Public consultation regarding the proposals of the new amendments to the EU VAT Directive was held up to April 2022. After this consultation, the European Commission (EC) is set to publish a draft of the amendments to the EU VAT Directive this autumn. This will result in the extension of the current One Stop Shop (OSS) to all remaining cross-border B2C transactions and some B2B transactions.

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Content accuracy validation date: 29.04.2022
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The aim of new amendments is to reduce the VAT compliance burden, boost tax revenues, encourage the development of the Single Market and cut the VAT gap.
EC is planning to implement amendments at the end of 2023 or the start of 2024.
Some of the issues that will be covered by this extension are:
- Extension of the OSS to B2C transactions where seller first moves their stocks in B2B transaction to another EU state for storage before the sale (introduction of an additional reporting mechanism);
- Effect of the extension on the dropshipping model;
- Extension to other B2C goods and services supplies where a vendor is not the resident;
- Intra-Community supplies from Member State where the supplier is not established;
- Exports to a third country/territory from a Member State where the exporter is not established;
- Application of the reverse charge on B2C transaction – a movement of own stocks before sale to a consumer.