Starting July 2021 there is a new system of VAT registration and compliance calles One Stop Shop (OSS). How will those changes affect you?
Ever since the beginning of 2015 businesses providing broadcasting, telecommunications and e-services to customers in other EU countries were able to register in the Mini One Stop Shop (MOSS) scheme.
Starting the 1st of July 2021, this scheme now includes more services with place of supply in an EU country, selling goods to customers located in other EU states or selling goods by an online marketplace. This scheme is no longer meant for e-services only.
Businesses no longer have to register for VAT separately in each country they overstepped the VAT limit - starting July businesses can only register in the OSS scheme and pay VAT to one tax office that will redistribute the tax among other countries' tax offices.
For instance, if you are a German business owner selling goods to other EU countries, you can now sign up to the OSS scheme at the German tax office. This office is who you will pay VAT to and where you will submit your tax returns for each EU country separately.
The OSS scheme is voluntary. If you choose to not sign up to the OSS scheme you can continue paying VAT in each country separately. Each country has its own registration form. Businesses who registered to the MOSS system and want to continue staying VAT compliant using the OSS scheme don't have to register again.
The new OSS will have 3 schemes:
Union OSS is meant for all businesses registered in the EU that:
The Union OSS scheme can be used for:
A taxable person established in the EU (who is not a deemed supplier) can use the Union OSS for:
A taxable person not established in the EU for:
An electronic interface (established in the EU or outside the EU) facilitating supplies of goods (deemed supplier) for:
A taxable person established in the EU (who is not a deemed supplier) can use the Import OSS for:
the Import OSS can't be used for:
This scheme can be used by businesses based outside of EU.
A taxable person established in the EU (who is not a deemed supplier) can use the Non-Union OSS for:
Do you find it confusing? Let us help you.