As of 1 July 2021, the EU e-commerce application for VAT came into force in Cyprus, in which the Mini One Stop Shop (MOSS) was expanded and converted from Mini-One-Stop-Shop to One-Stop-Shop (OSS). The application covers the following:
- New harmonized limit of € 10,000 for the place of supply of distance sales of goods within the EU and supply of telecommunications, broadcasting and electronically supplied services, below which the VAT rate of the Member State of establishment of the supplier applies.
- Extension of MOSS to all B2C services and B2C sales of goods within the EU subject to a limit of € 10,000 (covering goods and services of telecommunications, broadcasting and electronic services)
- Online market places and electronic interfaces are subject to VAT collection and payment for supplies of B2C goods (when they invoice or are responsible for the transport of goods)
- As of 1 July 2021, the Import One-Stop-Shop (IOSS) is the new e-portal that businesses can use to comply with VAT e-commerce obligations for distance selling of imported goods, except values for each shipment not exceeding 150 euros.
- A supplier is responsible for collecting VAT, even if there is an indirect involvement in the transfer of goods.
- The exemption of low value imports from VAT for goods up to 22 euros has been abolished.
- A simplification mechanism has been introduced for the collection of VAT on import by postal operators for shipments not exceeding 150 euros and for which IOSS & OSS is not used
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