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