New guidance on using OSS to report Northern Ireland to EU B2C sales
The UK’s HMRC has provided new guidance on how UK or other sellers selling goods B2C between Northern Ireland and the EU may register and report to HMRC via the EU One-Stop Shop OSS.
Northern Ireland within the EU VAT regime
As part of the Brexit Northern Ireland agreement (Later Windsor Framework), Northern Ireland remains within the EU single market for goods. This includes VAT obligations.
When a business sells goods from Northern Ireland to consumers in the EU and goes above the distance selling threshold of £8,818 (€10,000), they need to pay VAT on these sales in the country the goods are sent to. This could mean having to register for VAT in up to 27 EU countries.
Instead, they can choose to use the VAT One Stop Shop (OSS) Union scheme to manage the VAT on your distance sales of goods from Northern Ireland to the EU all in one place.
HMRC OSS guidance
The new release covers
- Who can register
- How to register
- What to do after once registered
OSS for non-EU sellers
The EU’s Value Added Tax (VAT) One Stop Shop (OSS) simplifies VAT compliance for non-EU businesses selling goods or digital services to EU consumers. Before the OSS, businesses had to register for VAT in each EU member state where they made sales. The OSS allows businesses to manage their VAT obligations in the EU through a single electronic portal, even if they are based outside the EU.
There are two relevant schemes under the OSS for non-EU businesses: the Non-Union OSS and the Import One Stop Shop (IOSS).
- Non-Union OSS: This scheme is for non-EU businesses that sell services (such as digital services, telecom, broadcasting) to EU consumers. Instead of registering for VAT in each EU country where services are provided, businesses can register for the Non-Union OSS in one EU member state. This single registration allows them to declare and pay VAT on all eligible services sold across the EU. They submit quarterly VAT returns via the OSS portal, which are then distributed to the relevant EU countries.
- Import One Stop Shop (IOSS): The IOSS applies to non-EU businesses that sell goods to EU consumers with a value of up to €150. By registering for the IOSS, businesses can charge VAT at the point of sale, simplifying the customs process and making the purchase more straightforward for customers. Like the Non-Union OSS, businesses registered under IOSS file a single monthly VAT return and remit the VAT through the portal. This eliminates the need for customers to pay VAT upon delivery, speeding up customs clearance.
Overall, the OSS reduces the administrative burden for non-EU businesses, enabling easier compliance with EU VAT rules across multiple member states through a single online interface.
