The European Commission’s proposal creates further opportunities for taxpayers to do business across borders in the EU with a single VAT registration through the increased use of its One-StopShop (OSS) regimes.
New Special Scheme for transfers of own goods
Currently businesses that move goods from one Member State to another outside of a sales transaction, are obliged to make an intra-Community acquisition of those goods in the Member State of destination, which obliges them to register for VAT in that Member State. This is a source of multiple VAT registrations for businesses in different sectors, particularly for those active in consumer supplies and e-commerce.
Extension of the Union One Stop Shop to all types of B2C supplies
As part of the 2021 e-commerce VAT Package, suppliers making cross border B2C sales of goods within the EU as well as marketplaces collecting VAT as deemed supplier on sales made by non-EU suppliers within the EU, are allowed to report these supplies to one Member State of identification using the Union OSS scheme. The same scheme also allows suppliers to report all B2C services provided across the EU.