ViDA: Single VAT registration
ViDA: Single VAT registration
The single VAT registration of ViDA has the objective to drastically limit the number of VAT registrations of businesses in the EU. Ideally a business should be registered in its Member State of establishment only. The new rules apply as of 1 July 2028. However, there may still be situations where a business must register in multiple EU Member States.
Components of the Single VAT registration
The single VAT registration part of ViDA covers three components:
The OSS will be extend to cover domestic supplies of goods, supplies with installation or assembly, supplies on board of an EU passenger transport and supplies of electricity, gas, heating and cooling. The latter (electricity, gas, heating and cooling) already applies as of 1 January 2027. The OSS only applies in case the supplier is not established in the Member State where those supplies are made.
Therefore a new special scheme for transfer of own goods is implemented. Under the scheme monthly VAT returns have to be filed in which transfers made are to be reported. Transfers made under the scheme do not have to be reported in the recapitulative statement (at a later stage they are also not included in digital reporting obligations). The intra-Community acquisition in the EU Member State of arrival of the goods is exempt from VAT. The scheme cannot be applied for goods in relation to which there is no full right to deduction in the Member State of arrival.
The call-of-stock arrangement will be abolished because of the new special scheme. The last transfer of own goods under the call-of-stock scheme can be made on 30 June 2028 and the ownership of the goods should be transferred to the intended customer on 30 June 2029 at the latest.
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Components of the Single VAT registration
The single VAT registration part of ViDA covers three components:
- An extension of the One Stop Shop regime (OSS).
- An extension of the mandatory reverse charge rule.
- The introduction of a special scheme for the transfer of own goods.
1. Extension of the OSS
Under the OSS businesses are allowed to file a single VAT return and make a single VAT payment for VAT due in all EU Member States. The EU Member State where the business is registered for the scheme will forward the relevant part of the VAT return and VAT payment to the EU Member State where VAT is due.The OSS will be extend to cover domestic supplies of goods, supplies with installation or assembly, supplies on board of an EU passenger transport and supplies of electricity, gas, heating and cooling. The latter (electricity, gas, heating and cooling) already applies as of 1 January 2027. The OSS only applies in case the supplier is not established in the Member State where those supplies are made.
2. Extension of the mandatory reverse charge rule
The mandatory reverse charge rule will be extended. The reverse charge rule will be applicable on all B2B-supplies of goods and services where the supplier is not established and VAT registered in the EU Member State where VAT is due and the recipient is identified for VAT in that Member State. The supplier is required to include the supply for which the VAT is reverse charged in its recapitulative statement. Later when digital reporting obligations apply, these supplies are also in scope of the digital reporting requirements. Supplies of goods under the margin scheme for second hand goods are excluded from the reverse charge mechanism.3. Introduction of a special scheme for transfer of own goods
In case a businesses transfers its own goods from one EU Member State to another it is required to report an intra-Community supply in the Member State of departure and an intra-Community acquisition in the Member State of arrival of the goods. This is a cause for multiple VAT registrations for businesses in the EU.Therefore a new special scheme for transfer of own goods is implemented. Under the scheme monthly VAT returns have to be filed in which transfers made are to be reported. Transfers made under the scheme do not have to be reported in the recapitulative statement (at a later stage they are also not included in digital reporting obligations). The intra-Community acquisition in the EU Member State of arrival of the goods is exempt from VAT. The scheme cannot be applied for goods in relation to which there is no full right to deduction in the Member State of arrival.
The call-of-stock arrangement will be abolished because of the new special scheme. The last transfer of own goods under the call-of-stock scheme can be made on 30 June 2028 and the ownership of the goods should be transferred to the intended customer on 30 June 2029 at the latest.
BDO’s position
The extension of the reverse charge rule and the OSS will be welcomed by businesses that can avoid multiple VAT registrations with the related administrative and cost burdens. It should be noted that supplies covered by the new reverse charge rule will also be covered by the digital reporting requirements as of 1 July 2030. It is unfortunate that transfers of own goods still have to be declared, but the OSS does make this process easier. Businesses will need to make sure to comply with the rules to avoid penalties or exclusion from the scheme.More information
If you have questions regarding ViDA we are of course happy to help. Please contact one of our VAT adviser for more information.Contact