One question that concerns almost every stakeholder in online retail - merchants, tax advisors, ERP and shop system providers, and marketplaces - is.
Is the one-stop shop coming 7/1/2021?
A letter from the Dutch tax authorities to the Parliament in The Hague dated 19/01/2021 reveals the following.
The one-stop shop will probably be up and running by 7/1/2021 - but it will be bumpy and manual.
What are the backgrounds?
As we continually report, a major regulatory hurdle in cross-border online trading is set to be removed on 1/7/2021.
The Value Added Tax for deliveries to end consumers in other EU states must then no longer be reported directly via local registrations in other EU countries. Online traders who still do this themselves must regularly seek a tax advisor in the individual EU states for this purpose.
From 1.7.2021, there shall instead be an option to clear these transactions centrally in the state of residence - through central filing of VAT return & central settlement of VAT liability.
Important: For the majority of traders, however, this does not mean that they can do without local registrations in other EU countries.
This platform is the so-called One-Stop-Shop (OSS).
So far, the Netherlands and Germany have publicly communicated that they consider a postponement to 1.1.2022 desirable due to difficulties in implementing the OSS.
In the end, however, all Member States agreed that further postponement would do considerable damage to the digital economy.
The Netherlands therefore officially confirmed on 19.1.2021 that, although it continues to face enormous difficulties in implementation, it will nevertheless stick to 1.7.2021.
Emergency plan of the Netherlands - presumably also in other EU states
In this letter from the Dutch tax authorities dated 19.1.2021, which is only available in the national language, it is reported that a provision of the OSS as of 1.7.2021 will be possible via a so-called contingency plan.
The letter states at the outset that this approach will entail (default) risks for the Dutch tax authorities.
Many processes will continue to be manual after 7/1/2021, so there will be delays in processing time.
Nor can it be guaranteed that the exchange of information - and probably also the clearing between EU states - will run smoothly.
What does this mean for retailers, tax consultants, ERP and shop providers?
The biggest - known - problem child so far in the implementation of the OSS publicly announces that they will stick to the deadline of 1.7.2021.
In the case of the second problem child, Germany, there are also increasing signs that the OSS will be implemented on time.
Thus, the implementation of by far the largest sales tax reform for the digital economy is now very likely to occur in the middle of the year.
How does Taxdoo help you?
For some time now, we have been providing comprehensive clarification on what the OSS and the associated sales tax reform will mean for the processes of all stakeholders.
We will intensify this in the coming weeks and months. We will soon publish a comprehensive whitepaper and start a regular webinar series.
If you want to get a compact overview via podcast, this recording is recommended.
If you are a provider of an ERP or shop system and would like to make an OSS interface available to your customers from 1.7.2021, please register via
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