One Stop Shop
and their ramifications
In line with the Council Directive (EU) 2017/2455, the system previously known as MOSS (Mini One Stop Shop) will be converted into OSS (One Stop Shop). The new scheme will result in simplification of tax processes for eCommerce sellers, specifically B2C (Business-to-Consumer) based, as well as other changes. Find out more about the new changes, their ramifications, and whether they will affect selling on Amazon.
Changes in VAT OSS – what are they?
The changes proposed by the Council aim at simplifying tax processes for eCommerce sellers, and provide a variety of solutions which facilitate VAT settlement. In line with the Directive, the VAT OSS system will also include companies providing goods on the basis of B2C. The main change to come involves the method of submitting VAT declarations – the declaration will be limited to only one document for the company’s country of residence. It will include all transactions conducted inside the EU. Until now B2C sales which exceeded certain threshold required additional VAT registration. After the changes are introduced, it will not be necessary, as a single VAT registration submitted by the entrepreneur will include all overseas transactions.
How will VAT OSS changes affect selling on Amazon?
The proposed simplification of VAT declarations may have a significant effect on Amazon sellers. Entrepreneurs cooperating with Amazon will be able to benefit from the solution as long as their goods are stored in warehouses inside the EU. If their goods are stored outside the EU, additional declaration for overseas transactions will be required. Therefore, the changes mainly concern the FBA model.
Changes in VAT OSS postponed
The Member Countries have some time to prepare for the changes to come – according to plan, they are to be enforced in July 2021. Although the new scheme was planned to be introduced at the beginning of 2021, the current economic situation has forced it to be postponed. Thus, the countries of the EU have more time to prepare for the Directive by adapting online trade platforms to the new methods of VAT registration.
However, it is still not conclusive whether the changes in VAT settlements for eCommerce sellers will be enforced in July. Firstly, the European Commission must receive information on national requirements regarding VAT settlements for international transactions from the Member Countries. Many countries may still not have enough time to prepare for the changes. For this reason, it is best to monitor the situation and follow any reports regarding VAT OSS.