One Stop Shop – important aspects

The companies that must register in One Stop Shop (OSS) are those that according to article 278^1, letter c) of the Fiscal Code, according to which the total value, without VAT, of the operations mentioned in letter b) does not exceed, in the current calendar year, 10.000 euro or the equivalent of this amount in national currency and has not exceeded this amount during the previous calendar year. This amount refers to natural persons.

According to Article 315 of the Tax Code which refers to the One Stop Shop (Special scheme for intra-Community distance sales of goods, for domestic supplies of goods made by electronic interfaces facilitating such supplies and for services provided by taxable persons established in the European Union but not in the Member State of consumption) we can find the following characteristics:

 a) taxable person not established in the Member State of consumption means a taxable person who has a place of business or a fixed establishment in the territory of the EU but does not have a place of business or a fixed establishment in the territory of the Member State of consumption;

b) Member State of registration means the Member State in the territory of which the taxable person has his place of business or, if he does not have his place of business in the European Union, the Member State in which he has a fixed establishment;

c) Member State of consumption may be one of the following:

 

1. in the case of the provision of services, the Member State where the provision of services takes place in accordance with Article 278;

2. in the case of the intra-Community sale of goods at a distance, the Member State in which dispatch or transport of the goods to the customer is completed;

3. in the case of the supply of goods by a taxable person who facilitates such supplies in accordance with Article 270 paragraph (16), where the dispatch or transport of the goods supplied begins and ends in the same Member State, that Member State.

 

            This special regime can be used by any taxable person who has its place of business in Romania or, if it does not have its place of business in the European Union, has a fixed establishment in Romania. The special scheme can also be used by any taxable person who does not have its place of business in the European Union, but has several fixed establishments in the European Union, if it has a fixed establishment in Romania and chooses Romania as its Member State of registration. The special regime can be used in the following cases:

 

  • by any taxable person making intra-Community distance sales of goods;
  • by any taxable person who facilitates the supply of goods in accordance with Article 270 paragraph (16), where the dispatch or transport of the goods begins and ends in the same Member State;
  • by any taxable person supplying services to a non-taxable person, where the taxable person is not established in the Member State of consumption.

 

(3) If Romania is the Member State of registration, the respective taxable person must file an electronic declaration of commencement of its activity subject to the special regime with the competent tax authority . The taxable person must notify, by electronic means, the competent tax authority in case of cessation of activity or in case of subsequent changes that exclude him from the special regime.

*For taxable transactions carried out under this special scheme, the taxable person shall use only the VAT registration code allocated by the Member State of registration. If Romania is the Member State of registration, the registration code used by the taxable person is the one allocated to him under Article 316 or Article 317.

It is important to mention that the taxable person applying the special scheme will be excluded from the application of this scheme by the competent tax authority  in any of the following situations:

a) the taxable person informs the tax authority that he no longer makes supplies of goods or provides services for which the special scheme governed by this Article is used;

b) the competent tax authority establishes that the taxable operations of the taxable person have ended;

c) the taxable person no longer meets the requirements for being allowed to use the special scheme;

d) the taxable person repeatedly violates the rules of the special scheme.

 

By the end of the following month after the end of each calendar quarter, the taxable person shall submit to the tax authority a special VAT return, i.e. the 398 VAT Return One Stop Shop, whether or not goods have been supplied or services have been rendered for which the special scheme governed by this Article is used.

The special VAT return must contain the following information:

a) the special VAT registration code provided for in paragraph 4;

b) the total amount, exclusive of tax, the applicable rates of tax and the total amount of the corresponding tax subdivided by rates, due to each Member State of consumption in which the tax is chargeable, in respect of the following supplies of goods or services covered by this Article made during the tax period:

 

  1. intra-Community distance sales of goods;
  2. supplies of goods in accordance with Article 270(16), where the dispatch or transport of those goods begins and ends in the same Member State;
  3. the supply of services;

 

c) the total amount of tax due in the Member States of consumption.

The special VAT return also contains changes relating to previous tax periods.

The special VAT return is drawn up in euros. If the supplies of goods and services are paid for in other currencies, the exchange rate in force on the last day of the tax period for which the return is to be completed will be used. The exchange rates used are those published by the European Central Bank for the day in question or those of the following day if they are not published on that day.

The taxable person must pay the total amount of tax due in the Member States of consumption, with reference to the corresponding VAT return, into a special euro account indicated by the competent tax authority by the date on which he is required to submit the special return.

The taxable person making use of this special scheme must keep registrations  of the transactions to which this special scheme applies to enable the tax authorities of the Member States of consumption to determine whether they are correct.

These registrations  shall be made available electronically at the request of the competent tax authority and the Member States of consumption. The non-established taxable person will keep these registrations  for a period of 10 years from the end of the year in which the transactions were carried out.

Registration in the OSS system can be done through the SPV virtual private space.

 

Legal basis:

  • -Fiscal Code (approved by Law no.227/2015, published in MO no.688 of 10.09.2015), as amended and supplemented;
  • -Methodological Norms for the application of the Tax Code (approved by Government Decision no.1/2016);
  • -www.anaf.ro .