EU VAT OSS for cross-border sales: the 10,000 euro threshold explained
Which VAT to charge on orders from other EU countries: the 10,000 euro threshold, what changes after it, OSS registration, the customer's country rates and records, for Romania and Denmark.
Vasile Dingă
.comparison-cards { display: flex; flex-direction: column; gap: 1.5rem; } .comparison-card { background: #fff; border-radius: 16px; padding: 20px; border: 2px solid #efefef; } .comparison-header { display: flex; justify-content: space-between; font-size: 16px; margin-bottom: 12px; } .comparison-row { display: flex; justify-content: space-between; padding: 8px 0; border-top: 1px solid #efefef; font-size: 14px; color: #1f2937; } .comparison-label { font-size: 14px; width: 30%; } .comparison-value { width: 65%; text-align: right; } @media (max-width: 600px) { .comparison-row { flex-direction: column; align-items: flex-start; } .comparison-value { text-align: left; margin-top: 4px; } } A Romanian store shipping parcels to Hungary, Bulgaria or Germany, or a Danish webshop selling to Sweden, sooner or later hits the same question: which VAT do I charge on orders from other EU countries? Since 1 July 2021 the rules are the same across the Union: a common threshold of 10,000 euros, the customer's country VAT above it, and the One Stop Shop (OSS), through which you declare and pay everything in one place. Below I explain how it works in plain terms, with examples from Romania and Denmark. This is not tax advice: confirm every step with your accountant. 1. What counts towards the 10,000 euro threshold The threshold covers distance sales to consumers (private individuals, not VAT-registered businesses) in other member states, meaning goods you ship from your country to a customer in another EU country. Telecom, broadcasting and electronically supplied services to consumers in other member states count towards the same total. There is one total for the whole EU, not 10,000 euros per country. 6,000 euros in Hungary plus 4,500 in Bulgaria makes 10,500. It is calculated excluding VAT. The current year and the previous year both count. You can only use the below-threshold rule if you have exceeded 10,000 euros neither this year nor last year. It applies to businesses established…