E-commerce and a summary table of territoriality rules

As of the 1^st of July 2021 VAT on intra-community sales is to be imposed where the sale took place. It is case dependent however as it only applies to sellers based in a single EU country, subject to an annual fixed limit of 10 000 euros.

If the sales fall below the 10 000 euro limit, the VAT is imposed in the EU country in which the sale was made which must also be the country in which the seller is based.

If the sales fall above the 10 000 euro limit, the VAT is imposed in the recipient EU country.

Location of consumption	Liable person relative to the 10 000 euro limit	Location of remote sale (EU country in which the VAT is imposed)
France	– Liable person above the limit – Liable person not subject to the limit because not based in the EU or based in several EU countries	France
	– Liable person in another EU country + below the limit	Another EU country
Another EU country	– Liable person based in the EU country the good is sent from, above the limit – Liable person not subject to the limit because not based in the EU or based in several EU countries	Another EU country
	– Liable person based in France, above the limit	France

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