OSS

OSS Guide – Everything You Need to Know

From the 1st July the EU will reshape the current model of VAT obligations for B2C ecommerce sellers. Alongside the introduction of an Import One-Stop-Shop (IOSS), the arguable centrepiece of the new changes is the introduction of a One-Stop-Shop (OSS).

So what exactly will the OSS do? Who will it affect and what will the benefits be? Read our Everything You Need to Know about the One-Stop Shop (OSS) to learn more.

What’s happening on July 1st?

Currently, all EU-based businesses making distance sales of goods above a certain threshold (€35,000 or €100,000 depending on the jurisdiction) to buyers located within the EU must register and pay VAT in the buyers’ Member State.

Understandably, this can be a time-consuming and costly process.

However, from the 1st July, a number of new VAT eCommerce rules will come into force. A new €10,000 threshold applicable to all EU-wide sales will be introduced. Sales up to this threshold are taxed to VAT in the country where the selling business is located. If the threshold is exceeded, businesses can register with the One-Stop-Shop (OSS). The OSS will eliminate the obligation on businesses to VAT register in every country where sellers are making their sales.

This allows easier declarations and payments of VAT due in other states.

What is the One-Stop Shop?

The One Stop Shop will simplify and streamline 95% of VAT obligations for sellers of goods and services.

How?

Through the One-Stop Shop, businesses can:

  • Register in a single Member State
  • Declare and pay all VAT due in a single electronic quarterly return.
  • Work with the tax administration of their own Member State, in their own language, even when selling cross border.

How can my business register for the OSS?

Each EU member state has an online One-Stop-Shop portal where your business can register. This registration will be valid for all sales in other EU member countries.

How should I use the OSS?

There are a number of things your company should do if you plan on using the One-Stop-Shop. This is not an exhaustive list:

  • Your company needs to apply the VAT rate of the state where the goods are dispatched to or services are supplied.
  • Your company will collect VAT from the buyer on intra-EU distance sales of goods or on supplies of services.
  • A quarterly VAT return will need to be submitted through the One-Stop-Shop portal of the Member State in which you are OSS registered.
  • Your company should make a quarterly payment of the VAT declared in the VAT return to the member state in which you are OSS registered.
  • Companies should keep diligent records of all eligible OSS sales for a minimum of 10 years.

EU Member States – VAT Registration

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden

Taxback International – Two Decades of VAT Expertise

Taxback International have over twenty-five years of experience in VAT compliance and consultancy experience with more than 12,000 clients worldwide. Combined with our innovative technology platforms, including Comply and TBI Pay, Taxback International create customer-focused solutions that simplify the complexities and frustrations of traditional approaches to VAT compliance.

Taxback International offers registration and ongoing compliance services, as well as consultancy on available options for businesses wishing to register for the OSS or IOSS.
Speak to one of our VAT experts today.