Distance sales in Europe
The distance selling arrangement explained:
The main rule is that for B2C sales the destination country principle applies. In order to make things a little simpler for small entrepreneurs and start-ups, the distance selling scheme has been introduced. Up to the threshold, you may declare sales in your own country. If you exceed the threshold of €35,000 or €100,000 (GBP70,000) in Germany, the Netherlands, Luxembourg and the UK, you must register for sales tax in that country and from that moment on submit sales tax returns.
If you do not comply with this obligation, you can be prosecuted for tax evasion, both in the country where you should have registered and in the country of residence, this is a legal requirement in all EU countries. All Member States also work closely together in these countries.