Preliminary Remarks
Since July 2021, an EU-wide delivery threshold of €10,000 net per calendar year has applied to deliveries of physical products to private individuals (B2C). As soon as the delivery threshold is exceeded, the company is obliged to register for the VAT rate in the country of destination and pay the corresponding tax there.
The sale of digital products is excluded from the delivery threshold. In this case, the tax rate of the country of use always applies in the B2C sector.
Example: If a German company delivers physical products to private individuals (B2C) to France and Austria and the total net turnover does not exceed €10,000, the German tax rate is paid. As soon as the total turnover exceeds €10,000 (France €6,000 and Austria €4,001), the French and Austrian tax must be paid accordingly.
The company can register for the OSS procedure so that it does not have to register in each country separately. The OSS procedure enables registered companies to centrally submit transactions that are subject to the special regulation to the Federal Central Tax Office in a tax return from July 1, 2021.
More information on the OSS procedure can be found on the website of the Federal Central Tax Office.
If you have any questions, consult the tax office .
Delivery Thresholds
If the company exceeds the EU-wide delivery threshold, EU must be selected. If the threshold values of third countries are exceeded, these must also be selected here.
Note: The country selection must be maintained independently at in the Merchant Backend. As soon as the delivery threshold is exceeded, the EU or the corresponding third country must be added. As soon as the delivery threshold is undershot again, the EU or the corresponding third country must be removed.
