MOSS turning into a OSS
February 5, 2020
It is estimated that online sales in EU are worth €550 billion a year – €96 billion of which is cross-border.
Since 2015, a simplified Mini One Stop Shop (MOSS) system is in place to declare and pay VAT on business-to-consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services in the EU. Following 2021, scope of MOSS will be extended turning it into a One Stop Shop (OSS), therefore, requirement to declare and pay VAT on to B2C supplies of services will be extended not only to TBE services but also to all other services, Intra-EU distance sales of goods, certain domestic supplies of goods facilitated by electronic interfaces and to distance sales of goods imported from third countries and third territories in consignments of an intrinsic value of maximum EUR 150:
What is more, businesses operating electronic interfaces such as marketplaces or platforms will, in certain situations, be deemed for VAT purposes to be the supplier of goods sold to customers in the EU by companies using the marketplace or platform. Consequently, they will have to collect and pay the VAT on these sales.
EU is estimating that the new rules will raise €7 billion in VAT revenues for Member States from its introduction of OSS.
According to EU, the main features of OSS are: