VAT e-Commerce changes. Union & Non-Union Scheme
UNION AND NON-UNION SCHEME
Both a Union and Non-Union Scheme will be available depending on the circumstance as applicable to each business.
1. Union Scheme
This is available to businesses who already have an existing establishment in the EU. The scope of the Union Scheme will be extended from the current position to include cross-border supplies of services on a B2C basis and intra-Community distance sales of goods.
Non-EU established suppliers may also register for the Union Scheme; however, this registration should be limited only to the taxpayer’s intra-Community distance sales of goods. This may result in non-EU established taxpayers also being required to register for the OSS under Non-Union Scheme as noted below.
2. Non-Union Scheme
This is available to businesses who do not have a business/fixed establishment in the EU. Such suppliers should be entitled to register for the OSS in any EU Member State.
The Non-Union Scheme will enable the reporting of B2C supplies of services to the EU.
REGISTRATION
The Member State in which a registration can be availed of is dependent on a number of factors including the status of any EU establishment and the type of supplies being carried out.
1. Union Scheme Registration
As an example, Irish established taxpayers can register for OSS with the Irish tax authorities. A pre-populated registration should be generated (as Revenue should have the required information in respect of the taxpayer). The registration should also include details of any other establishments held in the EU.
Once registered, the VAT OSS Registration Number should be the same as the Irish VAT number.
2. Non-Union Scheme Registration
Various background information in respect of the taxpayer should be provided to Revenue including the following;
- Company name/trading name
- Address
- website URLs
- Contacts
- National tax reference number
- Bank details
In addition, the taxpayer will need to confirm they do not hold a Non-Union Scheme registration in another EU Member State.
Once information is provided to Revenue, a verification code will need to be created which will be later used to retrieve the VAT OSS Tax Registration Number and digital certificate (required to obtain Revenue’s portal/ROS access).
Source: rsm.global