HMRC has updated its guidance on reporting and paying VAT on distance sales of goods from Northern Ireland to cover businesses whose turnover is below the UK VAT registration threshold.
UK businesses which use the one-stop shop (OSS) to manage the VAT on their distance sales of goods from Northern Ireland to consumers in the EU must be registered for UK VAT. The updated guidance now advises businesses whose turnover is below the UK VAT registration threshold to:
register for UK VAT before they register for the OSS Union scheme; and
choose ‘63990 Distance sales of goods (below UK VAT threshold) for OSS purposes’ to select their business activity when they register.
The guidance also notes that businesses which only register for UK VAT so they can access the OSS scheme will not need to account for VAT on domestic sales until they become liable under the normal UK rules.
HMRC has also issued the following notices relating to the OSS and Import OSS, both of which have the force of law:
Notice made under paragraph 5(3)(b) of Schedule 9ZD to the Value Added Tax 1994 – prescribing that registration requests for the OSS must be made online using HMRC’s VAT OSS portal and that specified information must be provided.
Notice made under paragraph 37(2) of Schedule 9ZE to the Value Added Tax Act 1994 – setting out the requirements to notify HMRC of the registration number issued under an import one-stop shop (IOSS) special scheme, where the supplier imports goods into Northern Ireland under the IOSS special scheme and wishes to claim exemption from import VAT.
HMRC has updated its guidance on reporting and paying VAT on distance sales of goods from Northern Ireland to cover businesses whose turnover is below the UK VAT registration threshold.
UK businesses which use the one-stop shop (OSS) to manage the VAT on their distance sales of goods from Northern Ireland to consumers in the EU must be registered for UK VAT. The updated guidance now advises businesses whose turnover is below the UK VAT registration threshold to:
register for UK VAT before they register for the OSS Union scheme; and
choose ‘63990 Distance sales of goods (below UK VAT threshold) for OSS purposes’ to select their business activity when they register.
The guidance also notes that businesses which only register for UK VAT so they can access the OSS scheme will not need to account for VAT on domestic sales until they become liable under the normal UK rules.
HMRC has also issued the following notices relating to the OSS and Import OSS, both of which have the force of law:
Notice made under paragraph 5(3)(b) of Schedule 9ZD to the Value Added Tax 1994 – prescribing that registration requests for the OSS must be made online using HMRC’s VAT OSS portal and that specified information must be provided.
Notice made under paragraph 37(2) of Schedule 9ZE to the Value Added Tax Act 1994 – setting out the requirements to notify HMRC of the registration number issued under an import one-stop shop (IOSS) special scheme, where the supplier imports goods into Northern Ireland under the IOSS special scheme and wishes to claim exemption from import VAT.
