As of 1.7.2021, new VAT rules enter into force, for cross-border retailers (Business to Consumers) and the importation of goods by e-commerce, in accordance with the amendments to the VAT Directive (2006/112 / EC).

The new rules:

• Simplify VAT obligations for cross-border e-commerce businesses,

• Enhance the competitiveness of EU businesses, and

• Lead to a deepening of the single European market.

In order to implement the new rules and facilitate the business community and the e-commerce transactions, the Independent Authority for Public Revenue (IAPR) developed the One Stop Shop digital application.

More specifically:

A. One Stop Shop (OSS)

1. The new OSS digital application

OSS allows businesses to register electronically for VAT purposes in one specific EU Member State and thus avoid VAT registration in multiple Member States, for:

• All services to EU consumers,

• Distance sales of goods to EU buyers, and

• Domestic sales of some goods.

2. New pan-European threshold for distance sales

It is a new threshold of EUR 10.000, applicable for distance sales in the entire EU, below which:

• Telecommunication services, radio and television services and electronically supplied services (TBE) and

• Distance sales within the EU,

will, as a general rule, be taxed at the supplier's established EU Member State and not at the consumer's place of residence.

3. Online Electronic Platforms

Special arrangements apply for businesses that operate online electronic platforms, so that they can be treated as “deemed suppliers” of goods and become liable for VAT obligations.

OSS applications can register service providers / suppliers of goods and electronic platforms, established inside and outside the EU.

B. One Stop Shop for Imports (IOSS)

1. The new IOSS digital application

IOSS allows VAT payments of imported products by e-commerce, only for shipments valued up to EUR 150 and products not subject to excise-duty (tobacco, alcohol and energy products).

2. The new import VAT regime

Starting 1.7.2021, VAT will be applied to all imported goods, regardless of their value and according to the respective national rates applicable for VAT.

3. Benefits for suppliers, electronic platforms and buyers / importers

The application allows suppliers and electronic platforms that sell imported goods to end-consumers in the EU, to collect, declare and pay VAT to the Import One Stop Shop (IOSS), instead of the VAT-payment taking place by the buyer (importer) at the time of importation of the goods in the EU (as in force until 30.6.2021, for goods of more than 22 EUR of worth.

The application also makes the procedure easier for the buyer (importer), who is charged with VAT at the time of the online purchase, without the need for him to pay VAT at the time of importation.

Registration is possible for vendors and online platforms both EU and non-EU based. For the latter, the designation of an EU established intermediary is necessary, for the fulfilment of the VAT duties.