European Commission regulation delivers the technical framework for the 2027 OSS expansion & 2028 Single VAT Registration reforms
The European Commission has published the first major implementing legislation supporting Pillar 3 of VAT in the Digital Age (ViDA), setting out the administrative and technical rules needed to operate the new Single VAT Registration (SVR) regime across the European Union.
Published in the Official Journal on 28 July 2026, Commission Implementing Regulation (EU) 2026/1869 amends Implementing Regulation (EU) 2020/194, updating the operation of the EU’s VAT special schemes, including the Union One Stop Shop (OSS), non-Union OSS, Import One Stop Shop (IOSS) and the new Transfer of Own Goods (TOOG) scheme.
Supporting both phases of ViDA
The regulation does not introduce any new VAT obligations. Instead, it provides the practical framework that allows Member States to administer the Single VAT Registration reforms consistently through common registration procedures, electronic reporting and standardised VAT return formats.
It supports both implementation phases of Pillar 3:
- 1 January 2027 – administrative changes supporting the initial expansion of the Union OSS.
- 1 July 2028 – implementation of the wider Single VAT Registration reforms, including the new Transfer of Own Goods scheme, which is designed to reduce the need for businesses to obtain multiple EU VAT registrations.
Transfer of Own Goods scheme takes shape
One of the most significant elements of the regulation is the introduction of the administrative processes supporting the new Transfer of Own Goods (TOOG) scheme.
Under ViDA, qualifying cross-border movements of a business’s own stock between Member States will be reportable through a simplified OSS mechanism rather than triggering separate VAT registrations in the destination country. The regulation introduces the electronic registration forms, reporting messages and technical specifications needed to administer this new scheme from July 2028.
Administrative and technical changes
The regulation also introduces a range of updates to the operation of the VAT special schemes, including:
- introducing formal definitions for the Transfer of Own Goods scheme and updating the definition of the Union OSS;
- revising business registration procedures, including pre-filled registration information where already held by tax authorities;
- strengthening electronic data sharing between Member States through common registers and trusted exchange tools;
- updating VAT return messages, including reporting rules for transfers of own goods and nil VAT returns; and
- replacing the technical annexes covering registration forms, electronic messages and system specifications.
Preparing tax technology for ViDA
While the changes are largely administrative, they will require tax authorities, ERP providers and VAT software developers to update their systems ahead of implementation.
Businesses already using OSS or IOSS are unlikely to see immediate changes, but software supporting EU VAT compliance will need to incorporate the revised registration processes, message formats and reporting requirements over the next two years.
Next step towards Single VAT Registration
The regulation enters into force 20 days after publication. The provisions supporting the first phase of the reforms apply from 1 January 2027, with the majority of the technical changes taking effect from 1 July 2028.
Although largely unseen by businesses, these implementing rules provide the essential technical foundations for ViDA’s Single VAT Registration pillar, moving the EU another step closer to a harmonised digital VAT compliance framework that reduces the need for multiple VAT registrations across Member States.
