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Since April 1st the pre-registration in the One Stop Shops (OSS/IOSS) is available in each Member State. Businesses willing to make use of these new schemes are invited to register! Please find the contact details here. The guide to the VAT One Stop Shop (OSS) explaining in detail how to register, declare and pay VAT via the OSS/IOSS is also availableSearch for available translations of the preceding link•••! Currently in English and soon in all EU languages!
The 2020 MOSS statistics report is published and shows year after year an increase in VAT collected from the MOSS for the whole EU raising from EUR 2.7 billion in 2015 to EUR 5.04 billion in 2019! Although limited to telecommunication, broadcasting and electronic services, the MOSS proves the success of this One Stop Shop mechanism. This looks very promising for the launch of the VAT e-commerce package as of 1 July 2021.
On 30 September 2020, the Commission published Explanatory Notes on the new VAT e-commerce rulesSearch for available translations of the preceding link•••. They contain extensive explanations and clarifications on these new rules including practical examples on how to apply the rules if you are a supplier or an electronic interface (e.g. marketplace, platform) involved in e-commerce transactions. These explanatory notes are meant to help online businesses and in particular SMEs to understand their VAT obligations arising from cross-border supplies to consumers in the EU.
These Explanatory Notes are now available in all official EU languages, as well as in Chinese and Japanese. The Explanatory Notes will be accompanied by the update of the Guide to the One Stop Shop. The Guidance for Member States and Trade concerning the importation and exportation of low value consignments is published too.
Due to the practical difficulties created by the measures taken to contain the coronavirus pandemic, the application of the new VAT e-commerce rules is postponed by six months. Thus, the rules will apply as of 1 July 2021 instead of 1 January 2021, giving Member States and businesses additional time to prepare.
The European Commission aims at simplifying VAT obligations for companies carrying out cross-border sales of goods or services (mainly online) to final consumers and to ensure that VAT on such supplies is paid correctly to the Member State in which the supply takes place, in line with the principle of taxation in the Member State of destination.
The Commission proposed EU legislation in this area in two stages. The first measures entered into force in 2015 and covered telecommunications, broadcasting and electronic services to consumers. The second package of measures was adopted by the Council in December 2017 and extended the simplification to distance sales of goods as well as to any type of cross-border service supplied to final customers taking place in the EU. The latter measures, also referred to as ‘the VAT e-commerce package’ are set to apply from 1 July 2021.
1. Mini One Stop Shop (MOSS)
Since 2015, a simplified system is in place to declare and pay VAT on business-to-consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services in the EU. Detailed information on the functioning of MOSS is available on the MOSS portal.
2. The VAT e-commerce package
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