VAT-OSS (they one hundred shop ) will soon enter into force. The new rules will replace and complement the existing law on MOSS, i.e. VAT clearance according to the EU unified procedure. What will change?
It will be new to expand the scope of tax accounting, which will cover broadcasting, telecommunications and electronic services provided to non-taxable entities, as well as those traders who supply goods to such buyers. Instead of MOSS and shipping sales from the country, we will therefore have a comprehensive OSS service station, further reinforced by the creation of a WSTO, i.e. intra-Community distance sales of goods, with ‘internal distance sales’ covering supplies to the following buyers:
- - the supply of goods to non-taxable persons (consumers);
- - supplies of goods (including excise goods) to taxable persons or non-taxable legal persons listed in Article 151 VAT Directives (deliveries in diplomatic relations, for international organisations, NATO, etc.); and
- supplies of goods (except excise goods) to: (i) taxable persons carrying out only the supply of goods or services for which they are not entitled to deduct VAT; (ii) taxable persons subject to a common flat-rate scheme for farmers; (iii) taxable persons subject to the second-hand margin procedure and (iv) non-taxable legal persons (also known as a group) 4.
The sale of goods at a distance may cover any kind of goods irrespective of their value, including products subject to excise duty. Scope Article 14(4)(1) the VAT Directive and therefore the Union procedure shall cover the supply of goods subject to excise duty only in specific cases depending on the buyer to whom the goods are supplied, and only where they are supplied to:
- - non-taxable persons;
- or
- - taxable persons or non-taxable legal persons for which intra-Community acquisitions are not subject to VAT in accordance with Article 3(1) VAT Directives, thus listed in Article 151 VAT Directive.
Example 1
The supplier/service provider established in the EU sells goods at an intra-Community distance and provides services to recipients in different EU Member States. The service provider would like to register for the purposes of the EU procedure and to declare and pay VAT through the EU procedure solely for the provision of services. VAT on distance sales of goods would like to declare and pay in accordance with the general VAT rules in the relevant national VAT return of the Member State concerned.
The supplier/service provider who has decided to register for a one-stop shop should declare all its goods and services falling within the Union procedure under the one-stop shop. Therefore, the supplier/service provider cannot choose to use the Union procedure only for the provision of services. After registration for the purposes of the Union procedure, both the provision of services and the sale of distance goods should be declared within a one-stop shop.
Example 2
An electronic interface operator established in the EU is an entity recognised as a supplier for intra-Community distance selling of goods and domestic supply of goods to customers in the EU. The electronic interface operator also provides cross-border B2C electronic services to recipients in the EU.
The electronic interface operator would like to use the one-stop shop to declare and pay VAT exclusively for distance selling of goods.
VAT on domestic supplies of goods carried out by an electronic interface operator as an entity recognised as a supplier and for the provision of electronic services would be declared and accounted for by that operator in accordance with the general VAT rules.
The supplier/service provider who decides to register for a one-stop shop should declare all its goods and services falling within the Union procedure under the one-stop shop. Therefore, an electronic interface operator cannot choose to use a one-stop shop for selected supplies and services.
After registration for the purposes of the Union procedure, all its eligible supplies and services (sale of goods at a distance, domestic supplies of goods as an entity recognised as a supplier and provision of services) must be declared within a one-stop shop.