The days are getting shorter and the holidays are drawing closer. As the year comes to an end, families and friends look forward to spending time together. Gifts and surprises are a traditional part of these festivities. At the end of every year, e-commerce sees a boost in sales as a result of the holiday season. Between Black Friday and Christmas, online shopping skyrockets every year. In light of measures to combat COVID, web store sales may well set new records this year.
The new e-commerce rules that entered into force as of 1 July 2021 offer opportunities for expanding and optimising your online sales. In this article we will take another look at the new rules and provide a number of pointers for optimising your end-of-year sales.
E-commerce: the current state of play
When the new VAT rules for online sales to consumers were rolled out, so too was the One Stop Shop (OSS). The OSS allows reporting of all EU distance sales in a special VAT return. As a result, online stores and other parties who provide sales to consumers within the EU, can benefit from a significantly lower administrative burden, as they are no longer required to register for VAT in each EU country of arrival of the goods. Of course it is important to implement the new rules correctly.
Now that the third quarter of 2021 has come to a close, the first OSS returns have been filed. This would be a good moment to review the implementation. Filing the OSS return is relatively easy. Businesses fill in the VAT amount and tax rate for each individual EU country. The total turnover and VAT due is then calculated automatically. Right before the return is filed, an overview is generated, which can be compared to your own administration before final approval.
Currently, OSS returns need to be filed separately, through the website of the Dutch Tax Authorities. Software suppliers did not receive the required information on time, which means that software solutions have not yet been connected to the systems of the Dutch Tax Authorities.
Please note that businesses established in The Netherlands require a digital certificate, known as eHerkenning, to log in to the website of the Dutch Tax Authorities, in order to file an OSS return.
Opportunities for optimisation
Selling goods through an online shop offers many opportunities, one of which is that the scope of your activities can quite easily be scaled up to cover all EU countries. The brand and the supply chain have already been established, so generating more revenue is simply a matter of finding (more) customers. The OSS makes it easy to sell goods to consumers throughout the EU, without major additional requirements.
It remains important that the OSS is implemented correctly and on time, and that the correct VAT rate is applied to the sales of goods (as the VAT rates differ within the EU).
Sales to consumers in non-EU countries
If you sell goods to consumers in non-EU countries, you may be faced with local VAT legislation. This may for example be the case if you sell goods to consumers in the United Kingdom; learn more about this in our informational webinar.
If you have any questions, please feel free to contact us.
This content was published more than six months ago. Because legislation and regulation is constantly evolving, we recommend that you contact your Baker Tilly consultant to find out whether this information is still current and has consequences (or offers opportunities) for your situation. Your consultant will be happy to discuss the latest state of affairs with you.
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