Angela Bedi, VAT expert at Croner-i Navigate, considers the new One Stop Scheme (OSS) scheme, one of three reforms to be introduced across the EU from 1 July 2021 to simplify the VAT accounting and compliance for (mainly) online sellers
On 1 July 2021, the EU will roll out three reforms under the VAT e-commerce package, delayed from 1 January this year, significantly changing the requirements on UK businesses selling goods and services to final consumers in the EU.
(1) One-Stop Shop (OSS) scheme;
(2) Import One-Stop Shop (IOSS) scheme;
(3) provisions relating to online marketplaces (electronic interfaces).
The new measures aim to create a level playing field for all businesses – EU or non-EU, online or traditional – to reduce the opportunity for fraud, and ensure VAT is paid in the member state of consumption.
All goods imported to the EU will become subject to VAT but the IOSS scheme aims to address inefficiencies in the importation of low value consignments that are not subject to excise duty and, in the case of goods sold online, new provisions may deem the electronic interface to be responsible for the VAT due.
