EVERYTHING YOU NEED TO KNOW ABOUT THE COMPREHENSIVE SERVICE POINT (OSS)
Information for sellers

What is changing from July 1, 2021?

Currently, EU companies that sell goods remotely within the EU above a certain threshold (EUR 35,000 or 100,000 depending on the Member State) to buyers located in another EU Member State must register and pay VAT in the buyer’s Member State . It is very costly and cumbersome. From July 1, 2021, new rules apply. Under the new rules, VAT can be paid to the Member State where the selling company is located if the sale does not exceed the threshold of EUR 10,000. Above this threshold, businesses are able to easily register with a One Stop Shop (OSS), where they can easily declare and pay VAT due in other Member States.

What is a one-stop shop (OSS)?

OSS is an electronic system that simplifies up to 95% of the VAT obligations of sellers of goods and services offered to consumers across the EU, as it enables them to:
– electronic registration for VAT purposes in one Member State for distance sales of goods within the EU and for the provision of services to individual customers (B2C), thus avoiding the need to register VAT in many Member States;
– declaration and payment of VAT due for all supplies of goods and services in one electronic, quarterly tax declaration;
– working with the tax administration of their own Member State and in their own language, even when selling abroad.
What kind of sales are OSS related to?
OSS includes:
– all services provided to consumers in the EU;
– distance sales of goods to EU buyers.
How to register with OSS?

Each EU Member State will have an online OSS portal where companies will be able to register. However, this Single Registration will be valid for all sales to consumers in other EU Member States.

What should you do if you use OSS?

If you are using OSS, you must:
– apply the VAT rate of the Member State to which goods are dispatched or where services are provided;
– collect VAT from the buyer in the case of distance sales of goods within the EU or the provision of services;
– electronically submit your quarterly VAT return via the OSS Portal in the Member State where you are registered with the OSS;
– make quarterly payments of the VAT declared on the VAT return to the Member State where you are registered with the OSS;

– keep records of all qualifying OSS sales for 10 years

Information on VAT rates throughout the EU can be found on each Member State’s website and on thewebsite of the European Commission.

If you have not yet registered at the OSS point, we invite you to use our services, please contact us.