From 1 July 2021, both the new OSS and IOSS VAT regimes have been fully implemented. Therefore, businesses operating in Italy with B2C channels will be able to send required accounting and reporting details to the Italian Tax Agency through these two new online channels.
OSS and IOSS, in details – Indeed, following the Decision of the Director of the Tax Agency dated 25 June both guidance relating the new regimes have been clarified. Particularly, the OSS applies to:
cross-border supplies of telecommunications, broadcast and electronically supplied (TBE) services B2C within the EU, previously covered by MOSS;
all other cross-border supplies of services B2C within the EU;
all intra-EU B2C distance sales of goods.
Under the OSS, a subsequent supply of goods or services by the supplier is subject to VAT at the appropriate rate applicable in the Member State where the consumer is located. The VAT payable in each Member State should be remitted through calendar quarterly OSS VAT returns which are required to be filed in the Member State of Identification.
As a result of the OSS, VAT registrations and associated periodic VAT obligations due to breaching distance-selling goods thresholds across the EU should no longer be required.
Furthermore, where goods are imported from a non-EU jurisdiction, suppliers are entitled to use the new Import One Stop Shop (IOSS) scheme. The IOSS only applies to consignments of goods with an intrinsic value not exceeding €150 and the current low value consignment VAT relief of €22, which permitted the VAT free import of goods below this value, has been abolished. Under the IOSS scheme goods can now be imported exempt from VAT and the subsequent supply of goods by the suppliers is subject to VAT at the appropriate rate applicable in the Member State where the consumer is located. The VAT should be remitted through monthly IOSS VAT returns which are required to be filed in the Member State of Identification. It’s important to highlight that either the OSS or the IOSS are not mandatory. However, if suppliers do not avail of this scheme it could mean that they would be required to register in a multiple of EU jurisdictions.
Advantages for interested parties – Companies that sell goods and provide services to final consumers throughout the EU, via electronic interfaces, will be able to benefit from the following advantages:
to have only the Italian VAT number for all sales of goods and services of services eligible for purchasers located in all other 26 Member States;
declare VAT in Italy, through a single electronic declaration and make a single payment of the VAT due on all sales of goods and services;
interface with the Italian Tax Agency alone, even if sales take place throughout the EU.
Info-point on the Revenue website – The telematics functions that allow taxable, resident and non-resident subjects who intend to join the special OSS and IOSS regimes, to register, as well as further information on the individual regimes, are already available from 1 April 2021 on the website www.agenziaentrate.gov.it; within the sections: optional OSS and IOSS regimes.
Source: Agenzia delle Entrate