VAT Expert Group – 11 February 2019 VAT e-commerce package 2 Commission Implementing Regulation replacing Regulation 815/2012 IT development – overview VAT Expert Group – 11 February 2019

Commission Implementing Regulation replacing Regulation (EU) 815/2012

1) Identification details OSS registration information (Annex I) Aligning registration information of the Union and non-Union scheme to the extended scope of the OSS Lay down the detailed registration information in the Import OSS (for the taxable person and the intermediary) Define the format of the Import OSS Id No. and of the identification number of the intermediary Creation of an Import OSS VAT id No. database (Art. 3) Contains only IOSS VAT id. Nos → Extract of identification details of a taxable person using the IOSS Allowing automatic exchange of Import OSS VAT identification Nos. between the MSID and the other MS In a manner that ensures at all times a correct up-to-date view of all national registry data provided by all MS ≠ VIES VAT identification No. database

2) VAT return content Distinction in VAT return between: goods and services Distinction between supplies at standard and reduced rates Supplies from the MSID and from other MS Union scheme – supplies of goods facilitated by electronic interfaces: 'local' / 'domestic' supplies can be declared as well Insertion of a new part in the VAT return for corrections to previous VAT returns until 3 years back (indication of the period concerned Compensation between VAT on new supplies and negative corrections, per MSCON (up to the amount of VAT on new supplies) – if negative corrections exceed VAT on new supplies → refund by MSCON The current MOSS system must still be used for VAT returns and corrections to VAT returns relating to pre-2021 tax periods

3) Planning 18/1/2019 – presentation of the draft Regulation to MS in the SCAC Committee Written comments by MS End April 2019 – presentation of an updated version to SCAC Q2 2019 – Vote in SCAC Q3 2019 – Commission adoption 1/1/2021 – Entry into application

IT development – overview (6 business cases)

The Business cases (1) 1. Extension of the EU and non-EU schemes To cover all services and intra-EU distance sales of goods 2. Development of IOSS To cover distance sales of imported goods The Functional and Technical specifications covering these 2 business cases are being reviewed by MS 3. Make IOSS VAT Id. Nos. accessible to Customs authorities The MS of importation shall be able to identify imports of goods for which the IOSS is used and to carry out an electronic verification of the validity of the IOSS VAT Id. Nos. Need to create a database including all valid IOSS VAT Id. Nos. to be made accessible online to Customs authorities by Tax authorities 4. Make the global amount of sales using IOSS available to Tax Administrations on a monthly basis Use of an existing system (SURV-RECAPP)

The Business cases (2) 5. VAT rate information – use of the TEDB (Taxes in Europe Database) instead of update of TIC (Taxation Information and Communication database) A small feasibility study has been launched Avoid duplication of work For goods: link to HS code For services: what code to be used: CPA (Statistical classification of products by activity)? 6. Extension of the e-forms To supports the exchange of information between MS for requests for records and audits of taxable persons

DG TAXUD – Unit C1 E-mail: TAXUD-C1-SECTOR-A@ec.europa.eu