The current Mini One Stop Shop (MOSS) will be extended to the One Stop Shop (OSS). Under the MOSS scheme, businesses can declare the VAT owed for cross-border digital services to consumers.
The (new) OSS can be used for:
Via the OSS, businesses that owe VAT in multiple EU Member States can declare and pay VAT by means of a single OSS return in the country of residence.
The country of residence/registration of the business then remits the VAT owed by the business to the other EU Member States.
The OSS return must be submitted each quarter and is separate from the regular turnover tax return. Input VAT cannot be reclaimed via the OSS.
If the OSS is used, the obligation to provide the consumer with an invoice no longer applies. However, businesses are under no obligation to use the OSS. If the OSS is not used, the business must register for and remit VAT in all EU Member States in which it provides products or digital services. In that event, the business is also obliged to issue an invoice to the consumer and to comply with the invoicing requirements applicable in that country.