The basic rule
You sell to a business established in another Member State and it gives you a valid VAT number: you invoice excluding VAT, and it declares the VAT in its own country.
The check that protects you
An invalid number makes you liable for the VAT you did not charge. The check is done on the European Commission’s VIES service, and the proof must be kept.
- Check before the first invoice, then periodically.
- Keep the date and the result of the check.
- Keep proof that the goods were transported out of France.
Selling to consumers
The rules differ: above an annual threshold of distance sales across the whole Union, you must apply the destination country’s rate. The One-Stop Shop then saves you from registering in each country.
€10,000Annual threshold of distance sales to the EU above which the customer’s country VAT applies.
The extra returns
Flow
Sale of goods to the EU
- Return
- EC sales list and statistical survey depending on threshold
Flow
Services to the EU
- Return
- European services declaration
Flow
Distance sales to consumers
- Return
- One-Stop Shop (OSS)
| Flow | Return |
|---|---|
| Sale of goods to the EU | EC sales list and statistical survey depending on threshold |
| Services to the EU | European services declaration |
| Distance sales to consumers | One-Stop Shop (OSS) |