OSS/IOSS Declaration Procedure for an Estonian Company
Until July 1, 2021 rules for declaring and fulfilling turnover tax obligations under the special MOSS (MiniOneStopShop) procedure were in effect for enterprises providing e-commerce and telecommunications services. This meant that when providing digital services between different countries, it was possible to follow the rules of the country where the company is registered. Digital services include any services provided electronically, for example:
- Telecommunication services
- Broadcasting services
- Website development and hosting
- Software development and update
- Distance learning
- Creation of images, texts and data, the possibility of using digital databases
- Creation of music, movies and games, including online gambling
- Radio and television broadcasting services
- Printed materials, such as books, newsletters, newspapers and magazines
- Professional services, such as lawyers and financial advisors advising clients online
- Training services in which course materials are provided by the teacher via the Internet
- Offline data storage services
- Advertising services (for example, in newspapers, on posters or on television)
- Phone helpline/assistance
- Which an Estonian company (liable for turnover tax) will provide to persons who are not registered liable for turnover tax from other EU countries
- The place of origin of turnover, which is the country of the recipient of the service
Remote Sale and special OSS procedureBased on the Turnover Tax Law, remote sale is the alienation of goods by an enterprise of one EU state to another EU state to an unregistered person liable for turnover tax. The application of a special OSS procedure is voluntary for enterprises It is important to remember that the new procedure can only be applied if the following conditions and requirements are met:
- The seller of the goods or service provider has a location or permanent place of business in only one EU state.
- The product is sold, or the service is provided to a person who has a place of residence or residence in another EU state, which is not registered as a turnover tax obligator or a person with a limited turnover tax obligation in any EU state.
- The total turnover of remote sales within the Community and electronic communication services, as well as services provided electronically, does not exceed 10,000 euros per calendar year.