Post by straightlight » Wed Jun 09, 2021 7:35 pm

English translated version of the original topic posted by OSWorX: viewtopic.php?f=37&t=224229#p822623 about the new regulation regarding the reporting of sales tax that will be implemented . Should different terms be used based on the translation, please address on the topic.

On July 1, 2021, a new regulation regarding the reporting of sales tax will be implemented.
This rule is based on an EU agreement: https://ec.europa.eu/taxation_customs/b ... ommerce_de
It replaces the MOSS (Mini-One-Stop-Shop) that has been in effect since 2015.

What changes?
From July 1, 2021, the limit for participation in the OSS is EUR 10,000 (delivery threshold) gross.
For the entire EU area.
Previously, different delivery thresholds (between 35,000 and 100,000 euros) were valid for each country.

practice
An example is given in the webshop in Germany.
As soon as he sells his products in countries other than Germany and these total sales exceed the value of EUR 10,000 gross per calendar year (= threshold value), the owner of the web shop would have to register with the local finance office in each country in which the goods are sold pay the respective sales tax.
This is standardized with OSS, it is sufficient to register in the respective country of business (here Germany) and to report the VAT for all countries at once (as with MOSS)

Waiver of delivery threshold
It would also be possible to declare that the delivery threshold is waived.
Then, however, the VAT still has to be paid. in every country in which they are sold.

What is to be reported
All sales (gross sums) must be reported in the report to OSS.
This also includes all services and virtual sales (eBooks, webinars, software, etc.).

The only exceptions are:
- Vehicles
- used things
- Works of art, antiques, collectibles
- Items which are assembled or installed by the supplier himself or on his account

How do I display the correct gross amount in the webshop
According to the Price Information Regulation (PAngV) https://de.wikipedia.org/wiki/Preisdatenverordnung, all prices for end consumers (B2C) including sales tax must be displayed in the webshop. The tax itself or the tax rate is not.
For web shops that offer products in different countries with different tax rates (example DE = 19%, AT = 20%), this requires a dynamic price display (based on the different tax rates).
Attention: Maintaining the same gross prices for countries with different tax rates could violate Art. 4 Para. 1 of the Geoblocking Regulation (VO [EU]) 2018/302) https://eur-lex.europa.eu/legal- content ... 32018R0302
This says that
According to Article 20 of Directive 2006/123 / EC of the European Parliament and of the Council (3), Member States must ensure that service providers established in the Union do not treat recipients of services differently on the basis of their nationality or place of residence.
In practice, this means that a product which Germany has to be displayed and sold at EUR 99.00 gross for buyers from Austria at EUR 99.84 gross (net approx. 82.20).

If, on the other hand, the gross price remains the same, the net price and thus ultimately the margin are reduced because Austria would have to pay 20% tax (Germany still 19%).

Where can I sign in
Germany: https://www.bzst.de/DE/Unternehmen/Umsa ... toc-entry3
Austria: https://www.usp.gv.at/steuern-finanzen/ ... -Shop.html

miscellaneous
Overview of country taxes: https://ec.europa.eu/taxation_customs/e ... se-tedb_de
1. Declaration about OSS is due on October 15, 2021 (period July 1, 2021 - September 30, 2021)
Last edited by straightlight on Wed Jun 09, 2021 9:30 pm, edited 3 times in total.

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Straightlight
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Post by straightlight » Wed Jun 09, 2021 7:37 pm

I really hope similar laws as OSS gets implemented in Canada as well soon enough especially for online purchases!

Dedication and passion goes to those who are able to push and merge a project.

Regards,
Straightlight
Programmer / Opencart Tester


Legendary Member

Posts

Joined
Mon Nov 14, 2011 11:38 pm
Location - Canada, ON
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