On July 1st 2021 the special scheme “Distance selling” covering supply of goods to private individual resident in another EU country was changed. The change is a modernization of the current VAT filing system and it is now possible to file your VAT return covering distance selling from your “home” country. Accordinglythe threshold for local VAT liability was reduced from EUR 35,000-100,000 per country to EUR 10,000 for all countries in total.
This scheme was introduced to avoid distortions of competition due to different VAT rates in various EU countries. In addition, to ease the administrative burden, especially for small and medium companies.
The option to file and pay the VAT charged on distance selling report fromcountry your establishment, is in general, a great relief for most companies as they can avoid having local VAT registrations in the country of recipient. On the other hand almost every cross selling business with B2C customers will be liable to charged and pay local VAT.
The OSS return must be filed on a quarterly basis, accordingly the payments must be made every quarter as well.
There may still be various reasons why your company is obliged to have a local VAT registration, e.g. if you use an online market place as portal for selling of goods to private individuals in other EU countries, if you have consignment goods stored locally or if you for some reason need to have your goods at a warehouse in another European country.