Irish Revenue has issued eBrief No. 070/21 on new guidance concerning pre-registration for the One Stop Shop (OSS) and Import One Stop Shop (IOSS) from 1 April 2021. The expansion of the current Mini One Stop Shop (MOSS) to the OSS and the introduction of the IOSS will go live from 1 July 2021. These changes are being made in relation to amendments to the VAT Directive to simplify VAT obligations as regards eCommerce activities.
One Stop Shop (OSS)
The OSS is an extension of the current Mini One Stop Shop (MOSS) scheme. It simplifies the VAT obligations for businesses selling goods and services to final consumers in the European Union (EU).
Currently, only business to consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services are covered under MOSS. The scope of supplies that may be recorded in MOSS, now the OSS, will be extended. The supplies in scope will include the cross-border supply of services on a B2C basis to a Member State where the supplier is not established, intra-Community distance sales of goods and certain domestic supplies of goods.
Under the OSS, a business supplier will be permitted to register electronically in a Member State. This registration will enable the supplier to declare cross-border B2C supplies of services and intra-Community distance sales of goods in the EU.
The VAT due in all Member States on supplies covered by the OSS, will be declared and paid to the Member State of registration in a quarterly return. If the OSS is not availed of, the supplier will be required to register in each Member State in which they make supplies to consumers.
The Union scheme and non-Union scheme will continue under the OSS, but the scope of transactions which can be declared under these schemes will be extended.
Import One Stop Shop (IOSS)
The Import One Stop Shop or IOSS, is a new special scheme for reporting distance sales of goods imported from outside the EU.
From 1 July 2021, the current low value consignment VAT relief threshold of EUR 22 will be abolished. This means that VAT will be due on all goods imported into the EU regardless of their value.
The purpose of the IOSS is to facilitate the declaration and payment of import VAT on low value goods. Under this scheme a supplier selling goods from a third country or third territory to customers in the EU, can charge VAT at the point of sale to the customer and declare and pay this VAT via a monthly return under the IOSS.
If the IOSS is used, the VAT due is included in the purchase price paid by the customer and the importation of the goods into the EU is treated as exempt from VAT.
The IOSS can only be used where the goods, excluding goods subject to excise duty, are dispatched by or on behalf of the supplier from a third country or third territory at the time they are supplied and the intrinsic value of the consignment does not exceed EUR 150.