1. Q Are the three special Single Address Box schemes (EU OSS, non EU OSS and IOSS), effective from 01.07.2021, mandatory or optional?
A It is optional.
2. Q Who can use the special schemes?
A These special schemes concern B2C (Business to Consumer) transactions where B is subject, inside or outside the European Union (depending on the status), while C is only a Community non-taxable person (individual – final consumer). For reasons of simplification where “individual” is mentioned, it has the above meaning, ie not subject to tax – final consumer.
3. Q Which companies can join the non-EU scheme?
A Businesses not established in the EU (European Union) and providing services to end consumers in the EU.
4. Q What services or deliveries of goods are covered by the non-Union scheme?
A The non-EU scheme concerns all B2C services to individuals, but not the delivery of goods to individuals.
5. Q In which Member State will taxpayers who are not established in the EU be able to register under the non-EU scheme?
A They can register in any Member State of their choice.
6. Which services or supplies of goods are covered by the Union regime?
A The Union regime concerns:
I. Intra-Community B2C services within the EU by a subject established in the EU outside the MS established by the subject.
II. Intra-Community distance selling of goods to Community individuals by an entity established in the EU or by a non-EU entity or by an electronic interface (platform) when it is considered a supplier, ie when the original seller is not established in the Union.
III. Domestic B2C deliveries of goods made via an electronic interface (platform) when it is considered a supplier, ie when the original seller
is not established in the EU.
Sales of goods are not included in the Union scheme:
– for which long-distance sales bans apply (Industrialized tobacco, Electrically heated tobacco product containing tobacco mixture, Electronic cigarettes and refill containers containing refill liquids)
– which are subject to Excise or Consumption Tax, only if the arrival of the consignment or transfer to
acquiring client is the interior of the country.
7. Q In which Member State will the taxable person established in the EU be registered with regard to the Union scheme?
A It will be registered in the Member State of establishment. If the company is established outside the EU then it will be registered in the Member State where it has a permanent establishment.
8. Q Does the distance sales threshold (€ 35,000 / € 100,000) still apply?
A No, it has been replaced by the new single pan-European limit of € 10,000, below which B2C ICT services and intra-Community distance selling of goods may be subject to VAT in the Member State of origin. After 10,000, VAT is mandatory on the consumption MS and is paid either through the registration in the OSS or through the registration in each consumption MS with the respective national procedures (where the company is required to request VAT / VAT in each consumption MS).
9. Q From what date is the new EU limit of EUR 10,000 calculated for the first application?
A For intra-Community distance sales of goods the limit starts to be calculated from 1.7.2021. For the provision of ICT (Telecommunication, Broadcasting and Electronic – ICT) services the limit has started to be calculated from 1.1.2021 while it is also checked whether in 2020 the limit was exceeded. If a company has an activity that includes both distance sales of goods and ICT services, the amounts for both distance sales of goods and ICT services are calculated at the limit of 10,000 euros.
E.g. if a company has TBE services in France and Italy amounting to 6,000 euros from 1/1/21, 9,000 TBE within 2020 and from 1.7.21 to 1.9.21 to complete an amount of 4,100 for distance sales of goods in Italy and Germany, then 1 / 9/21 exceeded the limit (6,000 + 4100 = 10,100).
10. Q Is the limit of 10,000 Euros calculated per Member State or in total?
A No, the threshold is not calculated per Member State, but in the EU as a whole. if I have
5,000 Euros distance sales of goods in France and 5,100 Euros provision of TBE services in Austria, I have exceeded the limit of 10,000 Euros.
11. Q What is the duration of the tax period for non-EU and EU status? When is the relevant statement submitted?
A The duration of the tax period is three months. The return is submitted by the end of the following month after the end of the relevant tax period. E.g. the EU OSS or non EU OSS VAT return for the first quarter of 2022 can be submitted until 30-4-22.
12. Q What is the length of the IOSS tax period?
A The duration of the tax period is monthly. The return is submitted by the end of the following month after the end of the relevant tax period. E.g. the IOSS VAT return for January 2022 can be submitted until 28-2-22.
13. Q How are the corrections of the previous tax periods reflected in the declarations of the relevant special schemes?
A Unlike MOSS, where the corrections were reflected in the relevant tax period, in OSS / IOSS any corrections that occur are recorded in a subsequent statement in a separate field.
14. Q Does the exemption apply to imports of goods worth up to 22 euros?
A No, the exemption is abolished. All imports of goods are subject to VAT.
15. Q What applies to the import of parcels up to 150 euros?
A For the import of parcels up to 150 euros (two new VAT refund schemes are introduced:
1. Special import regime (IOSS), where the seller of the goods or the electronic platform or the intermediary acting on behalf of the seller is liable to the tax and the tax is paid to the one-stop shop.
2. Special arrangements exist for the declaration and payment of VAT (special arrangements), where the taxpayer is the recipient of the parcel and the tax is paid on behalf of the recipients to the customs authorities by the person who presents the goods to customs (usually companies international courier and the postal service provider – ELTA).
Regardless of which VAT refund method is chosen (IOSS or special arrangements), customs import formalities must be observed.
In the case of goods subject to excise duty and excise duty, as well as tobacco products, heated tobacco products, e-cigarettes and refill containers subject to the prohibition of cross-border distance selling to individuals, the procedures laid down for enforcement and
collection of VAT and VAT and VAT is reimbursed to the competent customs authorities together with these taxes and the above two special schemes do not apply.
16. Q What applies to the import of parcels over 150 euros?
A The applicable customs import procedures. Above this limit is due for imported goods in addition to VAT and the occasional customs duty.
17. Q When is VAT not required from the consignee upon importation at customs?
A VAT must have been paid, as part of the purchase price, to the supplier / on the electronic interface, and upon importation, a declaration of a specific type (H7) must be submitted to the competent customs office, stating the IOSS VAT number of the supplier. Once the validity and validity of this number is confirmed, the customs authorities do not require payment of VAT at customs and the tax is paid to the IOSS box.
18. Q 18. Which companies are registered in the special IOSS import regime?
Α Any taxable company that carries out distance sales (B2C or B2B without the right of deduction) of goods imported from third countries in shipments / parcels worth up to € 150. With its registration it acquires a unique VAT number with VAT valid throughout the Union (VAT IOSS identification number).
If the company does not have an establishment in the EU, it is obliged to appoint an intermediary in order to use the scheme. The broker registers with IOSS and obtains a unique ID with the prefix IN. The intermediary then obtains a VAT IOSS identification number with the prefix IM, for each taxable person he represents.
SOURCE: https://www.taxheaven.gr/circulars/37269/syxnes-erwthseis-apanthseis
