VAT on e-commerce in the EU

Do you supply goods in the EU to customers who do not declare VAT? If so, as of July 1, 2021, you must usually declare that VAT in the EU country where you deliver. For example, if you sell products with your webshop to individuals in Germany.

For these supplies, you can start using the so-called one-stop shop system. Also if you deliver services in the EU.

Nothing will change for products you deliver in the Netherlands.

What is your situation?

Do you sell goods in the EU to customers who do not file a VAT return? If so, you must declare the VAT in the EU country to which the goods are destined, starting from 1 July 2021. For example, if you sell products with your webshop to individuals in Germany. This can also be done in a simplified way. Central. With the “Union scheme” in the one-stop shop.

Do you need to import your goods into the EU first? Then use the ‘Import regulation’. Look at the situation ‘I am a Dutch entrepreneur and supply goods from outside the EU’.

Please note!

Are you making ‘distance sales’ with a turnover of up to €10,000 per year? If so, you pay the VAT in the Netherlands – in the usual way. Under ‘How to use the Union scheme’ you can see what distance selling is.

Do you not only sell goods but also provide digital services to private individuals? If so, include the turnover from these services when calculating the maximum of €10,000. Do not calculate the maximum of € 10,000 for 2021 over the entire year, but as of July 1, 2021.

Use the union scheme? You can register as of April 2021

You must register if you want to use the Union scheme. Registration can be done from 1 April 2021 through Mijn Belastingdienst Zakelijk.

You are not obliged to use the Union scheme. Do you not use the Union scheme, or can you not use it – because you do not meet the conditions? If so, you must declare the VAT in each country in which you supply your products. Contact the tax authorities of those countries for more information.

How to use the Union scheme

You may use the ‘Union scheme’ for so-called distance selling. This means that you must meet these conditions:

  • You supply goods that are already in the EU – to a customer in another EU country.
  • You are supplying directly to customers who do not file a VAT return. These are all private individuals. But for example also entrepreneurs who do not have to declare VAT.
  • You cannot use this scheme for margin goods and (nearly) new means of transport, such as cars and motorcycles. And also not for ‘assembly deliveries’, such as sun blinds.
  • You take care of the shipment of your products yourself.

With the Union scheme you report the VAT for all these supplies every quarter. And you pay this in 1 time. Reclaiming input tax is not possible with the Union scheme. For this, see Reclaiming VAT from other EU countries.

You declare supplies to Dutch customers in the usual way in your Dutch VAT return.

Example

You are established in the Netherlands and supply your products to private individuals in the Netherlands, Belgium and Spain.

As a result of a delivery to a private individual in Spain, the turnover generated outside the Netherlands for customers who do not submit a VAT return, exceeds € 10,000. For this delivery you must declare and pay the VAT in Spain. This also applies to all subsequent supplies to private individuals in Spain and Belgium. You can use the Union scheme for these supplies: you then pay the foreign VAT in one go. You can continue to declare your supplies in the Netherlands in your Dutch VAT return.

Do you sell goods from outside the EU to customers who do not file a VAT return? If so, you must declare that VAT in the EU country where the goods are going, as from 1 July 2021. For example, if you sell products from China directly to individuals in Germany via your webshop. This can also be done in a simplified way. Central. With the ‘Import scheme’ in the one-stop shop.

As of July 1, 2021, the VAT exemption of €22 for shipments you import from outside the EU will expire.

Are your goods already in the EU and do you not need to import them first? Then use the ‘Union scheme’. Look at the situation ‘I am a Dutch entrepreneur and I deliver goods’.

Use import scheme? Registration is possible as of April 2021

You must register if you want to use the import scheme. Registration is possible from 1 April 2021 via Mijn Belastingdienst Zakelijk.

How to use the Import regulation

You may use the Importation scheme if it concerns so-called distance sales. This means that you must meet these conditions:

  • You supply goods from outside the EU – to a customer in another EU country.
  • You are supplying directly to customers who do not file a VAT return. These are all private individuals. But for example also entrepreneurs who do not have to declare VAT.
  • The Import Regulations are for shipments of up to € 150. Do the invoices include insurance and shipping costs? If so, they do not count. A shipment can consist of a package of various goods. You must use 1 transport document for a shipment, such as an airway bill.
  • You cannot use this arrangement for ‘excisable goods’, such as beer, wine and tobacco products.
  • You must take care of the shipment of your products yourself.

With the Import regulation you report every month the VAT for all these deliveries. And pay it in 1 time. If you use the import regulation, you do not pay VAT on import.

I cannot use the import regulation

Are you not allowed to use the import regulation – for example, because the value of your shipment is higher than € 150? Then you will pay the VAT in the country where you are importing your shipment.

Example

You use your webshop to deliver a product from China directly to Germany, but you import your product into France. You then pay VAT for import into France. You can reclaim this VAT. You then declare the VAT in Germany – the country where you supply your product.

I do not want to use the import regulation

Do you not want to use the import regulation? Then you pay the VAT in the country to which you are sending your shipment.

Example

You use your webshop to deliver a product from China directly to Germany, via France – you import your product into Germany. Then you pay VAT for the import into Germany. Then you declare the VAT again, in Germany – the country where you deliver your product. In that declaration you can reclaim the VAT you paid on import.

Do you deliver services to private individuals and therefore have to pay VAT in another EU country? If so, you can declare the VAT in a simplified manner as from 1 July 2021. Central. Via the one-stop-shop system. You declare this VAT every quarter via the one-stop-shop system. You pay this VAT in 1 time. We send your declaration and payment to the tax authorities of those EU countries. This is the so-called Union system.

The rules for determining the place where the service is taxed remain the same.

Register

You must register if you want to use the one-stop shop for VAT. Registration is possible from 1 April 2021 through Mijn Belastingdienst Zakelijk.

Digital services

An exception applies to digital services. Is your turnover from digital services to private individuals within the EU € 10,000 or less? If so, the service is taxed in the Netherlands and you pay VAT here.

Do you also supply goods to private individuals in the EU – and do you arrange the shipment of these goods yourself? If so, also include the turnover of these goods in the calculation of the €10,000 maximum. Do not calculate the maximum of € 10,000 for 2021 over the entire year, but as from 1 July 2021.

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