Jargon Buster
Clear up the confusion by clicking on the words below to get easy to understand definitions of the most used terms regarding the 2021 EU VAT changes.
IOSS stands for Import One Stop Shop. This is an optional special scheme for goods being sent from outside the EU, to customers based within the EU with an intrinsic consignment value of less than EUR150.
OSS stands for One Stop Shop. This is an optional special scheme for goods being sent from one EU member state to a private customer in another. This report would cover any cross-border sales of goods and is reported on a quarterly VAT OSS return. Please also see ‘Union OSS’ and ‘Non-Union OSS’
The Union OSS scheme is for any sales of: physical goods of both EU and non-EU based businesses, TBE services from EU based businesses.
The Non-Union OSS scheme is for any sales of Telecommunication, Broadcasting and Electronic Services from non-EU based businesses as well as a range of services such as admission to events.
MOSS is the Mini One Stop Shop that was implemented across the EU in 2015 for Telecommunication, Brodcasting, and Electronic services. The MOSS scheme includes a Union and Non-Union scheme depending on where your business is based. Businesses using MOSS will only need one VATMOSS registration and you charge VAT at the local rate of where your end customer is. All VAT charged and collected will be reported on a Quarterly VATMOSS return filed in one country and paid to the tax authorities to split amongst the other EU countries. MOSS will be merged wtih OSS from the 1st July 2021.
A fiscal representative is jointly and severely liable for VAT owed by a non-EU based company. They are compulsory in some countries and must be used by a non-EU company in order to VAT register and file ongoing compliance.
EORI stands for Economic Operator Registration Identification number. It is used by the EU customs authorities to identify who is the importer or exporter. Only one EORI number is needed for all EU countries
The Importer of Record is the person or business who is responsible to pay the import duties and taxes on goods being imported through Customs
EC Sales Lists document the movement of taxable supply between EU member states. This could be a cross-border B2B transaction or a stock movement between warehouses in different EU countries.
When importing into the EU, there is a requirement to either have an established address in the arrival country or use an indirect representative who is jointly liable for the imported goods.
