Revenue published a number of new Tax and Duty Manuals outlining the new VAT e-Commerce rules that took effect on 1 July 2021.

Union Scheme – One Stop Shop (OSS)

The Union scheme builds on the legislative framework established by the Mini One-Stop Shop (MOSS). The MOSS became the OSS. From 1 July 2021, the EU VAT due on the following supplies can be declared in the Union scheme:

• cross-border supplies of telecommunications, broadcast and electronically supplied (TBE) services to non-taxable persons within the EU (as was previously the case);
• all other cross-border supplies of services to non-taxable persons within the EU;
• intra-Community distance sales of goods; and
• certain domestic supplies of goods (in specific circumstances).

The use of the Union scheme is not obligatory. However, if a taxable person is registered for the Union scheme, this scheme must be used to account for the VAT due on all supplies of goods and services within the scope of the scheme.

Taxable persons registered for the Union scheme under MOSS for supplies of TBE services should have been migrated to the new OSS and VAT due on such supplies can continue to be declared through the expanded OSS. Taxable persons registered for the Union scheme under MOSS must use the expanded Union scheme to declare and pay VAT on other supplies within the scope of the expanded OSS.

Non-Union Scheme – One Stop Shop (OSS)

The extended non-Union scheme builds on the legislative framework established by the MOSS. From 1 July 2021, taxable persons who are not established in the EU can register and pay for VAT in one Member State in respect of all B2C supplies of services to non-taxable persons in the EU.

This represents an extension of the scope of the non-Union scheme, from TBE services alone to all services supplied to non-taxable persons. The use of the non-Union scheme to declare and pay EU VAT due on services supplied to final consumers across the EU is optional.

Import One Stop Shop (IOSS)

From 1 July 2021 a supplier selling goods from a third country or third territory to customers in the EU can register for the IOSS. The IOSS can only be used where the goods, excluding goods subject to excise duty, are dispatched by or on behalf of the supplier from outside of the EU at the time they are supplied and the intrinsic value of the consignment does not exceed €150.

Since 1 July, the exemption from VAT on the importation of low value goods (with a value of less than €22) into the EU no longer applies, and VAT is chargeable on all imports. The exemption from customs duty for imports of goods with an intrinsic value of less than €150 remains in place. As a result, VAT will be due on the import of all goods, while customs duties will be charged only on goods with an intrinsic value of more than €150, except in the case of goods subject to excise duty.

The IOSS allows for the declaration and payment of EU VAT due on import through a monthly IOSS return instead of the payment of the VAT to Customs at the time of importation of the goods. The use of the IOSS is not mandatory and if a supplier chooses not to use the IOSS the arrangements in relation to VAT on import in place prior to 1 July 2021 will continue to apply. All goods will have to be declared to Customs and the relevant VAT paid before the goods are released into free circulation in the EU.

The IOSS may be used by taxable persons established both inside and outside of the EU.

Deemed Supplier

From 1 July 2021, a taxable person operating an electronic interface is deemed to be the supplier of goods in specific circumstances. As such, the electronic interface will assume the VAT obligations of a conventional supplier when making certain sales of goods to customers. These obligations include the collection and remittance of VAT on sales to Revenue. The deeming provision apply where certain conditions are fulfilled.

It is not an optional provision.

An electronic interface is a broad concept which could include a website, portal, gateway, platform, marketplace, application programme interface (API) or similar.

Special Arrangements

This manual deals with the special arrangements for the declaration and payment of import VAT where neither the IOSS nor the standard VAT mechanism on importation are being used. The simplification is designed in particular for postal operators, express carriers or other customs agents declaring low value goods for importation.

Where the arrangements are used, the standard rate of VAT will apply to all goods imported under the arrangements.

The use of these arrangements is not mandatory and any trader who wishes to avail of them must submit a formal application to Customs and await formal authorisation from them.

See Revenue eBrief No. 126/21 for further details.