Rules for VAT on sales to private consumers in the EU
From 1 July 2021, the VAT rules on sales to private consumers in the EU changed. This means, among other things, that a new common EU limit of EUR 10,000 per year was introduced. The limit covers the total sale of a business to other EU countries beside the sales in country where the business is domiciled - Denmark, for example. The new limit for all of the EU is much lower that former limits that only applied to a single country.
The limit means that businesses in the EU have to pay VAT in the country of consumption when the business total distance selling of goods and electronically provided services, including telecommunications services and radio and tv broadcasting services, to other EU countries in total exceeds EUR 10,000 per year. This may have a great impact on your business when it charges, declares and pays VAT. Using VAT One Stop Shop you may register your business for sale to private consumers in the EU in one EU country and declare and pay VAT in that particular country.
Please make sure that your business is ready to mange the new set of rules which you find more about below.