OSS (One Stop Shop)

Because the Union OSS is a big step for E-commerce sellers which simplifies up to 95% of VAT obligations, as it allows them to:

• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services;
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return;
• Work with the tax administration of their own Member State and in their own language, even if their sales are cross-border.

OSS will reduce your VAT obligations generally however you must be aware of the new applicable threshold for intracommunity-distance sales which has been set in the amount of Eur 10.000 for the entire European Union territory. This means in some cases a significant reduction of the previous threshold from Eur 100.000 euros to Eur 10.000. As a result, there will be many sellers exceeding the new threshold and furthermore obliged to charge VAT at the applicable rate where the buyer/customer is located.