No, under the new EU VAT rules for ecommerce, the distance selling thresholds will be abolished.
For EU based businesses – a new registration is being introduced for EU based businesses – OSS (One Stop Shop) from 1st July 2021, a single EU-wide threshold set at EUR10,000 will be introduced.
There is no threshold for non-EU sellers – such as UK or USA based ecommerce businesses.
There is also no threshold set for businesses shipping goods from several member states.
This new threshold will cover any cross-border intra-EU distance sale of goods as well as any sales of digital services for private consumers.
As soon as the EUR10,000 limit is breached during a calendar year, any intra-EU sale of services and goods will need to be charged at the destination country within the EU (where your customers are located).
Businesses will need to determine where their customers are based at the point of sale, and which VAT rates apply to your products as soon as your cross-border turnover exceeds the new EUR10,000 threshold.
You, as the seller, and NOT the marketplace have the VAT obligations if you are an EU based business selling goods which are already in free circulation in the EU or goods above EUR 150 in value which are imported in the EU.
For non-EU sellers holding stock in an EU country, the OSS registration will need in one of the EU member state where stock is held.
Once registered for OSS, you have to report where OSS is applicable, you can’t pick and choose eg. If you are an EU business that sells both goods and services, you can’t use OSS just for the goods and not the services, you need to use OSS for both.
You cannot reclaim purchases via OSS, therefore you will have to reclaim any purchase VAT via the EU VAT Reclaim mechanism if a VAT registration is not required or in the local VAT return if you’re required to register for VAT.