B2C (business-to-consumer) supplies
B2C (business-to-consumer) supplies – refers to supplies to final consumers and covers transactions listed in section 1.2 of the Explanatory Notes. A consumer can also be referred to as a customer in the Explanatory Note.
Goods packed together and dispatched simultaneously by the same supplier or underlying supplier to the same consignee and covered by the same transport contract.
Is the taxable person who is deemed to receive the goods from the underlying supplier and supply them to the final consumer. A deemed supplier has the same rights and obligations for VAT purposes as the supplier. See section 2.1 of Explanatory Notes.
Distance sales of goods
Refers to distance sales of goods within the EU and distance sales of goods imported from third territories or third countries within the EU, which are defined in Article 14(4) of the VAT Directive.
Should be understood as a broad concept which allows two independent systems or the system and the end user to communicate with the help of a device or programme. An electronic interface could encompass a website, portal, gateway, marketplace, application program interface (API), etc.
EU Member States
Are the countries within the EU where these VAT rules apply. These are Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
Are products subject to excise duties, such as alcohol, tobacco and energy.
Are services provided to suppliers of goods and consisting of storing goods in a warehouse, preparing orders and shipping the goods from the warehouse.
Is a person established in the EU appointed by a supplier or a deemed supplier as the person liable for the payment of the VAT and responsible for fulfilling the obligations laid down in the import One Stop Shop scheme.
(a) For commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not indicated separately on the invoice, and excluding any other taxes and charges as ascertainable by the customs authorities from any relevant document(s).
(b) For goods of a non-commercial nature: the price which would have been paid for the goods themselves if they were sold for export to the customs territory of the Union.
Low value goods
Goods in consignments whose intrinsic value at import does not exceed EU 150 (expect products subect to excise duties).
Special schemes cover the Non-Union Scheme, the Union Scheme and the Import Scheme.
- The ‘Non-Union Scheme’ means the special scheme for services supplied by taxable persons not established within the Community. See more in Chapter 3 of the Explanatory Notes;
- The ‘Union Scheme’ means the special scheme for distance sales of goods within the EU, for supplies of goods within a Member State facilitated by electronic interfaces and for services supplied by taxable persons established within the Community but not in the Member State of consumption. See more in Chapter 3 of the Explanatory Notes;
- The ‘Import Scheme’ means the special scheme for distance sales of goods imported from third territories or third countries. See more in Chapter 4 of the Explanatory Notes.
Is the taxable person selling goods or services within the EU or making distance sales of goods imported from third territories or third countries directly to customers where the supply was not facilitated by an electronic interface.
Is a person established in the EU appointed by a supplier as the person liable for the payment of VAT and responsible for fulfilling the VAT obligations. The details regarding the tax representative are dealt with by national rules of Member States.
Taxable person not established within the Community
Means a taxable person who has not established his business in the territory of the EU and who has no fixed establishment there.
Third territories and third countries
‘Third Territories’ are those referred to in Article 6 of the VAT Directive and ‘third country’ means any state or territory to which the Treaty on the Functioning of the European Union is not applicable (see Article 5 of the VAT Directive).
Is the taxable person supplying goods or making distance sales of goods imported from third territories or third countries through an electronic interface. See section 2.1 of the Explanatory Notes.