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Distance sales: guidance on the OSS Union Scheme

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HMRC has published two new guidance notes explaining how businesses registered for the one-stop shop (OSS) Union Scheme should complete and submit the OSS return and pay any VAT due.

Businesses which sell goods from Northern Ireland to consumers in the EU (where the value of the sales exceeds the distance-selling threshold of €10,000) will either need to register for VAT in each individual EU member state where they make sales, or use the OSS Union Scheme.

Submit your one stop shop return and VAT payment explains that businesses must submit a return and pay the VAT owed by the last day of the month following the end of each quarter. Businesses must submit a nil return if there are no goods sold in the EU during a tax period. Businesses run the risk of being excluded from the OSS if they miss the return and payment deadlines for three consecutive periods and do not submit their return or make payment within 10 days of a reminder being sent.

The OSS VAT return service will be available from 1 October 2021. To submit a return, businesses will need to sign into the government gateway, access the OSS service and select the option to complete a return.

Businesses are required to keep records of all eligible OSS sales for ten years. The record-keeping requirements are now covered in HMRC’s guidance Check how to report and pay VAT on distance sales of goods from Northern Ireland to the EU.

Issue: 1546
Categories: News