TAS Consulting

On July 1, 2021, the way VAT is handled for online sales from businesses all over the world to consumers (B2C) in the European Union (EU) changed.

Businesses outside of the EU, including the UK, can benefit from the changes.

One Stop Shop (OSS) and Import One Stop Shop are the two key components of the EU VAT E-commerce Package, which are commonly referred to as the EU VAT E-commerce Package (IOSS).

The EU VAT e-commerce legislation’s goal is to make life easier for ecommerce businesses selling to consumers across national borders in the EU, thereby facilitating trade.

Anyone who has used the Mini One-Stop-Shop (MOSS) for certain types of digital services is familiar with the advantages of this type of simplification.

The new measures broaden MOSS to include more services and goods, including those imported into the EU, potentially simplifying VAT for a wider range of transactions.

It’s important to note right away that neither OSS nor IOSS are required.

Businesses can also register for, account for, and pay VAT in each EU country where they sell to consumers as an alternative.

 Of course, this is inconvenient administratively, which is why OSS and IOSS were created.

It’s also worth noting that these new VAT measures are only applicable to online sales to EU consumers.

 B2B sales of services from a business in the UK to a business in an EU country will continue as before after the Brexit transition period ends on January 1, 2021, i.e., B2B sales of services will be subject to the reverse charge.

Goods exports should be zero-rated, but they will be taxed in the destination country when import VAT is applied.

The first step in determining your VAT compliance requirements is to research Irish VAT legislation. Depending on where and how you trade, TAS Consulting Limited has a variety of solutions that can help you.

If you have any queries, or would like specific advice, then please do not hesitate to contact a member of our team.

call us on +353 (0)1 442 8230, 00353 851477625 or email moh@tasconsulting.ie