European Commission proposes 2024 quick fixes to the existing e-commerce VAT regime

28 April 2023

From January 2025, the proposed introduction of VAT in the Digital Age (ViDA) could mean the extension of the One Stop Shop (OSS) e-commerce single EU VAT registration many other supplies. 

However, while we wait for confirmation that this will be introduced, the European Commission is proposing to implement several quick fixes to the existing OSS regime, which will if accepted be introduced from January 2024. These fixes include: 

• Refinements to processes – This aims to simplify the process of amending OSS returns. It will also make updates to the Standard Audit File (SAF) used in the event of an audit.
• Getting VAT rates right – Further guidance will be issued on how to report zero or exempt sales within the OSS return.
• Changes to the legislation - This will help to clarify the definition of:
  - The Non-Union Scheme OSS for non-EU sellers of services – Used by non-EU suppliers to report VAT on services that they provide to consumers in the EU.
  - The €10,000 OSS threshold and how this is applied.
  - The refund procedures for the Union and Import (IOSS) schemes.
  - When to account for transactions in the OSS scheme.
• Fighting fraud – This will provide EU Customs authorities with access to the IOSS registration database and will extend IOSS import information requirements for these types of e-commerce suppliers.