Making VAT work
for all EU businesses

The Situation

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

The Problem

Businesses that place their own inventory in several EU countries have to register VAT in every country in which they store stock, even before a final sale has taken place. This is costly, time consuming and completely unnecessary in a 21st Century VAT system.

↑

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 needs to extend the existing VAT One Stop Shop system to all goods transactions where the seller is not located in the EU country of taxation.

  • Extension to cross-border movement of own inventory across the EU
  • Extension to domestic sales from distribution hubs by a seller that is not established in that EU country
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?

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

Position Paper [PDF - 189 KB]
FAQ

Your voice
matters to us!

Participate in our poll and see the opinion of others.

rotate icon For a better user experience,
please switch your device to portrait mode.