What is the distance selling regime?
The term “distance selling” is used when European companies trade within the territory of the European Union.
There are a number of conditions for the scheme to be applicable:
- The goods must be delivered by the seller, on his behalf, to the customers.
- Deliveries must be made from France to another EU Member State or vice versa.
- The client must be a non-taxable physical person or a person benefiting from a VAT exemption scheme.
However, you must be careful because if you fall under this regime, there are thresholds to respect. If you exceed these thresholds, you will have to register in the country where you exceeded it.
For example, if you sell and deliver to private individuals in France, sales are exempt from VAT up to €35,000. If the amount exceeds this, you must register for VAT in France, and your sales will be subject to French VAT.