I've heard that sales of digital goods into the EU will need to have VAT charged at the customers country VAT rate from 1 Jan 2015.

The seller will then need to either file a VAT return in each EU country, or register for MOSS (an aggregation scheme by HMRC) and make a singe VAT return.

Question: Does this apply to all small businesses. Is there no lower threshold? If I sell $10 of goods in a country do I have to go through that whole process just for $10..?

Seems odd to me that there doesn't seem to be a lower threshold for VAT registration and charging, as there is under the current rules ending 31 Dec 2014.

I'm based in the UK.

1 Answer 1


Been digging through all the EU VAT directives and have called HMRC as well..

There does not seem to be any lower threshhold for charging VAT into the EU. If you sell £10 of goods/services you have to charge VAT and file a VAT return. Your options are:

1) Register for MOSS and file a single VAT return in your home country for all countries. In the UK this means that you also have to be VAT registered and have to charge VAT locally as well - even if you are below the UK threshold.

2) Register and file a VAT return in every EU country you sell into.

You also have to apply the correct VAT rate for each country (typically 15% to 27%), and you have to keep at least two pieces of evidence for the customer location. eg. billing address, IP address, etc.

  • 2
    Option 3: Choose not to sell into the EU and stay VAT non-registered if you are below the local threshold. Nov 24, 2014 at 11:02

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