Extension of the "Mini-One-Stop-Shop" to the "One-Stop-Shop”

The "Mini-One-Stop-Shop", which has been applicable since 1st January 2015 only to the supply of telecommunications, radio and television services and to the supply of services provided by electronic means, will be extended from 1 July 2021 to all supplies of services, the place of which is deemed to be within the territory of a Member State in which the supplier is not established, to intra-Community distance selling of goods and to distance selling of low-value goods imported from third countries or third territories which are supplied to non-taxable persons ("consumers") who have their place of residence within the European Union ("EU"). As a result of this extension, the VATMOSS application will become from 1 July 2021 the single application integrating both the “Mini-One-Stop” and “One-Stop-Shop”' functionalities.

In order to avoid that taxable persons carrying out activities covered by the special schemes of the "One-Stop-Shop" in several Member States have to go through administrative formalities in each of the Member States of residence of their customer, they can opt for the "One-Stop-Shop". Registration with the "One-Stop-Shop", for one scheme or for several schemes, if the qualification criteria allow it, allows taxable persons to designate a Member State of identification as the single electronic contact point for VAT identification, declaration and payment.

Following the extension of the "Mini-One-Stop-Shop" to the "One-Stop-Shop", all taxable persons in the "Mini-One-Stop-Shop" (non-EU and EU schemes) are migrated by the administration to the respective "One-Stop-Shop" schemes by 1 July 2021. The migration is automatic but requires taxable persons to update their identification data in order to comply with the "One-Stop-Shop" rules. Taxable persons in the “Mini-One-Stop-Shop” are informed of this migration by electronic notification.

The VATMOSS application will become the single application from 1 July 2021, integrating both the "Mini-One-Stop-Shop" and "One-Stop-Shop" functionalities. It should be noted that as regards the “Mini-One-Stop-Shop” functionalities, the only ones that continue to apply beyond 30 June 2021 are those concerning the submission of VAT returns, corrections to VAT returns and payments relating to supplies of services under the non-EU or EU regime that were made before 1 July 2021. This implies that for reporting periods prior to 1 July 2021, returns and corrections to returns must be submitted in the "Mini-One-Stop-Shop" (MOSS) format. For reporting periods from 1 July 2021 onwards, the reporting format to be used is the "One-Stop-Shop" (OSS) format.

From 1 April 2021, taxable persons will be able to subscribe to the three schemes and start reporting their activities covered by these schemes from 1 July 2021.

EU VAT legislation will no longer apply in the United Kingdom from 1 January 2021, except in respect of goods to and from Northern Ireland, in accordance with the Protocol on Ireland/Northern Ireland, which forms an integral part of the withdrawal agreement. Therefore, in the context of the "One-Stop-Shop", Northern Ireland can act as a Member State (of identification and consumption) but only in respect of goods.

The purpose of this new provision is to introduce the fiction of the "deemed supplier" whereby a taxable person who facilitates a supply of goods through the use of an electronic interface (marketplace, platform, portal or similar device), is deemed to have received the goods from the underlying supplier and then supplied them to the consumer. The electronic interface as deemed supplier is made liable for the VAT attributable to the supply to the consumer. The supplies of goods covered by this fiction are

• distance selling of goods imported from third territories or third countries contained in consignments of an intrinsic value not exceeding EUR 150, irrespective of the place of establishment of the underlying supplier;
• the supply of goods which at the time of sale are within the territory of the Community, provided that the underlying supplier is not established in the Community.

The taxable person making distance sales of low value imported goods may/should appoint a person established within the Community (intermediary) as the person liable for payment of VAT and fulfilling the obligations under the import scheme in the name and on behalf of the taxable person.