Our free automated solution helps businesses track their distance selling thresholds and even apply the right tax rates depending on the customer’s location.
Last updated: 2021-11-22
In 2015 the Organisation of Economic Cooperation and Development (OECD) published updated international VAT guidelines which endorsed many countries to implement new rules of taxing cross-border remote sales based on destination principle, meaning B2C transactions be taxed in the country in which the customer is established if particular distance selling thresholds are exceeded in that country. Remote sales refer to all commercial transactions conducted online, including sale of goods and services.
If You are selling B2C digital goods and services in Europe, You must register for VAT in a MOSS system once Your distance selling threshold exceeds a threshold of 10 000 EUR in any EU member state.
If You are selling B2C other goods and/or services in Europe, You must register for VAT once Your distance selling threshold exceeds 35 000 EUR – 100 000 EUR depending on a regulations of a particular EU member state.
If You are selling digital goods and services in other countries than EU, You must register for VAT/Sales Tax once Your distance selling threshold exceeds a particular amount depending on a regulations of a particular country, which can be found on our Thresholds Map.
There are a few different forms that businesses should be aware of and keep records of all sales over a calendar year. If a company is selling above the distance selling thresholds in one or more countries via these methods, then they must register for VAT:
Tracking Your cross-border B2C sales and checking whether it exceeds distance selling thresholds in different countries is a demanding job. Our automated solution can help you do it quickly and easily.
Distance selling involves sales and purchases done via online mail orders services and includes both physical and digital goods & services. This particularly applies to products that cross EU country borders to reach the buyer.
Usually, one must register for VAT when they open a business and/or store their products in a European warehouse. This is also necessary when the annual distance selling thresholds are exceeded in a specific EU country.
Every EU country has an individual threshold limit, which ranges from 35,000 € to 100,000 € per calendar year. Once it is reached, the seller must get an additional VAT number in that specific country where the goods are being imported or held. There are also certain rules and regulations called Distance Selling Regulations (DSRs) that businesses should be aware of and comply accordingly. Sellers have to provide customers with:
There are exceptions when it comes to B2C and B2B. With B2C, not selling above the 10,000 € limit within one calendar year means that local VAT rates apply to the sales. When the distance selling thresholds are exceeded then the VAT rate of the destination country is charged. This limit changes which VAT rates are applied but this can easily be tracked with our automated systems. With B2B, it is quite simple as these thresholds don’t apply to these sales. It also doesn’t apply to such excisable goods as tobacco, alcohol, and petrol.
While these regulations are meant to protect the consumers, the thresholds are designed to encourage companies to trade across Europe while also reducing the administrative burden of doing so. If a business is selling below the distance selling thresholds, they don’t need to register for VAT.
Country | VAT/GST rate | Threshold | Filing frequency | Implementation for non-residents | B2C/B2B | Non-residents registration required |
European Union (27 member states) | 17% to 27% depending on country | None (EUR 10,000 for EU companies, none for non-EU companies) | Quarterly | Jan 2015 (MOSS reforms) and July 2021 (OSS reforms) | B2C | Yes |
Albania | 20% | None | Monthly | January 1, 2015 | B2C | Yes |
Algeria | 9% | None | Monthly | December 20, 2019 | B2C | No |
Afghanistan | 10% | AFN 150 million | Monthly/ Quarterly | December 21, 2021 | ||
Angola | 14% | None | Monthly | October, 2019 | B2C/B2B | Yes |
Andorra | 4.5% | EUR 40,000 | Monthly | January 1, 2013 | B2C | Yes |
Argentina | 21% | None (PSP-model: collection and remittance of VAT is executed by the customer’s payment provider) | Monthly | B2C | ||
Armenia | 20% | AMD 115million | Quarterly | October 1, 2021 | B2C | No |
Australia | 10% | AU$ 75,000 | Quarterly | July 1, 2017 | B2C | Yes |
Azerbaijan | 18% | AZN 200,000 | – | January 1, 2017 | B2C | No |
Bahamas | 12% | BSD 100,000 | Depends on turnover | January 1, 2015 | B2C | Yes |
Bahrain | 10% | BD 37,500 | Quarterly | January 1, 2022 | B2C | Yes |
Bangladesh | 15% | BDT 30 million | Monthly | July 1, 2019 | B2C | Yes |
Barbados | 17.5% | None | Quarterly | December 1, 2019 | B2C | Yes |
Belarus | 20% | None | Quarterly | January 1, 2018 | B2C | Yes |
Brazil | Impossition of Imposto sobre Circulação de Mercadorias e Serviços de Tranporte Intermunicipal, Interestadual e de Comunicação is postponed. | |||||
Bhutan | 7% | BTN 5 million | Monthly | July 1, 2021 | B2C | Yes |
Cameroon | 19.5% | XAF 50 million | Monthly | January, 2020 | B2B/B2C | Yes |
Canada, Federal tax | 5% | CA$ 30,000 | Quarterly | July 1, 2021 | B2C | Yes |
Canada, British Columbia | 7% | CA$ 10,000 | Depends on turnover | April, 2021 | B2C | Yes |
Canada, Québec | 9.976% | CA$ 30,000 | Depends on turnover | January 1, 2019 | B2C | Yes |
Canada, Saskatchewan | 6% | Nil for non-residents | Depends on turnover | January 1, 2019 | B2C | Yes |
Chile | 19% | None | Monthly | June 1, 2020 | B2B/B2C | Yes |
Colombia | 19% | None | Bimonthly | January 1, 2019 | B2C | Yes |
Costa Rica | 13% | None | Monthly | August 1, 2020 | B2C | Not yet. Service providers in scope listed |
Ecuador | 12% | None | Monthly | September 16, 2020 | B2C | Not mandatory |
Egypt | 14% | EGP 500,000 | Monthly | September 1, 2016 | B2C | No |
Fiji | 9% | FJD$ 300,000 | Monthly/Yearly | 2020 | B2C | Yes |
Ghana | 12.5% | GHS 200,000 | Monthly | January 1, 2014 | B2B/B2C | Yes |
Iceland | 24% | ISK 2 million | Bimonthly | November 1, 2011 | B2C | Yes |
India | 18% | None | Monthly | July 1, 2017 | B2C | Yes |
Indonesia | 11% | IDR 600,000,000 | Quarterly | April 1, 2022 | B2B/B2C | Not yet |
Japan | 10% | JPY 10 million | Annual return/quarterly payments | October 1, 2015 | B2B/B2C | Yes |
Kazakhstan | 12% | None | Quarterly | January 1, 2021 | B2C | Yes |
Kenya | 16% | KES 5 million | Monthly | March 10, 2021 | B2C | Yes |
Kosovo | 18% | None | Monthly | September 1, 2020 | B2C | Yes |
Kuwait | VAT was introduced but not applicable yet | |||||
Malaysia | 6% | MYR 500,000 | Quarterly | January 1, 2020 | B2B/B2C | Yes |
Mauritius | 15% | – | Quarterly/Monthly | TBC | B2B/B2C | Yes |
Mexico | 16% | None | Monthly | June 1, 2020 | B2B/B2C | Yes |
Moldova | 20% | None | Quarterly | April 1, 2020 | B2C | Yes |
Morocco | 20% | None | Monthly | – | B2C | Yes |
New Zealand | 15% | NZ$ 60,000 | Quarterly | October 1, 2016 | B2C | Yes |
Nigeria | 7.5% | None | Monthly | February 3, 2020 | B2C | Yes |
Norway | 25% | NOK 50,000 | Quarterly | July 1, 2011 | B2C | Yes |
Oman | 5% | OMR 35,000 | Quarterly | April, 2021 | B2C | Yes |
Paraguay | 10% | None | – | January 1, 2021 | B2C | No |
Philippines | 12% | PHP 3 million | Monthly/Quarterly | January 1, 2021 | B2C | Yes |
Peru | 18% | None | Monthly | 2021 | B2B/B2C | Yes |
Russia | 20% | None | Quarterly | January 1, 2017 | B2B/B2C | Yes |
Saudi Arabia | 15% | None | Quarterly | July 1, 2020 | B2C | Yes |
Serbia | 20% | None | Monthly | April 1, 2017 | B2B/B2C | Yes |
South Africa | 15% | ZAR 1 million | Bimonthly | July 1, 2014 | B2B/B2C | Yes |
South Korea | 10% | None | Quarterly | July 1, 2015 | B2C | Yes |
Singapore | 7% | Annual global turnover exceeding SGD$100,000 | January 1, 2020 | B2C | Yes | |
Switzerland | 7.7% | CHF 100,000 on global income | Quarterly | January 1, 2010 | B2C, B2B also if registered | Yes |
Taiwan | 5% | NTD 480,000 | Bimonthly | July 1, 2017 | B2C | Yes |
Tajikistan | 18% | – | Quarterly | January, 2021 | B2C | Yes |
Tanzania | 18% | TZS 100 million | Monthly | July, 2015 | B2B/B2C | No |
Thailand | 7% | BAHT 1,8 million | Quarterly | September 1, 2021 | B2C | Yes |
Tunisia | 19% | None | – | January 1, 2018 | B2C | No |
Turkey | 18% | None | Monthly | January 1, 2018 | B2C (Sales list for B2B trasactions) | Yes |
Uganda | 18% | None | – | January, 2020 | B2C | Yes |
Ukraine | 20% | UAH 1 million | Quarterly | January, 2022 | B2C/B2B | Yes |
United States | Up to 10% | Varies by state | – | 2018+ | – | – |
United Arab Emirates (UAE) | 5% | None | Quarterly | January 1, 2018 | B2C | Yes |
United Kingdom | 20% | – | Quarterly | January 1, 2021 | B2C | Yes |
Uruguay | 22% | None | Monthly | January 1, 2018 | B2C | Yes |
Uzbekistan | 15% | None | Monthly | January 1, 2020 | B2C | Yes |
Vietnam | 10% | PSP-model: collection and remittance of VAT is executed by the customer’s payment provider | Monthly | |||
Zimbabwe | 14.5% | None | – | January, 2020 | – | Yes |
Canada
Turnover threshold - 30,000 CADChile
Turnover threshold - n/aArgentina
Turnover threshold - n/aAustria
Turnover threshold - 10,000 EUR (common EU threshold)Australia
Turnover threshold - 75,000 AUDBahrain
Turnover threshold - n/aBelarus
Turnover threshold - nillBelgium
Turnover threshold - 10,000 EUR (common EU) threshold)Standard VAT rate - 21%Brazil
Turnover threshold - n/aBulgaria
Turnover threshold - 10,000 EUR (common EU)China
Turnover threshold - 5,000,000 CNYCyprus
Turnover threshold - 10,000 EUR (common EU)Colombia
Turnover threshold - n/aCroatia
Turnover threshold - 10,000 EUR (common EU)Czech Republic
Turnover threshold - 10,000 EUR (common EU)Denmark
Turnover threshold - 10,000 EUR (common EU)Estonia
Turnover threshold - 10,000 EUR (common EU)Finland
Turnover threshold - 10,000 EUR (common EU)France
Turnover threshold - 10,000 EUR (common EU)Germany
Turnover threshold - 10,000 EUR (common EU)Greece
Turnover threshold - 10,000 EUR (common EU)Hungary
Turnover threshold - 10,000 EUR (common EU)Iceland
Turnover threshold - 2,000,000 ISKIndia
Turnover threshold - n/aIreland
Turnover threshold - 10,000 EUR (common EU)Italy
Turnover threshold - 10,000 EUR (common EU)Japan
Turnover threshold - 10,000,000 JPYLatvia
Turnover threshold - 10,000 EUR (common EU)Lithuania
Turnover threshold - 10,000 EUR (common EU)Luxembourg
Turnover threshold - 10,000 EUR (common EU)Malta
Turnover threshold - 10,000 EUR (common EU)Netherlands
Turnover threshold - 10,000 EUR (common EU)New Zeland
Turnover threshold - 60,000 NZDNorway
Turnover threshold - 50,000 NOKPoland
Turnover threshold - 10,000 EUR (common EU)Portugal
Turnover threshold - 10,000 EUR (common EU)Romania
Turnover threshold - 10,000 EUR (common EU)Russia
Turnover threshold - n/aSaudi Arabia
Turnover threshold - n/aSerbia
Turnover threshold - 8,000,000 RSDSlovakia
Turnover threshold - 10,000 EUR (common EU)Slovenia
Turnover threshold - 10,000 EUR (common EU)South Africa
Turnover threshold - 1,000,000 ZARSouth Korea
Turnover threshold - n/aSpain
Turnover threshold - 10,000 EUR (common EU)Sweden
Turnover threshold - 10,000 EUR (common EU)Switzerland
Turnover threshold - 100,000 CHFTurkey
Turnover threshold - n/aUnited Arab Emirates
Turnover threshold - n/aUruguay
Turnover threshold - n/aAlabama
Economic Nexus - Revenue Rule 810-6-2-.90.03Alaska
No Economic NexusArkansas
Economic Nexus - State Bill 576California
Economic Nexus - NR-18-593Colorado
Economic Nexus - Emergency Regulation 39-26-105Connecticut
Economic Nexus - State Bill 417Delaware
No Economic NexusFlorida
No Economic NexusGeorgia
Economic Nexus - House Bill 61Hawaii
Economic Nexus - State Bill 2514Idaho
Economic Nexus - House Bill 259Illinois
Economic Nexus - Illinois Public Act (P.A.) 100-587Indiana
Economic Nexus - House Bill 1129Iowa
Economic Nexus - SF 2417Kansas
No Economic NexusKentucky
Economic Nexus - House Bill 487Louisiana
Economic Nexus - House Bill 17Maine
Economic Nexus - Statute Title 36 M.R.S.A. section1951-BMaryland
Economic Nexus - MD Emergency regulations (03.06.01.33)Massachusetts
Software Nexus - Reg. 830 CMR 64H.1.17Michigan
Economic Nexus - Revenue Administrative Bulletin 2018-16Minnesota
Economic Nexus - MN Statute 297A.66, Sub 3(b)Missouri
No Economic NexusMississippi
Economic Nexus - MS Rule 35.IV.3.09Montana
No Economic NexusNebraska
Economic Nexus - Neb. Rev. Stat. § 77-2701.13Nevada
Economic Nexus - Nevada Remote Sellers Regulation R189-18New Hampshire
No Economic NexusNew York
Economic Nexus - Important Notice N-19-1New Jersey
Economic Nexus - P.L. 2018, c. 132New Mexico
Economic Nexus - House Bill 6United Kingdom
Non-local distance selling threshold - 0 GBPNorth Carolina
Economic Nexus - Directive SD-18-6North Dakota
Economic Nexus - Senate Bill 2191Oregon
No Economic NexusPennsylvania
Economic Nexus - Sales and use tax bulletin 2019-01Rhode Island
Economic Nexus - House Bill H5278South Carolina
Economic Nexus - Rule 18-14South Dakota
Economic Nexus - Codified Law 10-64Tennessee
Economic Nexus - House Bill 667Texas
Economic Nexus - Rule 3.286Utah
Economic Nexus - State Bill 2001Vermont
Economic Nexus -House Bill 873Virginia
Economic Nexus - State Bill 1083Washington
Economic Nexus - EHB 2163, Chapter 28, Laws of 2017West Virginia
Economic Nexus - Administrative Notice 2018-18Wyoming
Economic Nexus - House Bill 019Wisconsin
Economic Nexus - Senate Bill 883Ukraine
Moldova
Albania
Ghana
Kenya
Bangladesh
Malaysia
Uzbekistan
Cameroon
Uganda
Mexico
Svalbard
Armenia
Azerbaijan
Taiwan