VATupdate

EU VAT and B2C E-Commerce, the rules will change July 1, 2021 – Chapter 3 – Services: Improvements to the Mini One Stop Shop in 2019-2021

Mini One Stop Shop

  • Mini One Stop Shop came into force on 1 January 2015
  • B2C: Allows taxable persons supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable persons in Member States in which they do not have an establishment
  • Optional scheme, a simplification measure following the change to the VAT place of supply rules, in that the supply takes place in the Member State of the customer, and not the Member State of the supplier.
  • This scheme allows these taxable persons to avoid registering in each Member State of consumption.
  • Quarterly reporting (via web portal) and VAT payment only in the MS of registration covering all supplies made in the EU

As of 2019 – Services only

  1. Optional threshold of EUR 10 000 for intra-EU B2C supplies of TBE services, below which they remain taxable in the MS of the supplier
  2. Optional threshold of EUR 100 000 – presumption of the customer location – only one piece of evidence required (instead of 2)
  3. Invoicing: rules of the MS of identification (MSI)
  4. Close a gap in the MOSS: VAT registered non-EU businesses can make use of the non-Union OSS for other activities than TBE services (e.g. for occasional transactions)

(Thresholds are to be determined on a EU wide basis)

As of 2021 – Services only

  1. The deadline for submitting VAT returns is extended from 20 days to the end of the month following the tax period
  2. Corrections to previous VAT returns can be made in a subsequent return instead of the initial return to be corrected (until 3 years back)
  3. Marketplaces deemed supplier

(Still not possible to reclaim foreign VAT through MOSS return)

Extension to supplies of services other than TBE services

  • The OSS can be used to declare and pay VAT
  • All B2C supplies of services
  • (Union scheme) supplied by taxable persons established in the EU
  • (Non-Union scheme) supplied by taxable persons established in the EU (3rd country suppliers)

Place of Supply rules remain unchanged

See also

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