Expansion of Union One Stop Shop (OSS) Scheme for VAT in the Digital Age

• The EU Commission’s VAT in the Digital Age (ViDA) proposals aim to modernize VAT across the EU.
• One pillar of ViDA is the expansion of the Union one-stop-shop (OSS) scheme.
• The Union OSS scheme is an optional single VAT registration for businesses selling cross-border to final consumers in the EU.
• The OSS allows businesses to declare and remit VAT due on all their cross-border sales via one Member State administration and in one language.
• The Commission proposes to expand OSS by bringing more supplies in scope, simplifying registration requirements, and easing administrative burdens.
• From 1 January 2025, various supplies can be reported through OSS when supplied B2C, including domestic supplies of goods, supplies of goods with installation or assembly, supplies of goods on board ships, aircraft, and trains, and supplies of gas, electricity, heating, and cooling.
• The Commission’s public consultation on the ViDA proposals highlighted varying viewpoints on OSS expansion.
• Stakeholders generally agreed that OSS has minimized the need for multiple VAT registrations but reported issues with its functionality.
• Stakeholders desired even more OSS expansion, including B2C supplies, B2B supplies, and additional functionality.
• The proposed OSS expansion is moderate compared to the options presented during the consultation, potentially due to technical and administrative difficulties.
• The provisions may expand further as more companies utilize ViDA and stakeholders analyze the system’s successes and failures.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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