140,000 | CZK |
| Denmark | 280,000 | DKK |
| Estonia | 35,000 | EUR |
| Finland | 35,000 | EUR |
| France | 35,000 | EUR |
| Germany | 100,000 | EUR |
| Greece | 35,000 | EUR |
| Hungary | 8,800,000 | HUF |
| Ireland | 35,000 | EUR |
| Italy | 35,000 | EUR |
| Latvia | 35,000 | EUR |
| Lithuania | 35,000 | EUR |
| Luxemburg | 100,000 | EUR |
| Malta | 35,000 | EUR |
| Netherlands | 100,000 | EUR |
| Poland | 160,000 | PLN |
| Portugal | 35,000 | EUR |
| Romania | 118,000 | RON |
| Slovakia | 35,000 | EUR |
| Slovenia | 35,000 | EUR |
| Spain | 35,000 | EUR |
| Sweden | 320,000 | SEK |
| United Kingdom | 70,000 | GBP |
Each member country has its own schedule. The registration process for a VAT number varies from 6 to 8 weeks.
The amazon pan-European FBA is a program that includes the following countries: Germany, United Kingdom, France, Spain, Italy, Poland and Czech Republic. If you join this program, the products are automatically moved from Amazon to the 7 countries mentioned above. Before activating pan-European you need to be aware that to use a warehouse in another member country you need to be in possession of a VAT number, so if you adhere to this program the VAT number is mandatory.
| Country | Country Code | Super Reduced Rate (%) | Reduced Rate (%) | Standard Rate (%) |
|---|---|---|---|---|
| Austria | AT | - | 10 / 13 | 20 |
| Belgium | BE | - | 6 / 12 | 21 |
| Bulgaria | BG | - | 9 | 20 |
| Croatia | HR | - | 5 / 13 | 25 |
| Cyprus | CY | - | 5 / 9 | 19 |
| Czech Republic | CZ | - | 10 / 15 | 21 |
| Denmark | DK | - | - | 25 |
| Estonia | EE | - | 9 | 20 |
| Finland | FI | - | 10 / 14 | 24 |
| France | FR | 2,1 | 5,5 / 10 | 20 |
| Germany | DE | - | 7 | 19 |
| Greece | GR | - | 6 / 13 | 24 |
| Hungary | HU | - | 5 / 18 | 27 |
| Ireland | IE | 4,8 | 9 / 13,5 | 23 |
| Italy | IT | 4 | 5 / 10 | 22 |
| Latvia | LV | - | 12 | 21 |
| Lithuania | LT | - | 5 / 9 | 21 |
| Luxemburg | LU | 3 | 8 | 17 |
| Malta | MT | - | 5 / 7 | 18 |
| Netherlands | NL | - | 6 | 21 |
| Poland | PL | - | 5 / 8 | 23 |
| Portugal | PT | - | 6 / 13 | 23 |
| Romania | RO | - | 5 / 9 | 19 |
| Slovakia | SK | - | 10 | 20 |
| Slovenia | SI | - | 9,5 | 22 |
| Spain | ES | 4 | 10 | 21 |
| Sweden | SE | - | 6 / 12 | 25 |
| United Kingdom | UK | - | 5 | 20 |
* Zero rates are not included above.