The One-Stop Shop (OSS)
The OSS is a centralized platform enabling online sellers to fulfill their VAT reporting and payment duties for cross-border trade in EU goods via a single tax return. As of July 1, 2021, it replaces country-specific delivery thresholds with a uniform EU-wide threshold of EUR 10,000. This means VAT is due in the destination country when distance sales exceed this threshold. Traders can either register for VAT in each destination country or opt for the simplified OSS procedure.
Benefits of the OSS for Online Sellers
Online sellers, including e-commerce platforms and marketplaces, stand to gain from the OSS in several ways:
- Simplified VAT Reporting and Payment: Registering for the OSS allows online sellers to consolidate VAT reporting and payments for all EU Member States in one place, eliminating the need for multiple VAT registrations.
- Reduced Red Tape: The OSS streamlines VAT compliance, saving time and resources previously spent navigating diverse VAT rules in each destination country.
- Enhanced Compliance and Reduced VAT Fraud: The OSS promotes compliance by providing a transparent framework for VAT reporting and payment, preventing VAT fraud and ensuring a level playing field for all EU e-commerce businesses.
Registration and Participation in the OSS
To participate in the OSS, online sellers need to register for VAT in their home country. In Germany, for instance, the Federal Central Tax Office (BZSt) handles OSS registration. Each EU Member State has its own registration contact point. Once registered, online sellers can start using the OSS for VAT reporting and payments.
If you’re registering for OSS or IOSS and looking for support in handling your orders in the EU, Logistiko can be your business partner. Contact us.
