OSS VAT return to be filed within October 31st, 2021

By October 31^st, economic operators registered in Italy for the purpose of the One Stop Shop regime (OSS) – EU scheme and non-EU scheme – must electronically submit the OSS VAT return related to the third quarter through the OSS portal of the Revenue Agency, by accessing their private area.

The OSS VAT return will include transactions carried out in July, August and September 2021 and must be filed also in the absence of transactions. To complete the VAT return, economic operators must access their private area from the Italian Revenue Agency website and, using the function “OSS and IOSS VAT return”, fill in the different fields of the sequential screens with the data requested in Annex D (non-EU OSS scheme) and E (EU OSS scheme) of the Italian Revenue Agency Act No. 168315 issued on June 25^th, 2021.

Among the various information that must be reported, the VAT return must also include:

• the amount, net of VAT, of the transactions carried out in the reporting period, separately for each Member State in which they are considered relevant (the amounts must be reported separately according to the type of transaction);
• the amount of VAT, divided by rates, due to each Member State.

Please consider that Italian economic operators complete the OSS VAT return only with transactions carried out towards final consumers residents in Member States other than Italy. Indeed, transactions towards Italian final consumers are subject to Italian VAT reporting obligations.

The OSS VAT return can be amended within three years from the date on which it had to be filed through a VAT return related to subsequent tax periods.

OSS VAT payment related to third quarter 2021

By October 31^st, economic operators must also pay VAT resulting from the OSS VAT return without the possibility of compensation. The payment is made in Euro and, in case the transaction occurred in a currency other than Euro, then it must be used the exchange rate published by the European Central Bank on the last day of the period to which the VAT return refers or, in the absence, that of the first following day of publication.

The payment must be made by debiting the account opened with an intermediary affiliated with the Italian Revenue Agency. In the debit request sent electronically to the Italian Revenue Agency through OSS Portal, the economic operator must indicate the IBAN code and the unique reference number of the VAT return to which the payment refers. Lacking such a bank account, the payment can be made by bank transfer according to the instructions given by the Italian Revenue Agency in the OSS Portal and reporting in the description the unique reference number of the VAT return to which the payment refers.

VAT collected will be then divided among the Member States of the consumers as reported in the OSS VAT return. If the payments exceed VAT due according to the VAT return, the sum will be reimbursed within 30 days in the account indicated by the operator. Likewise, in case it is not possible to match the payment with the unique reference number of the VAT return indicated by the operator, the sum will be reimbursed within 30 days. For late reimbursements interest accrue.

Deduction and reimbursement

Operators using OSS regime cannot deduct VAT due on purchases of goods and services from VAT due on transactions included in the special regime. Such VAT, when related to purchases of goods and services realized in Italy by non-EU subjects, can be asked for reimbursement according to Article 38-ter, par. 1 of Italian VAT Code. However, if the economic operator carries on transactions not included in the OSS regime, then VAT related to purchases of goods and services can be deduct from VAT due on transactions out of the special regime, according to general rule of Art. 19 and ss. of Italian VAT code.