EU VAT e-Commerce Package: guidelines and explanatory notes on OSS and IOSS

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In view of the application of the last set of measures foreseen by the VAT E-Commerce Package, namely the setting up of the national One-Stop Shops (OSS) and Import One-Stop Shops (IOSS) by 1 July 2021, the European Commission has made available some materials and fundamental information to ease the introduction by businesses of the new rules and the modernisation of the EU VAT and customs systems.

The OSS is an extension of the current Mini One-Stop Shop (MOSS) for the telecommunication services, and is aimed to simplify the VAT obligations for online sellers and electronic interfaces (marketplaces). The OSS allows to VAT register electronically in just one Member State for all intra-EU distance sales and B2C service supplying, and to declare and pay VAT in a single electronic quarterly return. The VAT registration to the OSS is possible since 1 April 2021 and a guide is already available online in order to provide a better understanding of the OSS, its procedures and the technical specification for the special schemes applicable under the VAT Reform.

The IOSS builds on the OSS and allows the collection of VAT and customs duties for goods imported from non-EU countries. As of 1 July, businesses can use this system to comply with their VAT e-commerce obligations on distance sales of imported goods. The main changes brought by the introduction of this IOSS is that the VAT exemption for goods below €22 of value will be repealed. The new VAT e-commerce rules will abolish this provision, and, from 1 July 2021, all commercial goods imported into the EU from a third country or third territory will be subject to VAT irrespective of their value.

The European Commission has published the following guidelines and explanatory notes that provide more information on the VAT E-commerce Package and the upcoming changes:

The Commission’s website provides the materials also in other languages of the EU. An overview of all the new changes can be found on the page of the new VAT e-commerce rules.

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