- Jul 10, 2003
- 26,049
I wasn't aware of this thanks. Having read your linked article I did see that it has absolutely nothing to do with the new UK bill and is apparently trying to do the complete opposite of the bill we have just introduced.
When the reforms come into effect, the existing ‘Distance Selling Thresholds’ simplifications will be withdrawn. This will be accompanied by the roll out of a single EU VAT return, One Stop Shop (‘OSS’). Sellers shipping goods from their home country to customers across the EU may opt to use OSS to report all their pan-EU sales. This is instead of the current requirement of being VAT registered in each country once the seller has passed the relevant country distance selling threshold. This is an extension of the 2015 Mini One-Stop-Shop (‘MOSS’), which successfully trialled a single EU return for B2C sales of digital, telecoms and broadcast services (streaming media, e-books, apps etc.)
Implications: It’s important to note that no action is required until 2021. After July 2021, some e-commerce sellers will be able to close their foreign VAT registrations. They can instead complete a quarterly OSS return for their home country’s tax authority. Non-EU sellers may use OSS, too. OSS will list: sales by EU country, VAT % used, and VAT due. This VAT must be paid to the home country’s tax office.
It is trying to do (for EU members) the exact opposite of the bill rushed through parliament on 17th December (the detailed regulations being published a week after the bill was passed
), whereby any company in the EU (and US) supplying into the UK will have to register with UK VAT in order to pay their VAT related to UK sales.The only passing resemblance between the two things are the letters VAT.
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