The VAT Directive has been amended to simplify VAT obligations relating to eCommerce activities which include an extension of the VAT Mini One Stop Shop to a One Stop Shop (OSS) and the introduction of a new Import One Stop Shop (IOSS). These new measures are due to enter into force from 1 July 2021. Businesses eligible for the Union or non-Union schemes in the OSS or for the IOSS can pre-register from 1 April 2021. A new Tax and Duty Manual was recently published, which outlines the requirements for pre-registration for the OSS and IOSS from 1 April 2021.

VAT eCommerce – Registration for the OSS and IOSS from 1 April 2021, Tax and Duty Manual sets out information on the new eCommerce OSS and IOSS. The OSS is an extension of the current Mini One Stop Shop (MOSS) scheme. It simplifies the VAT obligations for businesses selling goods and services to final consumers in the EU. IOSS is a new special scheme for reporting distance sales of goods imported from outside the EU. From 1 July 2021, the current low value consignment VAT relief threshold of €22 will be abolished. This means that VAT will be due on all goods imported into the EU regardless of their value. The purpose of the IOSS is to facilitate the declaration and payment of import VAT on low value goods.

Revenue eBrief No.070/21 indicates that more detailed guidance will be provided in due course.