No fines for late payments for non-residents due to pan-EU IT issues on new One Stop-Shop returns
The Finnish tax office, Verohallinto, will not be issuing late return notices or imposing penalties for late payments on One Stop-Shop VAT returns between March and September 2022. This affects non-resident sellers or deemed supplier marketplaces using Finland as their member state of identification (registered there) or filing OSS elsewhere with Finnish customers and VAT.
OSS was introduced in July 2021 as part of the EU e-commerce package for intra-EU distance selling VAT reporting in a single VAT registration. In its first six months, it collected just under €7 billion in VAT revenues across the 27 member states. At 31 December 2021, over 90,000 EU business are registered on OSS, and just over 4,600 non-EU business are on the non-union OSS scheme. Over 8,600 e-commerce sellers and marketplaces are using the related Import One Stop-Shop. There are also almost 1,000 Intermediaries
The penalty suspense is due to ongoing reporting data issues in a number of other countries arising from ongoing IT development issues which makes reconciliation of VAT receipts difficult.
Over 35,000 non-resident companies use OSS in Finland.“As we cannot know whether a company has failed to pay VAT or whether the payments are missing due to transfer delays, we will not send payment reminders to companies that are registered in the OSS system or collect penalties from them,” says Lauri Taskinen, Tax Specialist at the Tax Administration.
Check our country VAT guides for information on Finland and other jurisdictions.
EU VAT in the Digital Age reforms
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|2. Digital Reporting Requirements; e-invoicing||Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931|
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|3. VAT treatment of the platform economy||How can EU member states adapt their tax systems to reflect the new role taken on by Electronic Interfaces - travel and accommodation platforms to become liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation|
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