What is OSS (One Stop Shop)
What changes on 1 July 2021?
Currently EU businesses have to register and pay VAT in the buyers’ Member State when selling goods to consumers and the sales are above a certain threshold (€35.000 or €100.000, depending on the Member State).
But the times they are a-changin’, starting 1 July 2021:
- A new EU-wide threshold of € 10 000.
- With sales below this new threshold, you can continue to apply the domestic rules for VAT (including the SME exemption scheme) on your cross-border sales.
- If your sales are above this threshold, you are liable for VAT in the Member State where your buyers are located.
- Businesses will be able to register in a new OSS – where they can easily declare and pay the VAT.
What do you need for the Union OSS:
- The VAT rate of the Member State where the goods are dispatched to or where the services are supplied.
- Collect VAT from the buyer on intra-EU distance sales of goods or on supplies of services.
- Submit an electronic quarterly VAT return via the OSS portal of the Member State where you are registered for OSS.
- Make a quarterly payment of VAT declared in the VAT return to the Member State where you are registered for OSS
- Keep records of all eligible OSS sales it facilitates over 10 years.