The new One Stop Shop VAT rules regarding web sales to EU consumers are valid from today, 1 July 2021. If you sell to consumers in the EU, the local VAT in the recipient country must be charged from today.
The new rules should make it easier for webshops in the EU to sell with the local VAT, as it no longer requires a local VAT registration. However, this may mean changes in the administration of foreign VAT as well as adjustments in both webshop and ERP systems to be able to handle VAT correctly.
Webshops must sign up for the US EU scheme with their local tax authority.
For webshops with stock in other EU countries other than their resident country will still be required to have a local VAT registration in the country there the stock is placed. This will have an impact on the webshops selling through digital marketplaces.
Sales via Amazon fulfillment (FBA)
Webshops with stock in another EU country must always have a VAT number in the country where there is stock. The item is sold and delivered from a local warehouse and invoiced automatically via Amazon. Here it is important to be able to process data in such a way that VAT is reported correctly partly to the local authority and partly to your local Tax authorities as OSS EU VAT.
At the same time, it is worth noting that from 1 July, Amazon will no longer automatically issue invoices to consumers regarding distance selling. To maintain the automatic invoicing, you must enter your Union OSS country in your seller account with Amazon. If the webshop fails to state its OSS Union country in the seller’s account, Amazon does not automatically issue invoices regarding distance selling in the EU. Consequences of this are that the webshop itself must create invoices for the individual orders related to distance selling.
