EU Announces VAT Compliance Changes


By Global Tax Weekly

The European Union has finalized regulations to complete the legislative framework for e-commerce reforms that will be implemented from 2021.

A new Regulation provides details for registration in the VAT One Stop Shop, including the Import One Stop Shop, and for the VAT One Stop Shop return.

Under plans initially approved by the Economic and Financial Affairs Council in November 2017, the EU will extend the existing mini one-stop shop (MOSS) from January 1, 2021.

MOSS was introduced alongside reforms in January 1, 2015, to simplify VAT compliance for firms that faced new rules obligating them to collect VAT on business-to-consumer (B2C) supplies of broadcasting, telecommunications, and electronic (BTE) services based on the location of the consumer, rather than the supplier.

MOSS is to be expanded from 2021 into a “One Stop Shop” (OSS), which will cover:

  • All B2C supplies of services, including by non-EU businesses;
  • Intra-EU distance sales of goods; and
  • Distance sales of goods imported from third countries and third territories in consignments of an intrinsic value of a maximum of EUR150 (USD166).

Specifically, the one-stop shop will relieve online traders of having to register for VAT in each of the member states in which they sell covered goods or services, in the same way as the current mini One Stop Shop simplifies compliance for those that provide B2C supplies of BTE services.


For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look





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