What are delivery thresholds?
These so-called delivery thresholds are limits that apply when a seller, for example on Amazon, delivers their products across country borders to private customers in other countries. Once the limit is exceeded, the seller has to pay the sales tax (VAT) in the country of destination. This is relevant for every seller who is registered in a European country and wants to sell their product in several European countries – therefore delivering across borders. The limits apply for using the EFN (European Fulfillment Network) as well as the pan-European shipping network (PAN-EU). They are part of a European tax regulation for deliveries (Versandhandelsregelung): Up to a certain limit, the delivery threshold, the seller continues to transfer the sales tax to the tax office in the country of origin. If they go past the limit, the tax has to be transferred in the foreign country. Different countries in Europe charge different amounts for their sales tax so your tax spending as a seller might go up or down.
Most important delivery thresholds in Europe
| Country | Delivery threshold |
|---|---|
| Germany | 100 000€ |
| England | 100 000€ |
| France | 35 000€ |
| Italy | 35 000€ |
| Netherlands | 100 000€ |
| Austria | 35 000€ |
| Spain | 35 000€ |
All delivery thresholds refer to the net revenue per year.
Austria is especially important for sellers on amazon.de because Austrians like to shop on the German marketplace and tend to do so a lot.
Voluntarily waiving delivery thresholds
Since some countries might charge a lower sales tax than the one you’re selling from, it might be beneficial for a company to voluntarily waive the delivery thresholds. This means that from the very first Euro of revenue, you pay the foreign (and lower) tax to the respective foreign tax office.
Voluntarily waiving delivery thresholds and PAN-EU
In general, you have to distinguish between two scenarios:
Situation #1: The storage location is in the same country as the place of destination, meaning your customer resides in the same country from which you’re sending out the product. This is no issue at all if you take part in PAN-EU delivery and have registered your taxes in the respective country of destination. In this case, you simply transfer the foreign sales tax and put the respective VAT number on your invoice as well.
Situation #2: The customer is not located in the country where you’re storing and sending out your product. For example, if the article is in a warehouse in France and being sent from there to an Italian customer, the tax has to be transferred in the country of destination, in this case Italy.