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Glossary

B2C (business to consumer) supplies

B2C (business-to-consumer) supplies: It refers to supplies to final consumers and covers the transactions listed in section 1.2 of the European Commission's Explanatory Notes.

Shipment Goods packed together and shipped simultaneously by the same supplier or sub-supplier to the same recipient and covered by the same transport contract.

Digital interface holder considered a passive subject

It is considered that the goods are received from the underlying supplier and delivered to the final consumer. It is considered a taxable person and has the same rights and obligations for VAT purposes as the supplier. See section 2.1 of the European Commission's Explanatory Notes.

Selling products remotely

Distance sales of goods within the EU (intra-community) and distance sales of goods imported from third countries or territories within the EU , which are defined in Article 14(4) of the VAT Directive

Electronic interface

It should be understood as a broad concept that allows two independent systems or the system and the end user to communicate with the help of a device or program. An electronic interface could encompass a website, portal, gateway, marketplace, application program interface (API), etc.

European Union member states

These are the countries of the European Union where the harmonized VAT of Directive 2006/112/EC applies. They are Germany, Austria, Belgium, Bulgaria, Czechia, Cyprus, Croatia, Denmark, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania and Sweden.

Goods subject to excise duty

Products subject to harmonised excise duties, such as alcohol, tobacco and energy.

Logistics services

Services provided to suppliers of goods that consist of storing the goods, preparing orders and sending the goods from the warehouse.

Intermediary

Person established in the Community, designated by a supplier or a digital interface holder considered a taxable person, who carries out distance sales of goods imported from third countries or territories as debtor of VAT and responsible for complying with the obligations established in the single window regime for imports.

Intrinsic value

  1. For commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not indicated separately on the invoice, and excluding any other taxes and fees that may be determined by the customs authorities on the basis of any relevant document.
  2. For non-commercial goods: the price that would have been paid for the goods themselves if they were sold for export to the customs territory of the Union.

Small value goods

Goods in shipments whose intrinsic value at the time of import does not exceed 150 euros (except products subject to excise duty).

Special procedures

Special arrangements include the Union external arrangements, the Union arrangements and the import arrangements.

  • The “External Regime of the Union” is the special regime for services provided by taxable persons not established in the Community provided for in Title XII, Chapter 6, Section 2, of the VAT Directive
  • The “Union Regime” is the special regime for intra-Community distance sales of goods, deliveries of goods within a Member State facilitated by electronic interfaces, and services provided by taxable persons established within the Community, but not in the Member State of consumption, as set out in Title XII, Chapter 6, Section 3 of the VAT Directive
  • The “Import Regime” is the special regime for the distance sale of goods imported from third countries or territories, as established in Title XII, Chapter 6, Section 4, of the Directive on VAT

Supplier

Taxable person who sells goods or services within the European Union or who makes distance sales of goods imported from third countries or territories directly to customers when delivery has not been facilitated through an electronic interface.

Tax representative

Person established in the Community designated by a supplier as debtor of VAT and responsible for compliance with obligations regarding VAT. Details regarding the tax representative are addressed in the national rules of the Member States.

Taxpayer not established in the Community

Taxable person whose headquarters of economic activity is not located in the territory of the Community nor does he have a permanent establishment there.

Third countries and territories

"Third territories" are those mentioned in article 6 of the VAT Directive : Mount Athos; Canary Islands; the French territories of Guadeloupe, French Guiana, Martinique, Réunion, Saint Barthélemy and Saint Martin; Åland Islands; Champion of Italy; the Italian waters of Lake Lugano; Heligoland Island; Büsingen territory; Ceuta; Melilla; Livigno.

"Third country" is any state or territory to which the Treaty on the Functioning of the European Union does not apply (see Article 5 of the VAT Directive ). Underlying Provider

Taxable person who delivers goods or makes distance sales of goods imported from third countries or territories through an electronic interface. See section 2.1 of the European Commission's Explanatory Notes.