New database for VAT rates for deliveries to "private individuals" within the EU due to the elimination of the delivery threshold from 1st July 2021

If goods are delivered from Austria to another EU member state to a non-entrepreneur by an Austrian entrepreneur or on his behalf, or if an Austrian supplier is indirectly involved in such transport or dispatch, this delivery applies for VAT purposes from July 1, 2021 as executed in the EU country in which the delivery ends. The previously known delivery threshold will no longer apply from July 1, 2021. For Austrian entrepreneurs, there may be increased registration obligations abroad and the foreign invoice issuing regulations may have to be applied. In order to be able to meet these obligations more easily, the European Commission recently published a database for querying VAT rates in the EU member states.

From July 1, 2021, an Austrian entrepreneur no longer has to observe the relevant delivery thresholds in other Member States in the case of "mail order" as before, but in particular check whether the total amount of the charges for intra-community deliveries is more than EUR 10,000 in a calendar year or not. If this limit is exceeded, registration abroad and compliance with the foreign invoicing regulations of the respective destination country are required. Only if this limit is not exceeded, the Austrian VAT regulations remain applicable (“exception for micro-entrepreneurs”).

However, so that an entrepreneur does not have to register in each individual member state, the MOSS (EU scheme) is also being expanded to include intra-community mail order. For certain services, this offers the option of registering for VAT purposes only in one EU member state and thereby declaring all sales falling under the MOSS regulation in the member state of identification as well as paying the corresponding VAT without having to register and pay extra in each member state, in which such services are provided.

Since the country of destination is the place of sales for deliveries from Austrian entrepreneurs to non-entrepreneurs or also to so-called threshold buyers (such as small entrepreneurs or flat-rate farmers) within the EU, it will be necessary for entrepreneurs to have access to the current VAT rates of the member states in which they deliver the items to a private customer. The European Commission therefore provides a database in which the VAT rates for deliveries and other services in the respective EU member states are continuously updated. Access to the database is free. The database can be accessed via the following link:

https://ec.europa.eu/taxation_customs/tedb/taxSearch.html

December 10th 2020 | LBG | Antje Ploberger

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