With the upcoming new VAT rules for e-commerce entering into force in all EU Member States as from 1st July 2021, the registration for the new OSS returns in Belgium is open as from 1 April 2021.
1. OSS (ONE STOP SHOP)
From 1 July 2021, the thresholds for e-commerce (the supplies of goods to private individuals in other EU Member States) will cease to exist. This implies that online sellers will have to charge VAT of the country of the customer (consumption) as from the first supply.
Regardless whether you are established in the European Union or not, you will be able to account for the VAT due in the various EU Member States via a single OSS return that you file in only one EU Member State, instead of having to register and submit VAT returns in each EU Member State where the threshold was exceeded.
Although these changes create a new administrative burden, as the correct VAT rates of each EU Member State where potential customers are located need to be incorporated in your ERP system and correctly allocated to each shipment, the use of the OSS return will decrease the VAT compliance obligations (and costs!) in the various EU Member States.
Online sellers may register for three different schemes, but can only have one Member State of identification per scheme:
- The non-Union scheme: any taxable person, not established in the EU, who supplies services to non-taxable persons taking place in the EU;
- The Union scheme: cross-border supplies of services and intra-Community distance sales of goods to non-taxable persons in a Member State in which the supplier is not established;
- The import scheme: distance sales of goods imported from a third country to non-taxable persons, for consignments not exceeding 150 EUR.
3. MEMBER STATE OF OSS IDENTIFICATION
Belgian established online sellers should apply for the OSS registration via the Belgian Intervat application.
Online sellers which are not established in the EU can choose any Member State to be the Member State of identification, but if goods are dispatched from one EU Member State to another, the registration should be requested in the (or one of the) Member State (s) where the dispatch or transport of the goods begins.
If these non-EU online sellers want to register for the import scheme (IOSS), an EU intermediary will have to be appointed, unless goods are imported from a third country with which the EU has concluded an agreement of mutual assistance for the recovery of VAT.
4. HOW CAN RSM HELP YOU?
Prepare in due time for the 1st of July 2021, by mapping your online sales and flows of goods (or services) and updating you ERP system so the correct VAT rates are allocated to each supply.
Determine where and how to register for OSS (and which schemes) and consider which VAT identification numbers in other EU Member States can be canceled in order to limit your VAT compliance costs abroad.
RSM is present in all EU Member States (and beyond). Hence, we can help you to reassess the situation and advise you on how to implement these changes wherever needed.
If you would like to receive additional information or assistance on this matter, the VAT team of RSM Belgium is at your disposal ([email protected]).