Where a distance sale is taxed

Worked example

The ceramicist crosses the line

Last year the Valencia ceramicist sold €7,400 of vases to consumers in France, Portugal and Italy, and supplied no electronic services. By October this year her cross-border total reaches €9,800; a €450 order from Lyon then takes it past the threshold. From that order on, her sales to consumers in other Member States carry the VAT of the country of arrival. Next year she starts above the line, because this year's total now counts as the preceding year.