EU VAT reforms 2021
2021: One-stop shop (OSS)
single EU VAT return
From 1 January 2021, member states have
agreed to extend the existing mini one-stop shop (MOSS) single EU VAT return
for pan-EU B2C sales of e-services to online sales of all goods and services to
consumers. Non-EU sellers may also benefit from the OSS single filing. They are
required to complete a full VAT registration in a single country of their
choice; this is typically where they import goods into the EU. They may then
file an OSS return in that country to cover distance sales across the rest of
the EU.
Using the Netherlands as your point of
entry into the EU has some advantages like the Reverse-charge mechanism on
import: Article 23
The reverse-charge mechanism on import
means that you are not required to pay the VAT on import immediately. The VAT
can then be paid when you file your VAT return. In order to do this, you will
need an Article 23 permit. As foreign entrepreneur, you are not able to apply
for an Article 23 permit yourself. However you can engage a tax representative
for this purpose. This representative can apply for a permit for you.
If you do use a tax representative, then
you will not need to register with us. The tax representative will declare the
VAT that you are required to pay on the VAT return for that period. The
representative will deduct this VAT as input tax on the same VAT return. Then
you will not be required to pay this VAT in advance on import.
Kennispunt is a VAT and
e-commerce specialist based in the Netherlands we can take care of your VAT
issues in Europe to make selling in Europe a lot easier for you. Questions about this article or interested to
check what we can do for you contact us through our website: https://www.kennisunt.eu/contact or give us a call at
00316-24866797
2021: Ending €22 import
VAT exemption; new IOSS return
From 1 January 2021, EU states will
withdraw the low-value consignment stock relief. This provides an import VAT
exemption for goods at or below €22 originating from outside the EU and being
sold to EU consumers. This exemption applies to online purchases by EU shoppers
buying goods from the US, China or elsewhere outside of the EU. From 2021,
instead of VAT on these shipments of goods from outside the EU being collected
at the point of import, it will be charged and collected by the seller at the
point-of-sale. Typically, online at the checkout process.
This will be supported with the launch of
a new import VAT declaration scheme for goods at or below €150 (see below).
These two measures combined, will mean more efficient and speedy clearance –
‘green lane’ – for low value imported goods through customs. This will help sellers
and provide a better experience for EU consumers.
Import
one-stop shop VAT (IOSS) declaration
For import sales at, or below €150,
sellers will have to declare the VAT charged on imported packages in a new VAT
declaration, the import one-stop shop (IOSS). Imported goods with a value above
this will have to be reported through a regular VAT return if the seller wishes
to declare and recover the import VAT which will be collected at customs as is
the current process. All imported sales below €150 across the EU may be
declared in the single IOSS. The VAT rate applied for each sales transaction
should be based on the country of residence of the end consumer. Sellers will
also be able to submit a simplified customs declaration on the
shipments. However, the seller may elect
instead to have their postal operator, courier firm or customs agent collect
the VAT from the customers and remit the import VAT to customs.
2021: Marketplace deemed
supplier EU VAT reforms
From 1 January 2021, online marketplaces
which ‘facilitate’ the cross-border sales of third-party sellers will become
the ‘deemed supplier’ on certain imports and cross-border sales to consumers.
This will oblige the marketplace to first purchase the goods from the seller,
typically on a zero-rated cross border B2B basis, and then make the sale to the
consumer. This second step will oblige the marketplace to charge and report VAT
under its own name – it will become the deemed supplier or principal for VAT
purposes.
The marketplace deemed supplier rules only apply on two types of
cross-border sales models, and where the marketplace has ‘facilitated’ the
sale. The sales models are:
- for goods below €150, first imported by an EU or
non-EU seller, and then distance sold to an EU consumer; and
- for goods of any value distance sold by a non-EU
seller to an EU consumer.
Kennispunt is a VAT and e-commerce specialist
based in the Netherlands we can take care of your VAT issues in Europe to make
selling in Europe a lot easier for you. Questions about this article or interested to
check what we can do for you contact us through our website: https://www.kennisunt.eu/contact or
give us a call at 00316-24866797
