For years, we have been reporting on the upcoming major sales tax reform for online retailers: the Value Added Tax e-commerce package (stage two) and the associated One Stop Shop.
As of today, it is finally possible to register for the One Stop Shop. The 1.7.2021 deadline for the system change for cross-border deliveries to end consumers in online trade - so-called distance sales - is thus becoming increasingly likely.
How the registration to the One Stop Shop works, we explain to you in the following.
One Stop Shop: Registration via BZSt or My BOP
Registration for the One Stop Shop is done via the Federal Central Tax Office (BZSt). However, this does not work directly via the BZSt website, but via a portal through which you can exchange data with the BZSt: My BOP.
A certificate file is required to log in. You should already have this if you are already a user of the ELSTER portal, which you can use to fill out and submit (sales) tax returns for your company, for example.
The file has the extension .pfxso that you can easily search for it on your computer or in the cloud if you have misplaced it.
The next step is to look for the so-called registration notice for participation in the OSS EU scheme.
During the registration process, a number of information and master data are requested.
In the following, we will deal with two questions separately, as they cannot be answered unambiguously for everyone in the first step.
Issues with registration to the One Stop Shop: Information about supporting deliveries by providing an electronic interface.
The first cryptic question or information asked when registering for the One Stop Shop is the so-called information about supporting deliveries by providing an electronic interface.
As far as you register as a dealer, you could click here: No, it does not apply.
Providing an electronic interface means marketplaces - i.e. Amazon, eBay, Zalando & Co.
Background: As part of the reform on 1.7.2021, marketplaces will also be able to use the One Stop Shop for certain sales, so that Amazon & Co. can also register for it.
Questions when registering for the One Stop Shop: Permanent establishments of the company and other facilities for the delivery of goods.
The question of permanent establishments and other entities in other EU countries is a bit tricky.
Let's start with permanent establishments.
Fixed establishment: The term "fixed establishment" is defined uniformly throughout the EU - in Article 11 (2) of the VAT Regulation. According to this definition, a fixed establishment is any establishment, other than the seat of the economic activity, which has a sufficient degree of permanence and a structure which, in terms of personnel and technical equipment, allows it to provide services.
Are fulfilment centres of Amazon in other EU countries permanent establishments?
The answer is no!
If you look at the definition, it should be obvious that you can never provide services from a Amazon warehouse.
But what about the other facilities for delivering goods? That sounds more like a fulfillment center for Amazon, Zalando & Co.
You will get a corresponding clarification when you click on the question mark directly behind the sentence.
Other establishments: Other establishments for the supply of goods means establishments in other EU Member States attributable to the enterprise which are not fixed establishments and from which goods are transported or dispatched in the context of intra-Community distance sales, such as warehouses.
Since Amazon warehouses or fulfillment centers of Amazon are not attributable to you, this aspect should also not be relevant.
However, due to the importance of cross-border fulfilment systems by marketplaces, a clarification by the tax authorities would be very helpful at this point.
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... and provides leading online retailers in Europe with numerous other compliance services via a unique platform in addition to handling ongoing EU and UK-wide Value Added Tax compliance , Intrastat and financial accounting.
... By July 1, 2021, there will also be a One Stop Shop interface so you can easily identify and report your remote sales.
If you want to know more about how you Value Added Taxcan efficiently and securely map compliance, financial accounting and much more via a platform, then book your individual and free initial consultation with the compliance experts from Taxdoo!