- Businesses can be excluded from VAT OSS due to voluntary deregistration or involuntary exclusion.
- Voluntary deregistration occurs when a business stops making cross-border B2C sales, registers for VAT separately in each country, or experiences changes in business operations.
- To deregister voluntarily, businesses must inform tax authorities, submit a final VAT OSS return, and settle outstanding VAT payments.
- Involuntary exclusion happens when tax authorities remove a business due to non-compliance.
- Reasons for involuntary exclusion include late VAT returns, late or incomplete VAT payments, providing incorrect information, and failing to maintain proper records.
- Mistakes leading to exclusion include failing to meet VAT obligations before registering for OSS, applying incorrect VAT rates, misinterpreting eligible transactions, missing filing deadlines, and poor record-keeping.
- Consequences of exclusion include increased administrative burden and the need to register for VAT in each EU nation where goods or services are sold.
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
