OSS: What to know about the One-Stop Shop
By Alexander Maasik
The OSS is part of the EU VAT e-commerce package. This package went into effect in July 2021. Before July 2021, it was called the Mini One Stop Shop.
The Mini One Stop Shop (MOSS) was an electronic system for service providers who supply telecommunications, broadcasting, and electronic (TBE) services to consumers in the EU. MOSS allowed companies to declare and pay the VAT due in all EU countries in one single Member State. On July 1st, 2021, the MOSS was extended to all B2C services in the EU where the supplier is not established. This new OSS also applies to distance sales of goods within the EU.
Another important thing is that the existing thresholds for distance sales of goods within the EU were abolished. They were replaced by a new EU-wide threshold of EUR 10 000. Below this threshold, the supplies of TBE services and distance sales of goods within the EU may remain subject to VAT in the Member State where the taxable person is established.
Also, special provisions are introduced. Now online marketplaces facilitating supplies of goods are deemed for VAT purposes to have received and supplied the goods themselves.
Union OSS and non-union OSS.
The OSS is actually divided into two distinct schemes: the union OSS and non-union OSS. Both of these schemes are similar but apply to different companies and situations.
The Union OSS scheme covers the sale of physical products and goods inside the EU. This also covers intra-EU distance sales of goods, and certain domestic supplies facilitated by electronic interfaces. The Union OSS is meant for taxable persons established in the EU, taxable persons not established in the EU, and electronic surfaces established in or outside the EU that facilitate supplies of goods.
The Non-union OSS covers the sale of cross-border services to EU consumers by companies not established in the EU. This covers all the B2C services that these companies offer and that take place inside the EU.
Eurora can help you set up and manage your sales under both of these schemes. Our OSS service is meant for all non-EU companies who are selling goods to EU customers. And who are importing goods to the EU through the Netherlands.
Who should use One-Stop Shop (OSS)?
Ecommerce sellers in the EU, whose annual revenue is more than 10 000 euros, must join the One-Stop Shop (OSS) scheme. Companies whose annual revenue is less than 10 000 euros, can also join the OSS to make declaring and paying VAT easier for themselves.
While using the OSS is voluntary for many companies, it is by far the easiest way to handle one’s tax obligations in the EU. As you only need to worry about one VAT form for all goods that you ship to the EU.
All companies using this business model must first apply for a VAT ID in Netherland (a precondition for OSS registration and sales in Netherland). And then opt into the OSS scheme. The OSS scheme allows companies to declare all their sales in the EU via Netherland. Instead of registering in each EU member state for VAT ID.
Integrations with other Eurora services.
In addition to the OSS service, Eurora offers full compliance solutions to non-EU sellers to fully automate their cross-border sales process.
With Eurora you don’t need to worry about any trade regulations or common risks associated with cross-border trade. Our automated AI-based solution will assign correct HS codes to your package. Then calculate the right VAT based on the destination country, generate the electronic declaration, and deal with the EU Tax Authorities. The system also checks each order against prohibited and restricted item lists of destination county and scans the buyer against denied party lists. Making sure, you don’t break any laws while doing business.
Eurora’s services are developed to fully automate all aspects of cross-border trade and to make shipping goods to any part of the world as easy as possible. Eurora’s fully automated and science-backed AI-based solutions allow companies to save time and resources while handling large amounts of data near-instantly and precisely.