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One Stop Shop – Northern Ireland

One Stop Shop - Northern Ireland

VAT

As of 1st July 2021, the existing VATMOSS legislation for digital services was extended to encompass the One Stop Shop. On the withdrawal of EU distance selling threshold simplifications, UK businesses making qualifying sales to EU customers are required to account for VAT at the relevant rate in the country in which the customer is based using the One Stop Shop, without a requirement to register for VAT in each member state in which sales are made.

HMRC have recently issued guidance on one unexpected consequence of the implementation of OSS in that UK businesses making qualifying sales (i.e. sales under £135) to customers located in Northern Ireland will also need to account for these sales on their OSS return, as opposed to their UK VAT return as was the case prior to 1st July. UK businesses not registered for OSS will account for these sales to NI customers on their UK return in the normal way and, additionally, sales to NI that do not qualify for OSS, for example those over £135 in value, will also account for these on their UK return.

If you or your client make sales that fall under the scope of OSS to customers located either in NI or the EU and require advice on how to account for VAT using OSS, please contact one of our expert consultants on our free VAT helpline on 0161 477 6600.

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