EU 10.000€ Threshold

Stellar

From July 1st all EU business that sell more than 10.000€ to all the EU states must charge the VAT % of the customer country.

https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en

The existing thresholds for distance sales of goods within the EU will be abolished and replaced by a new EU-wide threshold of EUR 10 000. Below this EUR 10 000 threshold, the supplies of TBE (telecommunications, broadcasting and electronic) services and distance sales of goods within the EU may remain subject to VAT in the Member State where the taxable person is established.

Will BO offer better TAX settings handling or we will need to have 1 country with Profile Type Remove, and then add 27 more TAX profiles with Profile Type Add?

@Lawrence

Lawrence

We don’t have any plans to change how the tax profiles work in relation to distance selling thresholds

NelisSolis

@lawrence: how will BrickOwl facilitate the new EU VAT-system? With the new system, there are different VAT-rules for companies that have total non-domestic EU sales (across all platforms they sell on like BrickOwl, Bricklink, Ebay and others) below €10.000 a year and those who have total non-domestic EU sales above €10.000 a year.

If I stay below that €10k a year, I should charge VAT like I do now, the 21% Dutch VAT to all EU customers. If I go above €10k a year (not only BO, but for my total business) I should charge every customer the VAT of their own country: Luxembourg 17%, Sweden 25%, etc.

Can BrickOwl have a setting for sellers where they can select:
a. Non VAT-registered company
b. VAT-registered company with domestic VAT for all EU sales
c. VAT-registered company with VAT % of the country of the customer.

They can than select the option that matches their own situation on this issue. And in that way it should also be possible to switch from b to c for example if the go over the €10k a year.

Lawrence

You would likely need to create separate tax profiles. This isn’t something we plan to automate, as there are a lot of variables as to how things should be setup.

NelisSolis

Ok, so if I don't change anything, BrickOwl will calculate the VAT on EU-sales the same as it does today (for me: 21% Dutch VAT)?

Lawrence

We don’t have any inbuilt tax profiles (except for import taxes) so the tax will be calculated based on whatever tax profiles you have setup