A new one-stop-shop for VAT simplifies the declaration and payment procedures for professionals who carry out e- commerce transactions for individuals in the European Union. This window concerns sales of goods or services of any type, made directly, or through intermediaries and marketplaces. Indeed, from July 1, the majority of transactions will be taxable in the Member State of consumption.
Distance selling (VAD)
Until now, online sales of goods or services made by professionals to individuals (B to C) were subject to VAT at the rate of the seller’s country of establishment.
Beyond a certain sales threshold (from 35,000 to 100,000 € per year depending on the country), transactions were subject to VAT at the rate of the country of destination. The seller then had to register for VAT in that state.
The procedures and declarations were therefore complex, depending on the amount and destination of the services. Above all, companies had to register in the countries in which they carried out operations.
The finance laws for 2020 and 2021 have transposed the European directive of December 5, 2017 reforming the VAT on electronic commerce.
From 07/01/2021, the thresholds per country are replaced by a single turnover ceiling of € 10,000. If this threshold is exceeded, the VAT to be refunded in each Member State by the seller may be declared and paid at a one-stop shop in a single Member State. This will prevent businesses from having to register in each state.
Companies will thus be able to declare and pay for their transactions to the tax administration of a single Member State. Thus, the VAT due to each of the Member States will be regularized with the registration tax administration.
Access to this new, optional counter, called OSS-IOSS (for “One-Stop-Shop – Import One-Stop-Shop”), is made in the professional tax area, on the tax site, from 22 April. You can subscribe to the “EU VAT Counter” service by clicking on the “I subscribe” link. Then, on the next page, in the “procedures” section, by clicking on the “EU VAT counter” link.
Distance selling of imported goods under € 150 will now be subject to VAT.
(In addition, the VAT exemption currently applying to imports of goods whose value does not exceed € 22 will also be removed from July 1. In order for VAT to be collected, all imports into the EU will need to be declared at the border through an electronic custom declaration).
Sellers established outside the EU
Domestic or intra-community deliveries of goods made by a seller not established in the European Union through an electronic interface will also be liable for VAT.
VAT on these transactions can therefore also be returned to each State of consumption. And this, through the IOSS one-stop shop. (for “Import One-Stop-Shop”).
Since 2015, companies providing electronic services, telephony, broadcasting and television have had their own “VAT mini one-stop shop”. (called MOSS, for “mini-one stop shop”). It will be integrated into the “new single window OSS – IOSS” from July 1, 2021.
The last reporting period runs from July 1 to 20, 2021. Subsequently, the registrations of these companies in MOSS will be automatically integrated into the new one-stop-shop of VAT for e-commerce. (in the corresponding scheme).
These are the following benefits and services:
- fixed or mobile telephony, provision of Internet access, videophone,
- retransmissions of audiovisual programs on the Internet,
- download of applications, music, e-books, software, video games,
- video on demand,
- online auction
The case of marketplaces
European legislation on the payment of VAT requires companies present on the web to comply. Their presence on marketplaces will therefore be subordinate:
- at the option of the “OSS -IOSS” regime,
- as well as obtaining a document confirming this option,
and this, even if they do not have any commercial activity with such or such country. (EU or non-EU).
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