July 1st 2021: Changes payment VAT EU and the OSS
Since 2015 the Mini One-Stop Shop (MOSS) scheme has been enforced in the EU. MOSS ensures that companies which provide electronic services in the EU are able organise the VAT declaration for various European Union countries in one central place. This service will be accessible for a larger group of companies starting July 2021. Mostly online vendors (B2C e-commerce) can make use of the new One-Stop Shop (OSS).
What is The OSS?
The OSS scheme is an electronic system that should simplify 95% of the VAT obligations for vendors within the EU, according to the European Commission. What makes it easier is that it will be possible to organise the VAT declaration for shipments to various EU countries from one central location, starting July 1st 2021. For example, when you have a webshop that delivers to customers in three different Eu countries, you can then take care of your VAT payments outside of the country that you are based in, in one central electronic declaration. So you will no longer have to declare in each EU country separately.
Who is the OSS meant for?
As of July 1st 2021, in addition to the users of the current MOSS system, more entrepreneurs can make use of the One-Stop Shop scheme, The digital counter is then accessible for entrepreneurs established in the EU that provide goods or services to other EU countries. But do note that the One Stop Shop does not apply to all sales. The OSS is only meant for the payment of VAT for clients that do not pay VAT themselves (usually private individuals, but also companies that are exempt from VAT).
When do you have to pay VAT in a different EU country?
You will only have to pay VAT in other EU Countries when your sales exceed a certain threshold amount. Below this amount you only pay VAT in The Netherlands. Until July 1, 2021 that threshold amount has been dependent on the EU country where you are selling. You will have to figure out per country from what amount you will need to pay VAT outside The Netherlands. As of July 1, 2021, this system of threshold amounts per country expires. Instead, a standard threshold amount of €10.000 for all EU countries applies.
Pay attention: This new threshold amount is lower than the old threshold amounts. It is possible that you did not have to pay VAT to other EU countries before, but you will have to with the new scheme. In addition, the exemption of VAT on import up to €22,- expires. From that moment you will have to pay VAT for goods under this amount.
How to make use of the OSS
Using the OSS is not an obligation. When you do not register for the One-Stop Shop system, you will have to keep doing your VAT declaration for each separate EU country. When you prefer to organise your VAT payments centralised in the OSS, you will have to register for the Union Scheme that has been included in the OSS system. The Union Scheme is applicable to companies established in the EU and that provide to other EU countries.
You can also make use of the Non-Union Scheme within the OSS when your company provides goods or services to EU countries, but you are not established in an EU country yourself.
Beside the Union Scheme and non-Union Scheme, the OSS consists of the Import Regime: Do you provide goods with an origin from outside the EU? And do these goods have a value of €150,- or less? Then you can make use of the import regime that has been included in the OSS.
To make use of one of the above-mentioned schemes in the One-Stop Shop system, you will need to log in the ‘Mijn Belasting Dienst Zakelijk’. If you have not used this portal earlier, you can read about it here (in English). You can register for the One-Stop Shop system, starting April 1st 2021.
On the website of the European Commission you can read more about e-commerce and services in the European Union, the changes in the VAT legislation and the OSS.
The Dutch Tax Authorities have developed a tool (in Dutch) which you can use to research what the consequences are for your company in regard to the VAT, starting July 1st 2021.
The Tax Authorities also provide English speaking entrepreneurs with extensive information about VAT in The Netherlands.
*Need help navigating Dutch websites? We are happy to help you!