We welcome that the EU Commission has proposed new rules on Single VAT registration as part of the VAT in the Digital Age proposal . The new rules will remove the requirement for businesses to VAT register in each EU country where they store inventory and from which they sell to local customers. This will significantly simplify VAT obligations for businesses, especially SME’s, as it reduces the need for costly, time-consuming and often prohibitive VAT registrations to sell and store across the EU.
We encourage EU countries to prioritize negotiations on this workstream as it will strengthen the EU single market and remove blockers for cross border trade.
Find out why removing VAT registration requirements for pan-EU inventory storage and onward sales is important for businesses below.
See our joint paper
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.
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.
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. 
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.
Hear the case for extending the EU VAT One Stop Shop
directly from tax advisors and an EU SME.
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