Leaving the EU has caused a major VAT headache for lots of organisations who sell their goods to consumers in the EU. The administrative liabilities of registering for, and paying, VAT in each individual EU member state, can be enormous and has raised the big question - can your VAT responsibility in the EU be simplified?
Luckily, the EU is introducing a new simplified process called the One Stop Shop (OSS) from 1 July 2021 which goes beyond the Mini One Stop Shop (which some of you may have previously taken advantage of).
Check out this webinar that Tees Valley Business are holding on 24th June 2021 - Trading with the EU: New VAT Rules for Online Retailers from July 2021 - Tees Valley Business
There are three separate OSS schemes all of which allow you to declare and pay VAT due in EU Member States via one web-portal. The three OSS Schemes are:
- Non-Union OSS - For organisations not established in the EU
- Union OSS - For organisations established in the EU (plus those non-established businesses who fall under the exception)
- Import Scheme (IOSS) - For organisations who import consignments into the EU which do not exceed EUR 150
All three of the OSS Schemes are available to UK businesses though, for the majority of businesses, only the Non-Union OSS and the IOSS will apply.
How does this work in practice?
If you are registered for an OSS Scheme you will submit a OSS VAT return detailing the supplies that can be declared on that OSS Scheme. Your VAT return would be submitted quarterly in the Non-Union and the Union scheme and monthly in the Import Scheme. The physical VAT is paid to the Member State of Identification which will be the country where you are registered for the OSS Scheme. The VAT will then be transferred by the Member State of Identification to the correct Member States.
As we said above, this will save you from having to become VAT registered in each EU country where your customers reside.
What steps need to be taken to register for the OSS?
Even though the OSS Schemes don’t open till 1 July 2021, you should look to register as soon as possible. If you are already registered for the Non-Union MOSS Schemes then you will use the OSS variant of that same scheme from the 1 July 2021.
Need help – get in touch:
If you need help understanding the new UK-EU relationship - whether its customs related or the One Stop Shop - we are here to offer you the support, guidance and consultancy that you require. Feel free to get in touch and see what we can offer for you.
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