New, simplified One Stop Shop (OSS) VAT system will go live from July 1st, 2021.
We have described it briefly already (see older post), there will be three basic schemes available:
1. non-Union scheme (services)
Non-EU taxable persons (businesses) will be able to fulfill its VAT obligations from one member state. This will be valid for all services, provided to final consumers within EU.
2. Union scheme (services + distance sales of goods)
EU taxable persons (businesses) will be able to submit one VAT return in their HQ member state for sales to final consumers in all other member states.
3. Import scheme (goods’ import up to 150 EUR)
VAT form shipments up to 150 EUR will not be paid as import duty, but as VAT in the country of final consumer. Small shipments up to 22 EUR will not be exempt from VAT anymore.
There are many benefits for businesses using One Stop Shop schemes above:
- only one VAT ID number in a member state of seller’s choice;
- significant reduction of compliance costs;
- only one VAT accountant for EU.
We recommend using Slovenia as a member state for VAT identification, mainly due to following reasons:
- well established electronic VAT platform of Slovenian Financial Authority;
- quarterly reports are due at the end of the month following a quarter;
- reasonable compliance costs.
We are experienced in VAT compliance services, we act as VAT representatives for EU and non-EU clients. Please mail as at info@semafor.si or call us at +386 8 2055 950 to receive our offer.