Making VAT work
for all EU businesses

The Situation

While great progress has been made with VAT ONE STOP SHOP 1.0, the current EU VAT system still disadvantages millions of small and medium-sized enterprises by leaving out and important aspect of EU trade.

Illustration of a SME building
Illustration of a large anchor, larger than the vessel

The Problem

While great progress has been made with VAT ONE STOP SHOP 1.0, the current EU VAT system still disadvantages millions of small and medium-sized enterprises by leaving out and important aspect of EU trade.

↑

13 documents

on average to complete one VAT registration process
↑

100 days

on average to get a VAT number
↑

Around 8.000€

per country per year in compliance costs
↑

Up to 60

VAT filings per country per year to be submitted

The Solution

The EU Commission’s proposal solves this problem with a VAT One Stop Shop 2.0 including:

  • A transfer module for cross-border movement of own inventory across the EU
  • An extension of the existing VAT One Stop Shop to domestic B2C sales from distribution hubs
  • Introducing an EU harmonized reverse charge mechanism for B2B sales.
2.0

Towards a unified
VAT solution

VAT One Stop Shop 2.0

A One Stop Shop 2.0 would enable businesses that sell remotely to have a single EU VAT registration and to report all VAT through a single digital VAT portal on their entire EU logistics chain – from procurement and inventory placement to sales to final consumers.

The Benefits

Simpler. Fairer. More efficient.

Extending the EU VAT One Stop Shop system to all transactions will be to the benefit of all: for governments, for businesses and for consumers.

Tax authorities

The One Stop Shop 2.0 will drive VAT compliance and offers a simple solution to ensure all cross-border goods movements can be easily reported and audited within a single One Stop Shop scheme.

National governments

The One Stop Shop 2.0 will result in a more competitive EU market and increased trade, leading to additional VAT revenues and helping to support the post pandemic economic recovery.

Businesses

The One Stop Shop 2.0 will help businesses - in particular the small businesses who are the backbone of the EU economy - to get better access to intra-EU trade and be more competitive in an increasingly globalized and omnichannel retail environment.

EU Consumers

The One Stop Shop 2.0 means customers will benefit from larger selection for their purchases, more competitive prices and better shopping experience when buying goods online.

Not convinced yet?

Hear the case for extending the EU VAT One Stop Shop
directly from tax advisors and an EU SME.

Still not convinced?

Get more information – read our Position Paper and Frequently Asked Questions.

Position Paper [PDF - 187 KB]
FAQ

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