Under the term One-Stop-Shop (OSS for short), the EU takes into account the technological change and the increasing importance of online trade and creates a uniform framework for turnover taxation in the European Union. Since 01.04.2021, businesses can already register for OSS. The first VAT returns will then be possible for the period from 01.07.2021.
What the reform essentially takes into account, we would like to briefly show you here:
Uniform threshold value regulation
From 01.07.2021, the individual supply threshold regulation of the EU countries will cease to apply. This will be replaced by the distance selling regulation. In addition, a uniform threshold value regulation of € 10,000 per year will come into force for consignments of goods and certain services within the EU.
Distance selling regulation
In future, the VAT of the country to which the goods are delivered will apply to end customer deliveries. If a company exceeds the new de minimis limit per year due to its sales, it must calculate the VAT using the country-specific VAT rates.
Value Added Tax Report
In future, the VAT declaration can be made uniformly for all EU supplier countries to the local tax authorities via a website provided. This means, for example, that a German mail order company that has exceeded the de minimis threshold in at least one EU country and has registered for the procedure will only have to report and pay B2C VAT to the Federal Central Tax Office (Bundeszentralamt für Steuern, www.BZSt.de) on a quarterly basis. The application for a separate VAT ID, the individual reports and the payment per country of delivery are therefore no longer necessary.
Note: The other monthly tax return is still required! A permanent deadline extension is not possible.
What does this mean for my ERP solution - Microsoft Dynamics NAV / Dynamics 365 Business Central / KatarGo?
You are already using the KatarGo industry solution for wholesale and mail order based on Business Central (or NAV) and want to use OSS in the future? We would be happy to advise you here regarding set-up and processes.
Do you need further information?
Talk to your tax advisor and let us advise you. You can also find further information at the Federal Central Tax Office and in summary form in the EU Commission's explanatory notes on VAT regulations for e-commerce.
Note: This article is for information purposes and reflects the opinion of the author. The text does not constitute tax advice.