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.
Businesses that place their own inventory in several EU countries have to VAT register 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.
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.
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.
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.
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.
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.
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.
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.