Skip links

Finland delays OSS penalties for 35,000 foreign traders on IT issues

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.

The EU is looking at extending the OSS to other B2C and B2B sales as part of the VAT in the Digital Age reforms.

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 B2C own stock movements Following the 1 July 2021 introduction of the One Stop-Shop (OSS), can this be extended to cover further cross-border B2C and 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 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
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 - 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
EU VAT Treatment of Platform Economy update

Newsletter

Get our latest news right in your mailbox