This page explains the changes to the distance selling legislation that came into effect alongside the EU One Stop Shop (OSS) single EU VAT return changes.
To learn more about OSS and what is changing please visit our VAT Live page to learn more.
Prior to 1st July 2021, companies that sell goods between EU countries above a certain value are obligated to charge and report VAT in the country of destination.
This is called the distance selling threshold, for most countries the threshold is EUR 35,000. Germany, Italy, Luxembourg, and the Netherlands are the only countries with a distance selling threshold of EUR 100,000. The full list of distance selling thresholds can be found here.
These rules have now changed and from 1st July 2021, distance selling thresholds no longer apply. Companies are obligated to charge VAT in the arrival country on all distance sales.
There is an exemption for EU businesses with sales of up to EUR 10,000. this means the first 10,000. of sales into a country can be made without becoming obligated to charge VAT in the arrival country. However once you make sales above EUR 10,000. the usual distance selling rules apply.
Please note that the thresholds only apply for registrations that include trade prior to 1st July 2021, If you are registering for VAT as an entirely new registration (Trading commenced after 1st July 2021) then the thresholds do not apply.
Filing for OSS and IOSS
Managed VAT Reporting customers can file OSS / IOSS in much the same way as other returns. To provide information for OSS/IOSS returns you must complete the Avatemplate and mark OSS/IOSS transactions by selecting the correct transaction type.
To download the most recent copy of the Avatemplate and learn more about data provision, see this guide.