VAT

OSS (One Stop Shop)

An EU portal that lets a business declare and pay VAT on cross-border B2C sales in one member state instead of registering in each country.

What OSS (One Stop Shop) means

The One Stop Shop simplifies VAT for businesses selling goods or services to consumers in other EU countries. Above an EU-wide annual threshold for distance sales, VAT is due in the customer's country at that country's rate. Without OSS the seller would have to register for VAT everywhere it has customers.

With OSS the seller registers once in its home country, files a single quarterly OSS return listing the VAT due per destination country and pays the total to its home tax authority, which distributes the money. The scheme covers intra-EU distance sales of goods, services to consumers and, through the import scheme IOSS, low-value goods imported from outside the EU. Records must be kept for ten years.

Related terms

IOSS (Import One Stop Shop)The import variant of OSS for goods worth up to EUR 150 sold to EU consumers from outside the EU.VAT (value added tax)A consumption tax charged on most goods and services in every EU country, collected by businesses and paid to the tax authority.VAT registration thresholdThe annual turnover below which a business may stay outside VAT. Set nationally, so it differs widely across the EU.VAT identification numberThe number a tax authority assigns to a VAT-registered business. Starts with the country code and is required on invoices and for cross-border trade.Tax returnThe periodic declaration a business files with the tax authority to report its tax base and the tax due. VAT returns are monthly or quarterly; income tax returns are annual.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

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