New VAT rules come into place from 1 July 2021, where a business either
New VAT rules come into place from 1 July 2021, where a business either:
- sells Goods online (ie, distance sales) to customers in other EU Member States (MS) who are not VAT registered in that MS, or
- sells Services to customers in other EU Member States (MS) who are not VAT registered in that MS
What has happened up to now is that the Irish business had been obliged to register for VAT in each MS into which they sold such goods/services.
What will happen from 1 July 2021 is that the business will be able to register for a new online tool, called the VAT One-Stop Shop (OSS). This can be done through ROS and the registration portal is already open. OSS VAT returns will be submitted quarterly.
The VAT due in all Member States, on supplies covered by the OSS, will be declared and paid to your Member State of registration (ie, Ireland). If the OSS is not availed of, the business will continue to be required to register in each Member State into which they make such supplies.
This is a very welcome development in terms of compliance and administrative costs. It is an extension of the Mini One Stop Shop (MOSS) VAT system, which has been in place for the past number of years, but which had limited application.
A link to Revenue’s guidance notes on the OSS is: VAT eCommerce Rules – 1 July 2021 – [VAT eCommerce Rules – 1 July 2021] (revenue.ie) Please note that these guidance notes also cover new requirements to non-EU based businesses who are selling in to the EU.
If you need any assistance with regard to the OSS, please call your usual PSC contact.