Published on: 01 July 2021
British Marine would like to make members aware that as of 1 July, new value-added tax (VAT) rules will come into effect for distance sales of goods (business to consumer – B2C) and cross-border supplies of services (B2C), replacing the existing cross-border B2C rules.
The Mini One Stop Shop (MOSS), which was put in place on 1 January 2015, has been extended to become a One Stop Shop (OSS) as from 1 July 2021 covering a wider range of supplies and has introduced further simplifications. This enlarged One Stop Shop covers three special schemes:
- Import Scheme
- Union Scheme
- Non-Union Scheme
British Marine’s VAT specialists, PKF Francis-Clark (chartered accountants and business advisers) have produced a suite of useful guidance documents to help with the transition.
- Factsheet: EU E-Commerce Changes – Overview
- Import ‘One Stop Shop’ Scheme (IOSS)
- Union ‘One Stop Shop’ Scheme
- Non-Union ‘One Stop Shop’ Scheme
British Marine members seeking further information and support can contact PKF Francis-Clark for FREE as part of their membership.
The above guidance documents are general and cover all sectors, but matters that will be specific to the marine sector will be B2C supplies of:
Charter activity – the Place of Supply (PoS) is where the charter commences within the EU; ordinarily this could require multiple VAT registrations in all the relevant countries, but there would now be eligibility to use a One Stop Shop and a single registration.
Work on boats – PoS is wherever the work is carried out; as above, OSS eligibility will be possible.
Brokerage – PoS is wherever the underlying supply takes place, therefore where the boat is sold (and will remain) within the EU. As above for eligibility.
The new rules will also affect supplies of goods to non-business customers who receive them within the EU (previously covered by Distance Selling rules), which will now be covered by the new rules.