EU VAT Services for eCommerce Sellers

From the 1st of July 2021, the EU VAT rules on cross-border business-to-consumer (B2C) e-commerce activities will change with the introduction of new EU VAT eCommerce rules.

The aim of the new rules is to help streamline and speed up the processes for declaring and paying VAT on distance sales goods and cross-border B2C services.

What is changing?

  • The current VAT exemption for goods in small consignments of a value of up to €22 will be abolished and all goods imported into the EU will be subject to VAT.
  • The current Mini One Stop Shop (MOSS) will be extended to a One Stop Shop (OSS).
  • For certain transactions, online marketplaces and platforms will be deemed suppliers.
  • A new Import One Stop Shop (IOSS) will be introduced.
  • Special Arrangements for certain imports of goods will be introduced.

The new rules will come into force on 1 July 2021, but preparation can start right now with our IOSS and OSS service offerings:

Import One Stop Shop (IOSS) ServiceOne Stop Shop (OSS) Service
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Import One Stop Shop (IOSS) Service

The Import One-Stop Shop (IOSS) facilitates the collection, declaration and payment of VAT for sellers that are supplying goods from outside the EU to buyers in the EU.

The IOSS electronic portal simplifies the VAT obligations for these suppliers and electronic interfaces by allowing them to:

  • Register for VAT electronically in a single Member State for all sales of imported goods to buyers in the EU.
  • Declare and pay VAT due on all supplies of goods and services in a single electronic monthly return.
  • Work with the tax administration of one Member State even if their sales are cross-border.

Businesses established in the EU can register directly for the IOSS.

If your business is not based in the EU, you will normally need to appoint an EU-established intermediary to fulfil your VAT obligations under IOSS.

Which supplies can it be used for?

The IOSS covers the sale of goods from a distance that are:

  • Dispatched or transported from outside of the EU at the time they are sold.
  • Dispatched or transported in consignments with a value not exceeding a total of EUR 150 even if the order contains more than one item.
  • Not subject to excise duties (typically applied to alcohol or tobacco products).

Why should a business sign up for it?

One EU VAT Registration

for all distance sales of imported goods made to buyers in the EU.

Easily declare and pay the VAT

due in all Member States via one electronic monthly VAT return and payment to the Member State where you are registered for IOSS.

Goods get to buyers quickly

as you charge VAT to the buyer at the time of the supply and the goods will not be subject to VAT at the time of importation.

Easier process for the buyer

who does not face any surprise fees when the goods are delivered.

How can our IOSS Service help you?

Review your supplies and your supply chain to confirm if you qualify for the IOSS

Advise in which Member State you should register for IOSS

Advise on whether you can register directly or whether you require an EU Intermediary

Provide an EU Intermediary service

Work with our DFK colleagues to register you for IOSS in any EU Member State and prepare and file your monthly IOSS returns

Register you for IOSS in Ireland and prepare and file your monthly IOSS returns

Advise on VAT rates

What if I don’t want to register for IOSS?

If a business chooses not to register for the IOSS, there will be special arrangements for goods in consignments of an intrinsic value not exceeding €150.

Under the special arrangements, the VAT due on import will be collected from the buyer by the postal operator or courier and remitted to the Revenue authorities.

The use of these special arrangements is optional, and they can only be used where the IOSS has not been availed of for the importation of the goods.

One Stop Shop (OSS) Service

The One Stop Shop (OSS) enables businesses to electronically declare and pay the VAT for all their e-commerce sales within the EU to consumers.

The OSS electronic portal simplifies the VAT obligations for these online sellers, online marketplaces and platforms as it allows them to:

  • Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C services.
  • Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return.
  • Work with the tax administration of one Member State even if their sales are cross-border.

Who can use the OSS and for which supplies?

  1. An online seller established in the EU, for:
    • Supplies of services to final consumers taking place in a Member State in which he is not established
    • Distance sales of goods within the EU
  1. An online seller not established in the EU, for:
    • Supplies of services to final consumers taking place in a Member State of the EU
    • Distance sales of goods within the EU
  1. An online marketplace or platform facilitating supplies of goods, for:
    • Distance sales of goods within the EU
    • Certain domestic supplies of goods

What are the benefits of using the OSS?

One EU VAT Registration

for all cross-border sales of goods and services to final consumers within the EU.

Easily declare and pay the VAT

due in all Member States via one electronic quarterly VAT return and payment to the member State where you are registered for OSS.

How can our OSS Service help you?

Review your supplies and your supply chain to confirm if you qualify for the OSS

Advise in which Member State you should register for OSS

Advise on VAT rates

Work with our DFK colleagues to register you for OSS in any EU Member State and prepare and file your quarterly OSS returns

Register you for OSS in Ireland and prepare and file your quarterly OSS returns

Contact a VAT Specialist today:

Siobhán O’Hea

Partner
Tax Services

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