What is the OSS?
The OSS is an electronic portal that allows suppliers to declare and remit VAT on their EU-wide business-to-consumer (B2C) sales. The OSS does not take away the requirement for businesses to charge VAT to their customers in each EU member state, however, it does allow them to register in one EU member state to report and pay the VAT on these transactions via an OSS return.
The mechanism can be used to report VAT on B2C sales of goods between EU member states, as well as specific services, such as admission, transportation, accommodation, and some land-related services, where these are supplied to consumers.
When using the OSS, businesses will still require VAT registration in the country where they hold a stock and are selling from. This is then used to account for VAT on the domestic sales to consumers from a stock in these countries, and also the transfer of any inventory between different member states under these local VAT registrations.
There is an OSS threshold of €10,000 based on EU-wide sales that is only applicable to online sellers established in the EU. This means there is no threshold for non-EU sellers who have a requirement to register for the OSS and account for VAT from the first sale they make, otherwise they risk having to register in every EU country where they are making B2C supplies.
How to register for the OSS?
You can register if you’re a seller established:
- In an EU member state – You will need to apply for the OSS in the country where you’re established.
- In a non-EU country – You can register for the OSS in an EU member state from where you dispatch your goods or can opt to register in any EU member state if you sell services only.
As a non-resident seller, you may also require a VAT representative when applying. The VAT representative will help you to correspond with tax authorities, submit your OSS returns, and most importantly to stay VAT compliant. To establish if you need a VAT representative please get in touch.
Selling via online marketplaces (OMP)
Under the OSS, all OMPs such as Amazon and eBay become liable for collecting VAT on sales of goods and services made by non-resident sellers to consumers, facilitated through their website. This includes all domestic and intra-EU sales to consumers made by non-EU sellers and forces the OMP into charging and accounting for the VAT on these types of transactions.
This means that the non-EU sellers obligation to charge VAT to consumers on these types of sales is removed, however, they will still be required to report sales to the OMP in a domestic VAT return in the country where the goods were sold from.
Why use Fiscal Solutions for your OSS VAT registration?
You will benefit from the unique way in which we provide OSS registration support throughout the EU via a single point of contact. By employing a multi-lingual team of VAT compliance specialists, it enables us to deal directly with tax authorities in their own language, helping you to achieve your business goals in a timely and efficient manner.
Our specialist team provides clients with the highest calibre of advice, using our in-depth knowledge of the VAT registration process built up from decades of experience.
We help you simplify the complexities of the VAT registration process, address tomorrow’s challenges in regards to the VAT reporting, and take the fear out of the equation. We anticipate problems before they happen and offer tailor-made solutions. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.
Get in touch
Call us today on +44 (0)20 7831 5115 or fill in the form below and a member of our team will be in touch.