OSS - E-shops in the EU - VAT solutions
What do we offer to e-shops and companies supplying goods to consumers in EU countries?
We provide a unique service to companies that sell goods to consumers in EU countries, allowing them to leverage our years of experience in communicating with foreign tax authorities regarding VAT management. We will file VAT returns under the OSS scheme and respond promptly as authorized representatives to inquiries and requests raised by tax authorities, whether through the Tax Office in Brno or directly. We relieve the administrative staff of e-shops and similar suppliers from communication burdens that require specific knowledge and experience.
What is OSS?
One Stop Shop (OSS) is an electronic platform. With this platform, you will only pay VAT to all countries through this single access point. You do not need to register for VAT in other EU member states. The only tax office you will communicate with is the Tax Office for the South Moravian Region, Brno territorial office.
Who can use OSS?
- Providers of cross-border services to consumers in the EU
- E-shops (sellers of goods at a distance) sending goods to customers in the EU
- Operators of online marketplaces
Is it mandatory?
No, but after registering for OSS, the obligation to register for VAT and comply with local legislation in other EU member states is eliminated. If you do not register for OSS and the value of goods shipped within the EU exceeds 10,000 EUR, VAT will need to be paid in individual states after special registration.
From when can I use OSS?
The rules came into effect on July 1, 2021, and registration can be done at any time.
What is important before registering for OSS?
Before registering, you should consider what type of e-commerce you actually operate. OSS has 3 different schemes, and separate registration is required for each:
- EU Scheme intended for e-shops (cross-border sales at a distance) and providers of cross-border services to end consumers.
- Import Scheme intended for senders of goods located outside the EU sending goods valued up to 150 EUR.
- Non-EU Scheme intended for providers of cross-border services from outside the EU to end consumers in the EU.
Not sure how to proceed? Need advice? Contact us.
We have MOSS – do we need to register again?
No, MOSS registrations automatically transitioned to OSS as of July 1, 2021. Persons registered under the EU scheme in MOSS will automatically continue under the EU scheme in OSS. Persons registered under the non-EU scheme in MOSS will be transitioned to the non-EU scheme in OSS.
We have MOSS – does anything really change for us?
Two things change:
- there is an expansion of the services covered by (M)OSS,
- the bank account for VAT payments – the first payment to the new account will occur for the 3rd quarter of 2021.
EU Scheme – e-shops and sales of goods to the EU
The EU Scheme in the One Stop Shop (OSS) provides significant administrative relief to all who are based in the EU and:
- sell and ship goods to other EU member states to end consumers (previously "shipping goods"), i.e., e-shops,
- provide services to end consumers in other EU member states,
- deliver goods to end consumers through so-called electronic interfaces.
When is OSS in the EU scheme beneficial for me?
If you have an e-shop, send goods to other EU member states to end customers, and the total volume of these supplies exceeded the limit of 10,000 EUR in the previous calendar year or in the current calendar year. In that case, you must pay VAT on goods or services in the state of actual consumption (i.e., the place of supply is in the consumer's state). If you were not registered through OSS, you would need to examine the registration conditions for VAT separately in each member state. You would then fulfill obligations in individual member states separately.
Is the limit of 10,000 EUR for each country?
No, according to the new EU e-commerce rules, this limit applies in total for all member states. Therefore, those whose revenues through e-shops significantly increased in 2020 or 2021 by shipping to other member states should be particularly cautious.
Do B2B goods and services count towards the limit?
No, only shipments and services provided to end customers are included in the limit.
I meet the 10,000 EUR limit, what options do I have?
You have two options. Either register under the EU scheme in OSS and file a single quarterly return for all states through OSS to the Czech tax authority. Or "the old way," register for VAT in all member states where you send goods and file VAT returns according to national legislation everywhere.
What are the advantages?
It is estimated that the introduction of OSS in the EU scheme can lead to a reduction in administration by up to 95%. Your clients will certainly appreciate that when purchasing, the correct VAT will already be accounted for, so they will know the final price, and you will pay the VAT for them.
I want to register for OSS, what do I need to do?
Before registering for OSS, you must already be a VAT payer or at least an identified person. If you are not, you need to initiate the necessary steps by registering for VAT. Otherwise, you just need to submit an electronic application for OSS.
Not sure how to proceed? Need advice or help with registration? Contact us.
From when can I use the EU scheme in OSS?
Registration is effective from the first day of the tax period following the submission of the registration application. The tax period in the EU OSS scheme is the calendar quarter. If you submitted your application by June 30, 2021, you can use the EU scheme from July 1, 2021.
Not sure how to proceed? Need advice? Contact us.
Import Scheme
The Import Scheme in the One Stop Shop (IOSS, "Import One Stop Shop") serves to collect VAT on imported goods that do not exceed 150 EUR in value. VAT through IOSS will be paid by the seller. Buyers will no longer have to pay VAT along with customs fees at the time of import.
Why a special scheme for imports?
Until June 30, 2021, there was an exemption for VAT on imported goods valued up to 22 EUR. This has been abolished as of July 1, 2021. Even small shipments are therefore subject to VAT in the EU.
Who is IOSS intended for?
For sellers who import goods into the EU in shipments valued up to 150 EUR. If the seller does not have a registered office in the EU, they must have a representative who will fulfill the obligations on their behalf.
Not sure how to proceed? Need advice? Contact us.
Non-EU Scheme
The Non-EU Scheme in the One Stop Shop (OSS) is intended only for persons who do not have a registered office or establishment in the EU and provide services to end consumers here. This applies to B2C service providers from third countries.
Not sure how to proceed? Need advice? Contact us.