New VAT reports from July 1!

From July 1, new VAT reporting rules come into force, now Dutch taxpayers have two new types of VAT reports.

The new rules apply exclusively to B2C with customers from the EU, that is, the sale of goods and services to individuals or entrepreneurs who are not VAT payers to other EU countries.

How to prepare?

You can register in the IOSS and OSS systems using E-recognition or DigID (only for individual entrepreneurs). After registration you will be given your unique number.

Registration in the system is your permanent choice. It will be valid for at least 2 years.

The reporting period for declaration in IOSS is 1 month, and in OSS – a quarter.

Examples of transactions

iOS

1. A company registered in the Netherlands, through its online store, sells tableware worth 80 euros from China to a buyer in Spain. Goods from China go directly to the buyer in Spain. The product must be sold with VAT at the Spanish rate, the company must register in the IOSS system and declare sales there monthly.
2. A company registered in the Netherlands sells tableware worth 80 euros from China to a buyer in Spain. The order is placed and paid through an electronic platform, then the company sends it to a buyer in Spain from China. The product must be sold with VAT at the rate of Spain, the site declares VAT on this sale.

Health Care

1. You sell ebooks and graphic designs online through your social media for over € 10.000 per year, buyers live in different EU countries.
2. You provide cloud storage services worth over € 10.000 per year to customers in France and Italy.
3. You have an online store from which you deliver goods from the Netherlands to customers in Latvia worth over 10.000 euros per year.
4. You are organizing art exhibitions in Slovakia (there is no threshold amount, you need to register immediately).
5. You are renovating a house in Belgium (there is no threshold amount, you need to register immediately).
6. You are restoring a car in France (there is no threshold amount, you need to register immediately).

It is important that the above schemes are designed to simplify the declaration and they are not mandatory for use.

That is, if you, for example, provide electronic services, and don't want to register and submit reports through OSS, you don't have to. The alternative is to register for VAT in each country in which you have customers, this will typically entail a much greater administrative burden and additional financial costs.

If you have any doubts whether these schemes apply to your activities or you have questions, we are ready to analyze your specific case and develop an individual work scenario. If you still have questions, you can sign up for a consultation with us.