Distance selling means that a supplier sells goods to private individuals or customers established in another
Member State of EU who do not apply VAT to their intra-Community acquisitions of goods.
The supplier takes care of the transport of the goods to the customers. A typical example is mail order companies(E-Shops).
However, there are some additional restrictions. For instance, supply of new motor vehicles like cars,
trucks and boats does not qualify. As well as, a compulsory VAT registration is required for a supplier of excisable goods to the UK
(like tobacco and alcohol).
Even if the threshold is not exceeded, traders can still opt to identify for VAT in the
Member State of the consumer and charge the VAT applicable in that country.
If a supplier provides a distant sales service to several EU member states, a separate accounting of sold goods in regards to VAT calculation is required. The supplier then must seek a VAT registration (and charge applicable rate) in each such country where the volume of sales in any 12 consecutive months exceeds local threshold.