EU VAT E-commerce Package: Do you sell online and to the EU?
New rules implemented by the EU starting on 1 July will see a change to the way VAT is reported and paid, impacting online sellers in the UK, selling both products and services.
What will change?
The changes to EU VAT reporting are designed to simplify VAT reporting, promote ecommerce and increase online cross-border transactions. It’s aim is to specifically to help small business and remove barriers in a post-Brexit environment.
Alongside the reporting changes, the EU is expanding their one stop shop (OSS) simplifications which optionally allow businesses outside of the EU to report all service sales in a single VAT return.
The OSS systems is optional, but the alternative means a lot more paperwork, so it’s a good idea to understand the new system and take advantage of what’s on offer.
If you sign up for the OSS, then you will use the same system regardless of where your customerrs are based, be they in Germany, France, or Spain, for example.
How does OSS impact my EU customers?
The IOSS makes life simpler for your EU customers. Instead of seeing zero-rated VAT products, customers will see the full price of a product, including the ax. There will be a speeding up of customs requirements which means your products could arrive faster.
Sign up to OSS
Online sellers can easily switch over to the OSS system if they are using cloud accounting software, such as QuickBooks, Sage or Xero.
Accounting packages are HMRC compliant and automatically update with new regulations, making it easier for you to comply with tax changes.
f you create an invoice for one of the 27 EU countries, the software will automatically display the correct VAT rate.
Remember VAT rates change depending on how your business scales so it’s important to find a solution that grows with you.
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