EU Delivery Thresholds
What are delivery thresholds?
Delivery thresholds represent limits applied when sellers deliver products across EU country borders to private customers. Once exceeded, sellers must pay sales tax (VAT) in the destination country rather than their origin country. This regulation applies to sellers using either the EFN (European Fulfillment Network) or PAN-EU shipping services.
The mechanism works as follows: up to the threshold limit, sellers remit sales tax to their home country's tax office. Beyond that threshold, tax obligations transfer to the foreign country. Since different EU nations impose varying VAT rates, a seller's total tax burden may increase or decrease depending on their sales destinations.
Key European Delivery Thresholds
| Country | Threshold | |---------|-----------| | Germany | €100,000 | | England | €100,000 | | France | €35,000 | | Italy | €35,000 | | Netherlands | €100,000 | | Austria | €35,000 | | Spain | €35,000 |
All thresholds measure net annual revenue.
Austria holds particular importance for amazon.de sellers, as Austrian customers frequently purchase from the German marketplace.
Voluntarily Waiving Delivery Thresholds
Sellers may choose to voluntarily waive these thresholds when operating in countries with lower VAT rates. This strategy means paying the foreign tax from the first euro of revenue, potentially reducing overall tax costs.
Voluntary Waivers and PAN-EU Operations
Two distinct scenarios require consideration:
Situation #1: Storage and destination locations are identical—the customer resides in the same country where products are shipped. This presents no complications when participating in PAN-EU delivery with proper tax registration in the destination country. Sellers simply remit foreign VAT and include the respective VAT number on invoices.
Situation #2: Customer location differs from the storage/shipping location. For example, products stored in France shipped to Italian customers require tax payment in Italy, the destination country.