This guide explains the EU-wide €10,000 distance‑selling threshold for cross‑border B2C sales and how it is affected by multi‑country storage. It also covers the 2025 SME VAT exemption scheme and the implications for local VAT registration and OSS use when goods are stored in multiple EU countries.
The threshold is €10,000 per year (net, excluding VAT).
It stops applying when a business obtains a VAT number in another EU country, such as through storage of goods.
It allows certain EU‑established small businesses to apply for a VAT exemption across multiple Member States if strict conditions are met.
No, it does not remove the need for local VAT registrations where stock is stored or for OSS/local filings once destination‑based VAT rules apply.
It must register for VAT locally in each country where goods are stored and either use OSS in its home Member State or register for VAT in every destination country where it sells B2C.
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VatCalc · about 8 hours ago
CEN approved an updated EN 16931‑1 e‑invoicing standard on 13 February 2026, adding new mandatory fields for B2B transactions and aligning with the July 2030 Digital Reporting Requirements. The revision supports both B2B and B2G use, enabling ViDA users to comply without costly system rebuilds.
Darkopavic · 2 days ago
The European Union has approved a flat €3 customs duty on low‑value parcels valued below €150, effective 1 July 2026, as a temporary measure before broader customs reform in 2028. The rule applies by item type rather than per box and aims to curb unfair competition from direct‑to‑consumer imports, especially from China.
Bloomberg Tax · 2 days ago
The European General Court issued a preliminary ruling (Case No. T‑657/24) on 9 February 2026 clarifying that credit intermediaries are exempt from VAT only when they canvass and source customers for mortgage‑loan agreements and assist with preparatory work before agreements are concluded. A Portuguese credit intermediary’s commission‑based mortgage‑loan intermediation was challenged, and the court held that unless these conditions are met, the services are taxable.
VatCalc · 3 days ago
EU Council has approved a temporary flat €3 customs duty per item for low‑value e‑commerce imports (≤€150) from third countries, effective 1 July 2026 until July 2028. The levy targets non‑EU sellers registered under the Import One‑Stop Shop, covering about 93 % of parcels, and is separate from VAT. It will be replaced by the EU Customs Data Hub in 2028, after which standard customs tariffs will apply.
VATCalc · 4 days ago
The European Parliament’s ECON committee has released a draft report urging the removal of the long‑standing VAT exemption for financial and insurance services under Directive 2006/112/EC. The report highlights the distortions caused by the exemption, the proliferation of over 90 sector‑specific taxes across the EU, and calls for a coordinated framework that taxes identifiable fees, clarifies emerging services, and harmonises cost‑sharing mechanisms.
Bloomberg Tax · 4 days ago
A draft European Parliament report dated Feb. 4 calls for changes to the VAT exemption for the EU’s financial sector, arguing it is misaligned with today’s economic and technological realities. The report proposes coordinated EU‑wide taxation where feasible and minimum standards for temporary windfall taxation to align exceptional profits with long‑term public investment priorities. It was authored by German MEP Matthias Ecke.
