Market leading insight for tax experts
View online issue

EU Parliament report on new VAT OSS for online sales

printer Mail

The EU Parliament’s economic and monetary affairs (ECON) committee has published its draft report endorsing new rules to make online marketplaces responsible for VAT on sales of goods they facilitate and extend the EU VAT MOSS into a one-stop-shop (OSS) for sales of goods as well as services from 2021. These changes form part of the EU’s VAT e-commerce package.

The new rules will treat online marketplaces as the seller in respect of goods with a value up to €150 sold via their platforms by non-EU businesses to customers in the EU. The same rules will apply when non-EU businesses use online platforms to sell goods from fulfilment centres in the EU, irrespective of their value. Online platforms will also have to keep records of sales made by businesses.

The existing EU VAT mini one-stop-shop (VAT MOSS) will be extended into a one-stop-shop (OSS) covering all types of services, as well as intra-community distance sales of goods and distance sales of goods imported from non-EU countries with effect from 1 January 2021.

The ECON committee report endorses amendments made by ECOFIN in March 2019 to the European Commission’s original proposal. The Commission’s proposal, published in December 2018, contained an amending directive and implementing regulation, forming the second part of the VAT e-commerce package first introduced in December 2017. The first part of the package, which took effect from January 2019, introduced new thresholds and certain changes to the existing non-Union VAT MOSS.


Issue: 1458
Categories: News