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
|EU VAT in the Digital Age|
|3 reforms to improve efficiency of VAT for all and reduce fraud|
|1. Single VAT registration in the EU; extension of OSS to all B2C and certain B2B||Following the 1 July 2021 introduction of the One Stop-Shop (OSS), can this be extended to cover further cross-border B2C and all / any B2B transactions (e.g. movement of own stock across borders) to reduce the foreign, non-resident VAT registrations and returns burden|
|More details on Single VAT Registration in the EU|
|2. Digital Reporting Requirements; e-invoicing||What options are there to harmonise the digitisation of transaction reporting amongst the member states. The EU is looking at: Continuous Transaction Control (CTC) e-invoicing, live reporting; or Periodic Transaction Controls (PTC) invoice listings. Also if at a country, EU or hybrid-level.|
|Read more about EU Digital Reporting Requirements (DRR)|
|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 - platforms and marketplaces which have enabled millions of private individuals to provide services and goods for the first time. How should the VAT Directive be modified to capture the new dynamics created in the gig and sharing economies, including imposing full deemed supplier VAT obligations on platforms as with 2021 e-commerce package for goods.|
|EU VAT Treatment of Platform Economy update|