Sell directly into the EU member states with a single OSS or IOSS return
Take advantage of the €899 billion e-commerce market. The One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) scheme makes EU VAT compliance easier than ever before.
Introduction to the EU’s OSS/IOSS Scheme
When were the OSS and IOSS schemes introduced?
So, let’s rewind to July 1st 2021, when the EU shook things up in the e-commerce world. The One-Stop-Shop (OSS) and Import One-Stop-Shop (IOSS) programs were introduced, marking a new era in managing VAT.
Big online players – think Amazon and eBay – took on the job of deemed suppliers, responsible for collecting and remitting VAT to EU tax authorities. Why the switch? Well, it was part of a bigger VAT overhaul – they also removed distance selling thresholds and set a unified €10,000 threshold for EU companies before needing OSS registration. The €10,000 threshold does not apply to non-EU established businesses.
They also removed with the Low Value Consignment Relief (LVCR) for goods under €22. Now, all imports into the EU need to be subject to import VAT, except those using IOSS. Goods valued up to €150 imported into the EU could now go through an IOSS return, simplifying the VAT declaration process.
What is One-Stop Shop (OSS)?
Experience the convenience of the One-Stop-Shop (OSS) for all your EU sales reports and VAT needs.
The One-Stop-Shop, or OSS, involves a single registration, where you will be able to report your distance sales with a single OSS return. An EU registered company will be required to register for OSS in their home country, however those businesses located outside of the EU will need to nominate a country where they will file their OSS returns and pay their VAT.
The taxable place of supply for EU distance sales of goods will change from the country of departure to the country of delivery. If you are storing goods within a European country, you will still be required to register for VAT and will be required to file a VAT return for all local sales within that country.
Ready to simplify your VAT handling? Contact AVASK today to get started with OSS and transform your tax reporting experience.
What is Import OSS (IOSS)?
The Import One-Stop-Shop (IOSS) simplifies the VAT process for sales under €150 imported into the EU.
It’s similar to the OSS, requiring a single registration in a chosen country. Here, you’ll file an IOSS return, detailing sales and VAT for each EU country.
Our AVASK IOSS service helps you sell across all 27 EU countries while staying VAT compliant.
What’s the benefit of registering for OSS/IOSS?
Simplifying VAT across Europe with one easy registration
Single VAT number for all EU member states
Trade across all 27 EU countries with just one OSS/IOSS registration and make cross-border sales smooth and efficient.
If you are storing goods within a European country, you will still be required to register for VAT and will be required to file a VAT return for all local sales within that country.
VAT compliance made easy
IOSS/OSS makes dealing with VAT way easier by offering a simple, streamlined registration process for businesses in the EU.
€899 billion e-commerce market
Gives e-commerce businesses a ticket to dive into the lively and vast EU market, opening up doors for cross-border trade and growth opportunities.
Frequently Asked Questions
What’s the difference between IOSS and OSS?
The OSS (One-Stop Shop) is for businesses within the EU to handle VAT for services and intra-community distance sales of goods, while the IOSS (Import One-Stop Shop) is for businesses selling imported goods to EU consumers from outside the EU with a value up to €150.
Essentially, OSS is for intra-EU transactions and IOSS for imports into the EU.
Do I need to register for OSS and IOSS?
No, it’s not mandatory to register for OSS (One-Stop Shop) and IOSS (Import One-Stop Shop).
Sellers have the option to manage their VAT through these schemes for convenience, but they can also choose alternative methods, such as registering for VAT in each EU country where they sell to consumers.
OSS is a more efficent and cheaper way to be compliant. However, If you are storing goods within a European country, you will still be required to register for VAT and will be required to file a VAT return for all local sales within that country.
How long does it take to get an IOSS number?
The process duration may vary so register for an IOSS number early to enjoy its benefits. Remember, it can’t be backdated, so it applies only to future shipments.
If you’re in the EU, register directly or through an intermediary. If you’re outside the EU, use an intermediary.
