THE DISTANCE SELLING : PARTICULARITIES
The distance selling concerns selling a product that is directly delivered to the customer’s home (private customer or entity without a VAT number) without passing through a store distribution.
The distance selling must comply with the European VAT and Custom requirements.
However, some people who have exemption treatment (PRDB) as self-employed, can have an intracommunity VAT number, and would not depend on the distance selling system.
This distance selling system only concerns products (and not services), with the exception of petrol products, tobacco, alcohol and means of transport. Services such as e-learning, traduction, etc. which depend on electronic services are not concerned either.
Distance selling rules are clear
Companies practicing distance selling can sell to customers all over the European Union, applying their own national VAT, until a specific limit is reach in the country where customer resides. As an option, the seller may apply, without having reached the limit, the VAT of the customer’s country.
REGARDING INVOICING, THREE SITUATIONS ARE POSSIBLE :
You realize taxable sales in the country where you are based in. These sales are assimilated to domestic sale in your own country. Therefore, you have to make an invoice in accordance with your country’s taxation system on which both the amount without VAT and the local VAT will appear. Your obligations regarding the invoice, the declaration and the VAT payment are identical to those concerning operations realized on your national territory.
You realize taxable sales in your customer’s country which are not subject to VAT. In this case, you have to proceed to a tax identification of your company (getting an intracommunity VAT number) in the country where your customer is based. To do this, you have a possibility to get a tax agent. Finally, you will have to issue an invoice in accordance with the taxation law of the country where your company is registered, including references imposed by your state.
You dispash from a stock in an other member state, in this case, the tax is due from the first euro in this country.
Recently, ASD Group worked on the developpment of a distance selling firm, situated in South of France, and increased its profit of 500%. Learn more about this Success Story.