Remote sales: TEVEA international provides valuable advice on VAT

Distance selling is a derogation from the general principle of determining the place of delivery of tangible personal property, ie the place of departure of the shipment or transport. It has the particularity of applying only to persons benefiting from a derogation scheme (PBRD) and to natural persons not subject to VAT (individuals). Thus, persons liable to VAT are excluded from this derogation.

Distance selling covers only the supply of goods relating to the goods which are dispatched or transported by or on behalf of the seller to the purchaser. These deliveries must be made from France to another EU Member State or vice versa.

The distance selling regime applies to all correspondence transactions, whether by telephone or by telesales. The same applies to all tangible goods ordered on the Internet.

The place of taxation of goods subject to the distance selling regime is subject to a threshold set by decree. Since January 1, 2016, in France, this threshold is 35,000 euros HT. Thus, the place of taxation of goods delivered from France to another EU country is not located in France if the amount exceeds this threshold. On the other hand, if the amount of distance sales is below this threshold, the place of taxation of the VAT will be in France.

With regard to distance sales from one EU country to France, the place of delivery is in France when the seller has made distance sales to France for an amount higher than the threshold set by decree.

In accordance with the tax rules established by the European Union, the seller observes certain reporting obligations if the sale price exceeds the thresholds laid down. In particular, he must register for VAT in the country of destination of the goods. It shall also be required to submit to the tax authorities of that State periodic VAT returns.

The system of distance sales is complex because it falls under European VAT rules. To avoid any inconvenience following a violation of the tax provisions, it is recommended to seek advice from a professional. TEVEA international, a company specializing in operational VAT advice, can help you in this case.