The VAT One Stop Shop is an EU wide scheme that allows a VAT registered business to register in only one single EU Member State. The scheme was extended with effect from 1 July 2021. The extended scheme covers three special schemes: the non-Union scheme, the Union scheme and the import scheme.
The VAT One Stop Shop scheme can be used by businesses selling goods from Northern Ireland to consumers in the EU under the terms of the Northern Ireland Protocol. In order to use the scheme, sales must be above the distance selling limit of €10,000 – currently set at £8,818. The scheme only covers the sale of goods. Supplies of digital services to consumers in the EU should not be reported.
Using the VAT One Stop Shop can save affected businesses from having to register for VAT in up to 27 EU countries. If a qualifying Northern Ireland business chooses not to use the scheme, they will have to register for VAT in each EU country where they make distance sales of goods.