July 2021 VAT changes – The OSS (One Stop Shop) for goods and services

July Changes are around the corner and all businesses should get updated on what is changing and all of their available options.

Which transactions will be affected by the new changes?

In general, businesses that are involved in the following transactions will be affected by the upcoming changes:

• Distance sales of goods within the EU carried out by suppliers or deemed suppliers such as online market places (amazon, eBay etc.)
• Domestic sales of goods by deemed suppliers
• Supply of services by EU and non-EU sellers to consumers in the EU
• Distance sales of goods imported from third territories or third countries carried out by suppliers and deemed suppliers, except for goods subject to excise duties.

The Mini One Stop Shop (MOSS)

The Mini One Stop Shop was introduced on Jan 1st, 2015 and allows taxable persons supplying TBE services (telecommunications, broadcasting, and electronic) to non-taxable persons in Member states in which they do not have an establishment to account for VAT. This is done via a web-portal and it allows these businesses to avoid having to register for VAT in each Member State in which they offer their services.

The new One Stop Shop will be extended to all B2C services and it will also apply to all distance sales of goods within the EU and to certain domestic supplies of goods facilitated by online marketplaces.

At the same time, a new Import One Stop Shop will be created that will be applicable to all distance sales of low-value goods imported from outside the EU.

What are the advantages of the new One Stop Shop?

Businesses selling goods and services within the EU will have a lot to gain from the new OSS scheme.

The top advantages are:

• VAT registration only in one Member State instead of having to register in each country where goods or services are offered.
• Single declaration and payment of VAT of goods and services for all Member States in one VAT return.
• Having to work only with one Tax authority in the member state in which the company is registered in one language for all of their EU sales.

All businesses must hurry in order to get ahead of the new VAT changes and reduce any impact on their flow of goods and services. GVC can help you register for the OSS. Click below to contact our VAT experts for further advice

Source: europa.eu