IOSS Seminar (online)
Hosted by Essentia Global Services/Deeks VAT Consultancy on Thursday 10th June at 11.30am to 12.30pm
On 1 July 2021, the European Union (EU) will introduce sweeping reforms to the VAT obligations for B2C e-commerce sellers and marketplaces.
These changes include:
- launching the EU VAT Return One Stop Shop;
- Closing the €22 import VAT exemption loophole with a new IOSS return; and
- making marketplaces deemed suppliers for VAT purposes.
While this might sounds welcome, convenient, and ideal, there are many actions and processes that businesses need to have ready before 1 July 2021 in order to be prepared, and make the most of the changes to come.
EU VAT Return One Stop Shop
When the 1 July reforms come into effect, the existing “Distance Selling Threshold” will be withdrawn.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. In addition to distance selling, B2C service and event organisers may also use OSS.
Closing the €22 import VAT exemption loophole
From July 2021, the €22 VAT exemption on small parcels being imported into the EU for delivery to consumers will be withdrawn. Instead, VAT must be charged at the point of sale for consignments not exceeding €150. This VAT can be declared and paid via a new submission, the ‘Import One Stop Shop’ (IOSS).
Marketplaces become the deemed supplier and VAT collector
In the last of the major headlines, the new rules will oblige marketplaces which facilitate cross-border sales to consumers via third parties to become the ‘deemed supplier’ in certain cases.
If you’d like to attend this event and prepare for these changes,