The new threshold for distance selling of B2C goods between EU member states and Northern Ireland is a single pan-European threshold of €10,000 (£8,818).
A business opting to register for One-Stop Shop (OSS) will no longer be required to VAT register in each of the EU member states of their customers, provided that it is VAT registered in the single EU member state and that the EU country they ship to is not their home country or a domestic supply in a country where they have a physical location or hold stock. For these noted countries, merchants should instead continue filing a local return.
Below this €10,000 threshold, the supplies of services and distance sales of goods within the EU may remain subject to VAT in the Member State where the business is established.
From 1 July 2021, the One-Stop Shop (OSS) will be extended to all business-to-consumer (B2C) services taking place in EU Member States where the supplier is not established.
II. Import from non-EU countries
For consignments of (non-excise) goods with intrinsic value of €150 euros or below imported from non-EU countries into the EU and Northern Ireland, businesses will only be required to charge VAT at the time of the sale and should use the newly introduced Import OSS (IOSS) to file a single monthly VAT return. Non-EU merchants opting to use IOSS may need to appoint a VAT intermediary.
III. The Non-Union OSS
The non-Union OSS will be available for supplies of B2C services taking place in the EU made by non-EU suppliers.
Non-EU sellers can use the OSS to register as a “non-Union” taxpayer with the tax authority of the EU Member States of their choice, except where they already have fixed establishments in the EU.
Businesses cannot claim an input VAT deduction on the OSS VAT return and any occasional input VAT should be claimed via an EU online refund system.