Main facts about the One-Stop Shop (OSS) scheme
As of 1 July 2021, all member states of the European Union will implement a new e-commerce VAT system which includes a One-Stop Shop (OSS) and Import One-Stop Shop (IOSS).
Both of those programs aim to simplify compliance obligations so as to promote cross-border online trade and trade across the EU.
What is OSS?
OSS simplifies up to 95% of VAT obligations for sellers of goods and services in the EU. A seller can register for VAT in a single EU country for all intra-EU distance sales of goods and business-to-consumer services, then declare and pay the VAT due using a single quarterly return. OSS allows sellers to avoid VAT registration in multiple EU countries.
Main Facts about OSS:
- The OSS took effect on 1 July 2021
- threshold of 10 000 EUR will apply to all EU countries
- 22 EURO exemption was removed
- Whether your company is enrolled in OSS or not, VAT must be paid on every imported good or service
- OSS is not compulsory but recommended
- Reporting of OSS VAT returns and payments is required quarterly
OSS covers the following sales:
- All services provided to EU consumers
- All sales of goods to EU consumers
Who can use OSS?
- EU-based e-commerce sellers are eligible for OSS