The Financial Administration has recently launched a website for a special scheme placing administration in one place, the so-called One-Stop-Shop (OSS).
This scheme will be launched on 1st July 2021 as part of the amendment to the VAT Act concerning electronic commerce. It is possible to register for the OSS scheme which replaces the Mini-One-Stop-Shop (MOSS) scheme as of 1st April 2021 via the EPO Portal.
New supplies for which the OSS system can be used
At present, the MOSS scheme applies to a very narrow range of transactions, specifically in the area of providing radio and television broadcasting, telecommunications, and electronic services to end consumers (B2C) within the European Union.
Thanks to the amendment to the VAT Act, transactions in the OSS system have been significantly expanded, and it will now be possible to also apply the scheme to other services provided by providers in the EU and outside the EU to end consumers in the EU. In addition to services, it will be possible to apply it to the distance sale of goods via websites or platforms (so-called "e-commerce"). Last but not least, the scheme can also be used for the import of low-value goods, with low value meaning the value of goods up to EUR 150.
How will it work?
The first step is to apply for registration in the EPO Portal. Upon applying, the applicant will get access to the One-Stop-Shop application, and its details will be automatically transmitted to all Member States. After successful registration, the entity will be able to process and submit VAT returns via the European VAT return form within the OSS system. Current users of the special MOSS scheme will be automatically transferred to the special OSS scheme from 1st July 2021 and will be able to continue to use the relevant scheme in the OSS. It should be emphasized that such returns do not replace ordinary VAT returns and are only a supplement to them for supplies in the OSS scheme.
Just as a reminder: the European Commission has already published a guide to the OSS.
The OSS scheme is not mandatory; nevertheless, it represents a significant simplification for providers of selected supplies who would otherwise face non-negligible administrative costs associated with numerous VAT registrations in different countries.