2025 VAT in the Digital Age build on OSS returns for services
The EU e-commerce VAT package on 1 July 2021 simplified VAT on distance selling of goods with the new One-Stop-Shop OSS VAT return. The VAT in the Digital Age reform pillar on Single VAT Registration will build on this to add movements of own stocks for e-commerce and call-off stock.
But it’s not just goods that now benefit from OSS – sellers of a range of B2C services, including tickets to events, may now also opt to use OSS instead of having multiple VAT numbers.
What B2C services may now be reported through OSS
OSS covers B2C goods and Telecoms, Broadcast and Electronic (TBE) services (see below MOSS). But since 1 July 2021, it also covers all services to EU consumers. The range of consumer sales this included providers can report through OSS include:
- Hotel and similar overnight accommodation;
- Immovable property services (e.g. architectural services; building work; repairs; legal work)
- Services, including valuation, on movable, tangible property
- Tickets to concerts, sporting, entertainment, cultural, amusement parks and fairs; and
- Telecoms, broadcast and electronic services (TBE) – see below.
OSS €10,000 registration threshold
Providers of consumer goods and services are not obliged to follow the new destination VAT obligations if their sales across all EU states (excluding their home EU state) do not exceed €10,000. This OSS VAT registration threshold was set in 2019 for the MOSS digital services regime.
OSS extending Mini One-Stop Shop
OSS itself is an extension of the Mini One-Stop Shop single pan-EU return for B2C sales of digital or e-services. MOSS was introduced in 2015 when the EU made VAT on such sales due in the country of the consumer – the destination principle. Prior to this, electronic services were liable to VAT in the country of the provider.
The idea is that instead of having to VAT register in each country where a seller has a customer and where VAT is due, they can instead opt to report all their sales in the different countries in a quarterly OSS return. For EU sellers, this is in their country of residence, and the OSS is filed in a similar way to their domestic VAT return. For non-EU sellers, they select a ‘member state of identification’, which can be any of the 27 member states, and register and file OSS there.