Commission Implementing Regulation (EU) 2026/1869: New Technical Rules for OSS, IOSS and the ViDA Transfer of Own Goods Scheme

See also ViDA: Implementation ”Single EU VAT Registration” in the Member States – VATupdate

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Regulation (EU) 2026/1869

Date: 27 July 2026 (Effective from various dates in 2027/2028) Source: COMMISSION IMPLEMENTING REGULATION (EU) 2026/1869 of 27 July 2026

1. Executive Summary

Commission Implementing Regulation (EU) 2026/1869 significantly amends and updates Implementing Regulation (EU) 2020/194, which lays down detailed rules for the application of VAT special schemes. This new Regulation is a direct consequence of recent amendments to Council Directive 2006/112/EC (the VAT Directive) and Council Regulation (EU) No 904/2010 (on administrative cooperation in VAT), specifically by Council Directive (EU) 2025/516. The primary objectives are to harmonise electronic reporting across all special schemes, ensure their proper and secure functioning, and guarantee uniform application across Member States. It introduces a new “transfer of own goods scheme” and clarifies existing definitions and procedural requirements for identification, registration, and VAT return submission under the various schemes.

2. Background and Context

The EU VAT framework, particularly concerning cross-border supplies of services to non-taxable persons, distance sales of goods, and certain domestic supplies, has evolved to simplify compliance for businesses and enhance VAT collection for Member States. The “special schemes” (such as the One Stop Shop – OSS and Import One Stop Shop – IOSS) are central to this.

This Regulation is necessitated by:

• Council Directive (EU) 2025/516: This Directive extended existing special schemes and introduced a new one, requiring corresponding updates to the implementing rules.
• Need for Harmonisation: The Commission identified a need to “continue to ensure the proper and secure functioning of all the special schemes and to guarantee the harmonisation of the electronic reporting across all the schemes as well as to support uniform application across Member States.” (Whereas point 3).

The Regulation specifically amends Implementing Regulation (EU) 2020/194 to align it with these changes and enhance administrative cooperation.

3. Main Themes and Key Ideas

3.1. Expansion and Clarification of “Special Schemes”

The Regulation updates and adds definitions to encompass the evolving scope of simplified VAT compliance.

• New overarching definition: Article 1(1)(b) introduces a consolidated definition: “‘special schemes’ means the non-Union scheme, the Union scheme, the import scheme and the transfer of own goods scheme.”
• “Union scheme” redefined: Now explicitly covers “intra-Community distance sales of goods, for certain supplies of goods within a Member State made by a taxable person and for certain services supplied by taxable persons established within the Community but not in the Member State of consumption.” (Article 1(1)(a)).
• New “transfer of own goods scheme”: This is a significant addition, reflecting the expanded scope of VAT simplification. It is defined as “the special scheme for transfers of own goods provided for in Title XII, Chapter 6, Section 5, of Directive 2006/112/EC.” (Article 1(1)(a)).

3.2. Enhanced Data Quality and Administrative Cooperation

A core theme is improving the accuracy and efficiency of data exchange between Member States.

• Automatic Exchange of Information: “The individual VAT identification numbers allocated to or, as applicable, in respect of taxable persons… as well as the name, the postal address, electronic address, VAT identification number or national tax number, status as taxable person deemed to have received and supplied goods… and, where available, websites… shall be automatically exchanged between the Member State of identification and the other Member States via a central register or another trusted data sharing tool in a manner that ensures at all times that Member States have a correct up-to-date view of the validity of all such VAT identification numbers that have been allocated by all Member States.” (Article 1(3)(d)). This aims to improve the integrity of the registration system.
• Pre-filling of Data: To “ensure the quality of the data,” the “Member State of identification shall pre-fill the information already available in its national database concerning taxable persons requesting their registration in a special scheme, as set out in Annex I.” (Article 1(3)(e)). The taxable person remains “responsible for the correctness of the data.”

3.3. Standardisation of Electronic Reporting

The Regulation places a strong emphasis on uniform electronic submission and communication.

• Common Electronic Message: Taxable persons or intermediaries must “submit the VAT returns… to the Member State of identification using the common electronic message set out in Annex III to this Regulation.” (Article 1(4), Article 4(1)). Specific columns within this message are designated for each scheme (Non-Union, Union, Import, Transfer of Own Goods).
• Mandatory Saving Facility: Systems must “offer the facility to save the information, and any change in the information… before that information or change is submitted.” (Article 1(2)(a)). This aims to improve user experience and data integrity.
• Nil VAT Returns: Detailed instructions are provided for filing a nil VAT return when no supplies, transfers, or adjustments occur in a tax period, specifying the exact boxes to be completed for each scheme (Article 1(4), Article 4(2)).
• Conditional Reporting: Taxable persons are “only required to insert the supplies relating to a Member State of consumption if supplies of goods or services under the special schemes have been made in that Member State within the tax period.” (Article 1(4), Article 4(3)). This streamlines reporting by avoiding unnecessary empty entries.
• Information Transmission: The Member State of identification is obligated to send the VAT return information via the CCN/CSI network using the common electronic message to relevant Member States (consumption, origin of goods/services, where goods are transferred to/from) (Article 1(5)).

3.4. Detailed Identification and Registration Requirements

Annexes I, II, and III are replaced, providing extensive detail on the information required.

• Identification Details (Annex I): Specifies required data elements for registration across all schemes, including various VAT identification numbers, company names, trading names, websites, contact details, bank accounts (IBAN/OBAN), fixed establishment details, and indicators for electronic interfaces (Article 14a of Directive 2006/112/EC) or VAT groups.
• Exclusion and Deletion Criteria (Annex II): Standardises the reasons for changing the status of a taxable person or intermediary in the register, covering cessation of activities, failure to meet conditions, voluntary withdrawal, and persistent non-compliance.
• VAT Return Structure (Annex III): Provides a comprehensive breakdown of the VAT return form, including:
• General information (VAT ID, tax period, unique reference number).
• Sections for supplies/transfers from the Member State of identification and from other Member States, broken down by Member State of consumption, taxable amount, VAT rate, and total VAT.
• Specific provisions for “adjustment of deduction to goods that have been transferred in accordance with the transfer of own goods scheme.”
• Sections for corrections to previous returns and the overall balance of VAT due.
• Tax Period Variation: Clarifies that “For Union and Non-Union schemes, tax period relates to calendar quarters… For import and transfer of own goods schemes, tax period relates to calendar months.” (Annex III, footnote 1).

4. Important Facts and Application Dates

• Legal Basis: Rooted in the Treaty on the Functioning of the European Union and Council Regulation (EU) No 904/2010.
• Amending Instrument: Amends Commission Implementing Regulation (EU) 2020/194.
• Entry into Force: The Regulation “shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.” (Article 4).
• Application Dates:Articles 1 and 3: “shall apply from 1 July 2028.” This means most of the detailed amendments to definitions, identification, registration, VAT return submission, and the full replacement of Annexes I, II, and III will be effective from this date.
• Article 2: “shall apply from 1 January 2027 until 30 June 2028.” This specific article refers to an interim amendment to Annex I, indicating a phased transition for certain aspects of the identification details.

5. Conclusion

Regulation (EU) 2026/1869 represents a significant update to the practical implementation of VAT special schemes in the EU. Its focus on harmonisation, enhanced data exchange, and detailed electronic reporting mechanisms aims to streamline VAT compliance for businesses operating across Member States, particularly concerning distance sales, services, and the newly integrated “transfer of own goods scheme.” Businesses and tax authorities must prepare for its phased application, with the most substantial changes coming into effect by 1 July 2028.

 

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