Are you aware of the new VAT rules on sales to private consumers in the EU?

22. April

On 1 July 2021, new VAT rules on sales to private individuals within the EU will enter into force. You will be affected by these changes if your company sells for more than EUR 10,000 in one calendar year to private individuals across the EU.

This threshold is the total amount of turnover, which means that you must register for VAT and collect local VAT in e.g. both Germany and Sweden if your sales in Germany amount to EUR 8,000 and your sales in Sweden amount to EUR 3,000 in a calendar year.

The new VAT rules, the so-called VAT One Stop Shop scheme, will be implemented to improve the EU's global competitiveness and to eliminate VAT fraud.

The One Stop Shop scheme covers the supply of goods made by an EU vendor supplying goods (including transportation) to private individuals’ residents in another EU country, e.g. when your company sells goods online through a webshop.

The administrative VAT burdens are a thing of the past

The scheme is created to make it easier for your company to report and pay VAT. You avoid having to register and settle VAT in several countries, as it will be possible for you to choose one country from which all reporting and settlement takes place.

You will have to pay VAT at the rate applicable in the country of supply, which is an advantage for Danish companies. Many Danish companies will therefore be free of the extra administrative burdens you have been accustomed to, and now only have to report and settle in one country.

Register your company now

The VAT One Stop Shop scheme will consist of several different special schemes, and you should register your company with the scheme that corresponds to your situation.

The EU scheme: A company domiciled in and outside the EU can use this scheme.

If your company is domiciled in the EU and sells goods to private consumers in other EU countries, you can use the EU scheme. This scheme will typically be relevant for Danish established companies.

If your company is domiciled outside the EU, you can also use this scheme. However, it requires that your company has a registered place of shipment in the EU, from where you sell to private individuals in other EU countries.

Import One Stop Shop (IOSS): A company that imports goods from third countries and sells them to private consumers in the EU can use this scheme.

If your company sells goods that do not exceed a value of EUR 150 per shipment, it will be possible for you to report and pay VAT monthly via the import scheme. The import scheme is a direct result of the abolition of the VAT exemption on goods under EUR 22, which enters into force on 1 July 2021.

When you choose to settle VAT on the value of the goods like this, you ensure that your goods are delivered directly to your customer without being stopped at customs. In this way, you can avoid potential worries and possible delivery delays.

In addition, this scheme also applies to companies that sell services.

Is your company not registered for the current One Stop Shop VAT scheme?

If your company is not registered under the current Mini One Stop Shop VAT scheme (supply of services), please note the following:

- You must deregister your business from VAT in the countries where you want to make use of the new VAT One Stop Shop scheme.
- You can register the company from 1 April 2021. The scheme will take effect from 1 July 2021.

Is your company registered for the current Mini One Stop shop scheme for trade with services?

If you already signed up for the Mini One Stop Shop VAT scheme, your company will automatically be transferred to the new scheme by 1 July 2021. 

Do you have questions about what the VAT One Stop Shop scheme will mean for your business?

If you need assistance with the new VAT One Stop Shop scheme, we are ready to guide you and your company. Contact your IntraVAT specialist today at or +45 7430 2360 - we are here to help you.