European Commission proposes 2024 (TBC) quick fixes to the existing e-commerce regime prior to ViDA changes to e-commerce VAT rules from 2025
As part of the VAT in the Digital Age ViDA reforms, the European Commission has proposed the extension of the OSS e-commerce single EU VAT registration to many other B2C goods and services transaction. This will start in January 2025.
Prior to this, the EC has put forward a range of ‘quick fixes’ to the existing regime, much of which was introduced in the July 2021 e-commerce VAT package. These are likely to be introduced in 2024, subject to review and approval, and include:
Refinements to processes
- Making the corrections mechanism for One Stop-Shop OSS VAT return simpler
- Updates on the Standard Audit File (SAF) for OSS
Getting VAT rates right
- How to report zero or exempt sales within the OSS return
Changes to the legislation
- Clarification of the definition of Non-Union Scheme OSS for non-EU sellers of good and services
- New definition of the €10,000 OSS threshold
- Clarification of the refund procedures for the Union and Import (IOSS) schemes
- Explanations of the timing of the chargeable event for Union and non-Union schemes
Fighting fraud
- Providing Customs officials with access the IOSS registration database
- Extending IOSS imports information requirements
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 reforms to improve efficiency of VAT for all and reduce fraud | |
| 1. Single VAT registration in the EU; extension of OSS to B2C own stock movements | 2025 (?): Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Marketplaces deemed supplier for EU sellers | |
| EU IOSS mandated for marketplaces | |
| EU tackles misuse of IOSS numbers | |
| Quick fixes to existing e-commerce VAT rules | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
| 2. Digital Reporting Requirements; e-invoicing | 2030 (?): Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| E-invoices mandated intra-community supplies 2028 | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| 2014 EU legal permissions for e-invoicing lifted | |
| 3. VAT treatment of the platform economy | 2026 (?): Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
