Distance Selling

With the transformation of buying patterns that has taken place because of the rapid rise of online shopping, Distance Selling considerations are crucial for expanding businesses, large and small.

Distance selling VAT issues arise when a company in one EU member states sells directly to consumers in another member state. This very often gives rise to the need for a cross-border VAT registration, and a subsequent obligation to file VAT returns and Intrastat reports in the other member on an ongoing basis.

In our experience, many companies are exposing themselves to the risk of serious fines and penalties through failing to comply with regulations. Where the companies concerned are relatively small, which many distance sellers are, the consequences for the business can be grave.

A major reform of the European VAT system (‘The VAT Package’) came into effect on January 1^st, so it’s vital for companies to keep up to speed with VAT and Intrastat reporting requirements across the EU’s 27 member states; one of the key aims of the VAT Package is to secure VAT income for member states and prevent the frauds and evasions that have caused problems for member states.

Accordance has many distance-selling clients across a range of sectors and territories; we focus on the cost-effective delivery of comprehensive compliance services.

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