EU ViDA Single VAT registration July 2028 update

Preparations July 2028 Extension of OSS return for cross-border movement of own goods: B2C e-commerce; and B2B call-off stock

The full EU VAT in the Digital Age (ViDA), which Single VAT Registration (SVR) is one of three pillars, enters into force from 14 April 2025. The SVT launch timetable is now:

• 2025:  defining the (IT) impacts for the implementation of these SVR; and revision of the implementing acts, explanatory notes and guides for member states’ useage;
• 2026: implementation including functional specifications, technical specifications, development and testing; Review of explanatory notes/ OSS guidelines/ OSS portal;
• Jan 2027: go live OSS minor modifications (see below);
• July 2028: go live extension of One-Stop Shop OSS VAT return to further B2C and B2B stock (see below). IOSS transaction number to secure against fraud.

January 2027 OSS minor modifications

• Supplies of natural gas, heating and cooling energy cross-border are deemed distance sales as so may be reported in OSS.
• The rules on the calculation of €10,000 intra-community distance sales of goods and TBE (telecoms; broadcast; electronic) services may only include supplies from the country of establishment. But with OSS option for the place of supply to be determined in accordance with Article 33 (Member State of final destination)
• Harmonise minor differences on timing of chargeable events in the Union and non-Union schemes.
• Clarify that the non-Union scheme covers B2C services provided in the EU to any customer and not only to EU established customers

July 2028: Extension of OSS for B2C and B2C own stocks

• The extension of the OSS return to e-commerce and own stock movements across EU borders. This will enable hundreds of thousands of e-commerce sellers and B2B businesses to significantly cut their foreign VAT registrations and associated costs.
• For non-EU established businesses, the member state of identification for OSS registration will be the country of dispatch of goods.
• OSS will be extended to: supply and install; goods sold aboard ships, trains and aircraft, and energy through systems. This will also include a range of zero-rated supplies and some exempt suppliers (e.g. diplomatic or consular).
• The proposal to make mandatory the use of the Import One-Stop Shop IOSS single return for B2C imported sales has been dropped from ViDA. But there are a number of other IOSS changes likely 1 March 2028:
  • Additional information to be provided prior to importation between marketplaces and e-commerce merchants and the customs officials.
  • Marketplaces to maintain list of underlying suppliers (for IOSS and OSS)
  • Report in the monthly IOSS the final country of destination for the goods.
  • Provide Customs with IOSS registration information.
• Note: OSS and IOSS may not be applied with the 2025 SME scheme for VAT registration thresholds.
• Call-off stock withdrawal as traders will be able to use OSS. No new call off stock arrangements may be used from 1 July 2027. Goods already transferred prior to this date, and still not released, conditions will cease to apply on 30 June 2028.

• The proposed harmonisation of the non-resident B2B domestic reverse charge (Article 194) rules will go ahead, but it has been modified to give member states some flexibility. Member states will be required ‘shall’ apply the reverse charge when a non-resident supplier supplies a customer that is VAT registered in the country. But Member States are given flexibility if they wish to adopt different rules to apply the reverse charge. For instance, applying the reverse charge only when the customer is established in the Member State that the VAT is due. Margin scheme supplies and works of art are excluded. Such transactions must be disclosed on the ESL.

VAT Filer reporting for OSS extension

VAT Calc’s global returns reporting app, ‘VAT Filer’, has been developed with the EU’s VAT in the Digital Age reforms in full focus, the extension of OSS for own stocks and other supplies. And since VAT Filer is built on the same single platform as our VAT Calculator tax engine product, there is full reconciliation on VAT return reporting.

EU VAT in the Digital Age reforms