Mail-order business 2024 is a topic that is constantly gaining importance in the era of online shopping. With rapid growth of e-commerce, entrepreneurs must adapt to evolving trends and expectations. Below, we explain the intra-Community distance sale of goods and the sales value limit. We also explain what to do if you exceed the limit.
Mail-order business 2024 – what is the intra-Community distance sale of goods?
The definition of intra-Community distance sales of goods (IDSO) results from EU regulations. It is regulated by the EU Directive 2017/2455 of 5 December 2017 (the Directive). The IDSO means supplies of goods dispatched or transported by or on behalf of the supplier from a Member State other than that in which dispatch or transport of the goods to the customer ends.
Intra-Community distance sales of goods must meet the following conditions:
- the supply of goods is carried out for a taxable person, or a non-taxable legal person, whose intra-Community acquisitions of goods (IAG) are not subject to VAT or for any other non-taxable person;
- the goods supplied are neither new means of transport nor goods supplied after assembly or installation, with or without a trial run, by or on behalf of the supplier.
We can also talk about the IDSO when the supplier is indirectly involved in transporting goods.
| When are intra-Community acquisitions of goods not subject to VAT? | If it concerns: – deliveries of goods that are exempt from VAT in the territory of the Member State of acquisition, carried out by a taxpayer or a non-taxable legal entity, – acquisitions made by a taxpayer for purposes related to their agricultural, forestry, or fisheries business subject to the common flat-rate system for farmers, by a taxpayer exclusively making deliveries of goods or providing services for which they have no right to deduct VAT, or by a non-taxable legal entity. |
Mail-order business 2024 – what goods do not qualify for distance sale of goods?
According to the Directive, distance sales of goods do not apply to:
- new means of transport,
- goods that are installed or assembled, with or without a test run, by the supplier or by an entity acting on his behalf
- goods taxed under the VAT margin scheme
Mail-order business 2024 – what is the limit for the value of distance sales of goods?
The limit of distance sales of goods is the permissible annual value of distance sales. Exceeding the limit obliges the taxpayer to register the taxation of distance selling in the EU country of destination. The applicable VAT rates are those of the destination country.
The limit of distance sales of goods in 2024 is 10 000 euros.
This is the annual limit, i.e. the total value of mail-order sales per year.
Importantly, the limit of distance sales of goods applies to all Member States. This was not the case in the previous regulations.
Mail-order business 2024 – what to do if you exceed the limit of the distance sale value?
If the distance sale limit of 10 000 euros is exceeded, Polish taxpayers have these options:
- Register the taxation of mail-order sales for VAT purposes in each EU country to which the sale is made
- Submit a notification to the Polish head of the tax office for registration to the VAT OSS procedure. Then, tax the mail-order sale according to VAT rates of the EU destination countries. In this case, the entrepreneur can do it by submitting quarterly electronic declarations in Poland.
Mail-order business 2024 – when is a cash register required?
Entrepreneurs selling products to natural persons without business activity must record sales on a cash register. The same applies to entrepreneurs selling goods to farmers on flat-rate.
The turnover limit requiring a cash register stems from specific provisions. The Regulation of the Minister of Finance of 24.11. 2023 on exemptions from the obligation to keep records of sales with the use of cash registers specifies it.
According to regulations, if sales turnover in the previous financial year or the current tax year didn’t exceed 20 000 PLN, no cash register is required.
To qualify for the exemption from a cash register obligation for mail-order sales, certain conditions must be met. They include e.g. payments by bank or post and proper transaction documentation.
This exemption does not apply to the sale of certain products. For example, perfumes or photographic equipment is excluded. Another exception is a situation where the goods are collected in person at the store’s premises. To benefit from the exemption, cash cannot be accepted. All transactions must be documented in accordance with the regulations.
Mail-order business 2024 – summary
Mail-order business in 2024 is a booming sector that brings numerous challenges and opportunities. To meet market expectations, it is worth following the latest trends. Adapting sales strategies and introducing innovative technological solutions is crucial. Changing legal regulations are also of key importance. They require entrepreneurs to constantly adapt to new requirements.
Do you want to learn more about mail-order business? Our experts are at your disposal. We will answer all your questions and provide comprehensive legal advice. Feel free to contact us!
FAQ – Questions and answers about mail-order business 2024
What is a mail-order sale?
It is a form of sale in which products are ordered by customers from a distance. Then they are delivered to them via courier or postal services.
What are the most important mail-order trends for 2024?
The most important trend is the development of process automation and personalization of offers. Ecological packaging and the growing popularity of mobile shopping are also significant.
What legal changes apply to the distance sale of goods in 2024?
In 2024, new consumer protection regulations, product information requirements and regulations related to the protection of personal data come into force.
What technologies should be implemented in mail-order sales?
Consider implementing CRM systems and marketing automation. Customer service chatbots and advanced analytics systems may also be useful.
How to effectively manage a warehouse in a mail-order business?
Effective warehouse management includes process automation and real-time inventory monitoring. Storage space optimization is also necessary.
What are the best practices for mail-order business and customer service?
Best practices include fast and effective communication and personalization of service. Clear delivery information and a return and complaint policy will be an asset.
What is the importance of personalization of offers in mail-order business?
Personalizing offers increases customer engagement. It improves the shopping experience and leads to higher conversion rates.
How to take care of ecology in the mail-order business?
Taking care of the environment includes e.g. the use of ecological packaging. Reducing CO2 emissions in the logistics process is crucial. Promoting environmentally friendly products is also advisable.
What are the most common mistakes in mail-order business?
The most common mistakes are insufficient website optimization and neglecting customer service. Lack of transparency in the return policy, and improper inventory management may also cause problems.
How to increase sales in a mail-order business?
Increasing sales can be achieved through SEO optimization. Effective marketing campaigns and loyalty programs are important. Improving the user experience on the website would be also effective.
