Introduction to E-Commerce, MOSS, OSS and IOSS
Changes to MOSS from 1st July 2021 (from Revenue.ie)
Currently VAT MOSS applies only to the supply of telecommunications, broadcasting and electronic (TBE) services. However, from 1st July 2021 VAT MOSS is being extended to a One Stop Shop or OSS. The two schemes currently covered by MOSS, the Union scheme and Non-Union scheme, will remain in place, but their scope will be extended.
From 1st April 2021, eligible business may opt to register for these schemes in advance of the go live date of 1st July from the revenue website.
What is the OSS?
OSS is an extension of the current Mini One Stop Shop (MOSS) scheme. It simplifies the VAT obligations for business selling goods and services to final consumers in the EU.
Currently, only business to consumer (B2C) supplies of telecommunications, broadcasting and electronic (TBE) services are covered under MOSS.
The scope of supplies that may be recorded in MOSS, now the OSS, will be extended. The supplies in scope will include the cross-border supply of services on a B2C basis to a Member State where the supplier is not established, intra-Community distance sales of goods and certain domestic supplies of goods. Under the OSS, a business supplier will be permitted to register electronically in a Member State. This registration will enable the supplier to declare cross-border B2C supplies of services and intra-Community distance sales of goods in the EU.
The VAT due in all Member States on supplies covered by the OSS, will be declared and paid to the Member State of registration in a quarterly return. If the OSS is not availed of, the supplier will be required to register in each Member State in which they make supplies to consumers. The Union scheme and non-Union scheme will continue under the OSS, but the scope of transactions which can be declared under these schemes will be extended.
The non-Union scheme will only be available for taxable persons that have no business establishment or fixed establishment in the EU. Those taxable persons will be able to register for the non-Union scheme for the purpose of declaring B2C supplies of services to consumers in the EU. Suppliers eligible to register for this scheme, i.e. those that are not established in the EU, will be able choose to register in any Member State.
The scope of the Union scheme will be extended to cover cross-border B2C supplies of services to consumers in the EU, where the supplier is established in the EU, and intra-Community distance sales of goods in the EU.
EU established suppliers will be able to use the Union scheme to declare VAT on cross-border B2C supplies of services in the EU and intra-Community distance sales of goods.
Non-EU established suppliers may register for the Union scheme, but only in respect of intra-Community distance sales of goods. Supplies of B2C services can only be declared through the non-Union scheme by non-EU established suppliers. As such, a non-EU established supplier may be simultaneously registered in the Union scheme in relation to their intra-Community distances sales of goods and registered in the non-Union scheme in relation to their B2C supplies of services.
An electronic interface facilitating a domestic B2C supply of goods, as a deemed supplier2 , will also be able to declare those supplies under the Union scheme. The declaration of domestic supplies of goods under the OSS is limited to deemed suppliers alone. Other suppliers are not covered by this rule and as such will not be able to declare domestic supplies of goods using the OSS.
Who is affected?
The changes affect you if your business:
- Sells or supplies goods from Northern Ireland to non-VAT registered customers in the European Union (EU).
- Makes supplies of goods from the EU to non-VAT registered customers in Northern Ireland.
- Sends low value goods to Northern Ireland (or the EU) from outside the EU and Northern Ireland, including from Great Britain – England, Scotland and Wales.
- Is a non-EU business with goods located in Northern Ireland at the point of sale.
It also affects online marketplaces that facilitate the sale of goods:
- Located in Northern Ireland (or the EU) by non-EU businesses to non-VAT registered customers in EU and Northern Ireland consumers.
- From Great Britain to consumers in Northern Ireland and the EU.
- MOSS details on Revenue
- OSS/IOSS details on revenue
- Revenue – What is MOSS?
- VAT Mini One Stop Shop: Union details on GOV.UK
- VAT Mini One Stop Shop: Union Return guides details on GOV.UK
- VAT Mini One Stop Shop: Non-Union Return details on GOV.UK
- VAT Mini One Stop Shop: Non-Union Return guides details on GOV.UK
- Register for the VAT Mini One Stop Shop Scheme details on GOV.UK