23.06.2021
Announcement of AADE regarding the digital pre-registration in the service of one VAT stop (VAT OSS) for e-commerce From 1.7.2021, new VAT rules for cross-border retail (Business to Consumers) and the import of goods through electronic commerce come into force, in accordance with the amendments to the VAT Directive (2006/112 / EC).
The new rules: - Significantly simplify VAT obligations for cross-border e-commerce companies, Enhance the competitiveness of EU businesses, and - They lead to a deepening of the European single market. To implement the new rules and to facilitate the business community and traders, AADE has developed the new One Stop Shop platform. In more detail:
A. One Stop Shop (OSS) 1. The new digital OSS application OSS allows service and supply companies to register for VAT purposes in a single EU Member State (MS), to which they also pay VAT on other MS, for: - all "cross-border" services, intra - EU long - distance sales of goods, and - some domestic sales of goods.
2. New pan-European threshold for "distance selling" A new € 10,000 threshold for distance selling is being introduced throughout the EU, below which: - telecommunications, radio and television services and electronic services (TBE), and - distance sales within the EU, - will generally be taxed at the supplier 's premises and not at the consumer' s place of residence.
3. Online electronic platforms Special arrangements are in place for companies operating online electronic platforms so that they can be treated as "deemed suppliers" of the goods and become liable for VAT refunds. OSS application can register service providers / suppliers of goods and electronic platforms, installed inside and outside the EU.
B. One stop import shop (IOSS) 1. The new IOSS digital application IOSS allows the payment of VAT on imported products through e-commerce, only for shipments up to 150 euros and for products that are not subject to excise duties (tobacco, alcohol and energy products).
2. The new import VAT regime
From 1.7.2021, VAT is levied on all imports regardless of their value and in accordance with - as the case may be - applicable national VAT rates.
3. Benefits for suppliers / sellers, online platforms and buyers / importers The application allows suppliers and online platforms selling imported goods to final consumers in the EU to collect, declare and pay VAT on a one-stop shop, instead of paying VAT by the buyer (importer) at the time the goods are imported in the EU, as was the case until 30.6.2021 for goods worth more than 22 euros.
The application also makes the process easier for the buyer (importer), who is charged VAT at the time of the online purchase, without requiring the VAT payment process at the time of import. EU-based vendors and online platforms can register in the application. Non-EU-based intermediaries can also be registered through the designation of an EU-based intermediary to meet VAT obligations.