Import One Stop Shop

Overview

On July 1, 2021, one of the biggest e-commerce VAT reforms in the EU will come into effect. You should be well-prepared for this, which is why we strongly recommend you read the following information, and follow the to-dos with great care. 

 

Your to-dos to be prepared for July 1, 2021: 

• Ensure that you possess an “Elster” certificate.
• Register promptly for the One-Stop-Shop. If you have B2C sales from non-EU countries into the EU, register for the Import-One-Stop-Shop at: https://www.elster.de/bportal/start. 
• Notify Taxdoo of your registration for the OSS and IOSS and, if using the IOSS, share your IOSS registration number with Taxdoo.

The key points of the reform are as follows:

• The former distance selling thresholds for individual EU countries for cross-border sales to private customers (€35,000 or €100,000) will no longer apply.
• Instead, a Europe-wide distance selling threshold of €10,000 (net) will apply to all EU countries in total from 01/07/2021.
• This means that the vast majority of online merchants will be liable to pay tax in every EU country to which they send even one parcel.
• Regular VAT reports and payment of VAT required for all EU countries can be filed centrally via the One-Stop Shop (OSS) in the country in which the company is based. In Germany, this is the Federal Central Tax Office (BZSt).
• The use of the One-Stop Shop is voluntary, however it is the only way to avoid local registrations in all EU countries.
• The use of foreign warehouses, local B2C sales and B2B sales cannot be handled via the One-Stop-Shop and will still require local VAT registrations.
• Taxdoo can provide you with all transaction data required for OSS reporting in the necessary format, as well as continue to handle any necessary registrations and the ongoing submission of local VAT returns in other EU countries.
• You can register for the German One-Stop-Shop via the online portal "My BOP" of the Federal Central Tax Office.
• B2C sales with a value ≤ €150 from third countries to the EU can also be reported via the Import One-Stop-Shop. Registrations for the IOSS are also made via the "My BOP" portal.

 

You MUST register for the One-Stop-Shop before July 1, 2021 in order to use it starting from July, 1, 2021. The registration for the Import-One-Stop-Shop should be done beforehand, as you need a registration number to use the IOSS. It usually takes from 2 to 14 working days until the registration number is issued. 

 

You can find detailed instructions on how to register for the respective procedure below.

 

The Import One Stop Shop (IOSS) is relevant for distance sales valued at ≤ EUR 150, which are imported into the EU from a third country. These distance sales are also liable to tax in the country of destination, so that without the Import One-Stop-Shop there would be a registration obligation in the individual destination EU states. 

 

Who can declare their distance sales via the IOSS?

 

Third country AND EU merchants and companies can report their distance sales via the IOSS (Import-One-Stop-Shop)

 

Requirements: 

• Registration for the Import-One-Stop-Shop at the Federal Central Tax Office (BZSt)
• Valid identification number before import
• Shopping cart value of up to €150 
• Direct sale from a third country to a private consumer located in an EU country

Provided that these requirements are met, the Import-One-Stop-Shop can be used to fulfil VAT reporting obligations. This means that the import of the goods is exempt from import VAT and no import VAT has to be paid during customs clearance.

The VAT filings are to be submitted monthly to the Federal Central Tax Office and the deadline for payment is one month after the end of the taxation period. There is now only one clearing office, i.e., no more direct transfers to numerous EU countries. 

 

The amount of VAT declared via the Import-One-Stop-Shop procedure must be transferred to the following account. Direct debit is not possible.

Recipient: Bundeskasse Trier Special account EU/UST

Bank: Deutsche Bundesbank Saarbrücken branch

BIC Code: MARKDEF1590

IBAN: DE8159000059001020

Any costs incurred from payment transactions are to be paid by the client (fee regulation 'our').

 

The reference number must be specified as the purpose of transferral when making the first payment. This has the following format: DE/IM-IdNr./taxation period in the form of MM.YYY.

Example reference number: DE/IM999999/07.2021

After the first payment, each seller is provided with a cash reference number, which must be indicated as the purpose for transferral for all further payments to the Import One-Stop-Shop.

 

Any adjustments to VAT declarations submitted via the IOSS can be submitted with a subsequent VAT return, indicating the taxable period to be adjusted. 

Registration for the IOSS is made via My BOP. Generally, registration is activated the day on which the merchant, or a qualified representative on their behalf, receives their individual IOSS registration number. Notification that the registration has been processed is sent from the Federal Central Tax Office (BZSt) to the mailbox in the My BOP portal two to fourteen business days after its receipt. It also contains the assigned registration number for merchants who have been registered for the procedure.

 

Note: If you want to use the IOSS from 01/07/21, you must register on time, as you can only use the IOSS after the registration number has been issued. 

 

Registration for the Import One-Stop-Shop

You register for the German Import One-Stop-Shop via the online portal "My BOP" belonging to the Federal Central Tax Office (https://www.elster.de/bportal/start). This is completed as follows:

This registration process is relevant for Taxdoo customers, as it is required if Taxdoo supports you in fulfilling your Europe-wide compliance obligations.

Registration is not done directly on the BZSt website, but on 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, for example, to fill out and submit (value added) tax returns for your company. The file has the extension .pfx, so that you can easily search for it on your computer or in the cloud if you have misplaced it. 

 

If you do not have the Elster certificate file yet, you need to follow the instructions set out in the following link: https://www.elster.de/eportal/registrierung-auswahl/hinweis2

 

The next step is to look for the  “Registration notice for participation in the IOSS import scheme”.

 

Questions when registering for the Import One-Stop-Shop: Applicant information.

 

When registering, information about the applicant must first be provided. Here, a distinction must be made between the following two scenarios: 

• Taxpayers based in the EU who wish to participate in the Import One-Stop-Shop: These are defined as taxpayers who are represented in accordance with § 18k UStG during the registration process.
• Tax representatives representing merchants based in a third country during the Import-One-Stop-Shop procedure: These are defined as representatives according to § 18k UStG during the registration process. 

 

If you register for the IOSS as a merchant located in Germany, the first selectable option is relevant.

 

 

Information on fixed establishments.

 

Fixed establishments of a company located in other EU member states

The question of fixed establishments and other entities in EU countries abroad is somewhat difficult.

Fixed establishment: The concept of a fixed establishment is defined consistently throughout the EU. According to Art. 11 (2) in the EU VAT Council Implementing regulations a fixed establishment is any establishment, other than the place of business, that has a sufficient degree of permanence and structure that allows it to provide services in terms of personnel and technical equipment.

Amazon fulfilment centres in other EU countries are not permanent establishments. Looking at the definition, it should be clear that you can not provide services from an Amazon warehouse. 

For further clarification, click on the question mark at the end of the sentence. 

 

 

Previous and current registrations of companies and taxpayers.

 

If you only registered recently for the Import-One-Stop-Shop in Germany and, if applicable, you were already registered for the IOSS in another member state in the past, you must provide all relevant information regarding your previous registration here.

 

 

Details regarding participation in the One-Stop-Shop system

 

If you have also registered for the One-Stop-Shop, you must provide the relevant and corresponding information here. Subsequent identification is performed with your VAT ID number.

 

 

Information regarding the start of registration

You must also provide information as to the start of your registration. Generally, the rule is to assume that each case will be standard practice. At this point it should be clarified, once again, that the IOSS can be used as soon as the identification number has been issued. 

 

At this point in the registration process, the tax authorities can determine and provide you with the possible start of registration.

 

 

Note: You are always responsible for meeting the deadlines. You can see an overview of the terms in the appendix.