FINANCE
AN OUTLINE OF THE E-COMMERCE VAT CHANGES: n A One-Stop Shop (OSS) has been introduced to allow VAT to be collected under a single registration, for B2C, intra-EU, distance sales of goods – those that are located in one EU member state and are then sold to consumers in other EU countries – as well as collecting VAT on certain services supplied by non-EU established businesses to consumers. A non-Union OSS scheme exists for similar sales of goods and services but where the seller is not established in the EU. n An Import One-Stop Shop (IOSS) has been introduced for the collection of EU VAT on goods imported into the EU (and where the consignment is up to €150). The existing Low Value C o nsig n m e nt Re li ef ( LVC R) , exempting goods up to €22 from import VAT, has now been removed.
❛❛ Are you actually 'over-doing' your obligations, as these new rules simplify things? ❜❜ n E xisting, member state specific, distance selling thresholds for goods sold B2C within the EU have been removed and replaced with a new EU-wide threshold of €10,000, however, the threshold does not apply to businesses established outside the EU. n Special rules have been introduced in respect of certain B2C sales of goods facilitated via an Electronic Interface (EI) such as an online marketplace whereby, for VAT purposes, the EI is required to collect the VAT due on sale to customers; the EI is deemed to have both received the supply from the supplier and to have made the supply of goods to the consumer.
If you would like to find out if you are impacted by these new rules, then please contact us on 0330 124 1399 or visit www.krestonreeves.com Rupert Moyle, Partner and Head of VAT and Duty rupert.moyle@krestonreeves.com Colin Laidlaw, VAT and Duty Director colin.laidlaw@krestonreeves.com
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