Revised ViDA drafts for approval on the Ecofin meeting on May 14, 2024 published
What is in the ViDA proposal for the SINGLE EU VAT REGISTRATION AND IMPORT ONE STOP SHOP (IOSS)
- Council Directives (EU) 2017/24552 and 2019/19953 amended Directive 2006/112/EC for VAT rules in cross-border e-commerce. While successful, improvements are still needed.
- Certain rules need clarification, such as the calculation of the EUR 10,000 threshold for VAT on telecommunications, broadcasting, electronic services, and intra-Community distance sales. Minor amendments are also needed for practical aspects.
- Directive 2006/112/EC should be amended to include business-to-consumer supplies of services by taxable persons established outside the Union within the scope of the non-Union scheme.
- The OSS schemes under Title XII, Chapter 6 of Directive 2006/112/EC should be expanded to cover zero-rated and VAT-exempt supplies with a right of deduction.
- Amendments should be made to clarify the timing and deadline for corrections to VAT returns under the existing simplification schemes.
- The reverse charge mechanism should be mandatory in situations where suppliers are not established or identified for VAT purposes in the Member State where VAT is due.
- The scope of the Union OSS scheme should be expanded to cover domestic business-to-consumer supplies of goods by non-established taxable persons.
- Powers should be conferred to the Commission to secure the correct use and verification of IOSS VAT identification numbers.
- Measures should be introduced to reduce the need for multiple VAT registrations, including a new scheme for the VAT compliance obligations associated with transfers of own goods.
- Call-off stock arrangements should be phased out by a specified end date.
- Justified cases should be accompanied by explanatory documents for the transposition of measures.
- Union-level measures are necessary to achieve the objectives of bringing the VAT system into the digital era, improving the VAT treatment of platforms, and reducing the need for multiple VAT registrations.
Source data.consilium.europa.eu
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