The Value Added Tax (Distance Selling) (Amendments) Regulations, SI 2024/128 amend the scope of the Import One Stop Shop (IOSS) scheme to remove the VAT reporting and accounting requirements for goods moved within the UK. Businesses which choose to use the IOSS scheme will continue to account for VAT on these sales through normal UK VAT returns as they would for any other internal UK sale. All VAT due on these supplies will be accounted for through the UK VAT return.
The Regulations also bring the One Stop Shop (OSS) and IOSS schemes into line with the wider VAT penalties and interest regime introduced on 1 January 2023, ensuring consistent treatment for all types of UK VAT accounting. The Regulations will, however, apply only the FA 2021 Sch 26 late-payment penalty to the IOSS and OSS schemes to ensure that penalties are not issued in cases where businesses have no UK VAT to report and have legitimately chosen not to make declarations. The Regulations come into force on 1 March 2024.
The Value Added Tax (Distance Selling) (Amendments) Regulations, SI 2024/128 amend the scope of the Import One Stop Shop (IOSS) scheme to remove the VAT reporting and accounting requirements for goods moved within the UK. Businesses which choose to use the IOSS scheme will continue to account for VAT on these sales through normal UK VAT returns as they would for any other internal UK sale. All VAT due on these supplies will be accounted for through the UK VAT return.
The Regulations also bring the One Stop Shop (OSS) and IOSS schemes into line with the wider VAT penalties and interest regime introduced on 1 January 2023, ensuring consistent treatment for all types of UK VAT accounting. The Regulations will, however, apply only the FA 2021 Sch 26 late-payment penalty to the IOSS and OSS schemes to ensure that penalties are not issued in cases where businesses have no UK VAT to report and have legitimately chosen not to make declarations. The Regulations come into force on 1 March 2024.
