- VAT compliance in the EU is being transformed by the One Stop Shop (OSS) and mandatory e-invoicing.
- OSS, introduced in July 2021, allows businesses to report cross-border B2C transactions through a single VAT return in one EU member state.
- OSS simplifies VAT obligations for e-commerce, digital services, and distance selling.
- OSS includes Union OSS for EU businesses, Non-Union OSS for non-EU digital service providers, and Import OSS for non-EU businesses shipping low-value goods.
- E-invoicing enhances VAT reporting by providing real-time, accurate, and transparent transaction data.
- E-invoicing supports compliance and fraud detection with a machine-readable audit trail.
- OSS reduces the need for multiple VAT registrations, cutting compliance costs and simplifying processes.
- OSS encourages EU-wide trade by removing VAT-related barriers.
- In Romania, the national e-invoicing system RO e-Factura focuses on domestic transactions, with different rules for OSS users.
Source: vatit.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.
