VAT: If the distance selling threshold in an EU recipient country is exceeded, the Austrian supplier owes foreign VAT

LBG-Summary: Due to the free movements of goods within the EU, the delivery of goods to foreign customers is generally easy and non-bureaucratic. However, as an entrepreneur you have to pay special attention to the respective distance selling thresholds in the EU which come into effect when delivering notably to private individuals, small enterprises on behalf of VAT rules or flat-rate farmers. If the Austrian supplier exceeds the distance selling threshold in a certain EU country (for example Germany € 100.000, Italy € 35.000, France € 35.000), the VAT liability is shifted from Austria to that particular EU recipient country. Note: If goods are dispatched or transported from an EU-Member State to Austria by a foreign supplier or on behalf of a foreign supplier exceeding the Austrian distance selling threshold (€ 35.000), the VAT liability is shifted to Austria and the foreign supplier owes Austrian VAT.

Contact & Advise: Our experts at LBG will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.