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How to submit your One Stop Shop (OSS) VAT returns in the UK

The UK government has issued guidance on submitting VAT returns and payments when using the new One Stop Shop (OSS) to manage your VAT.  The OSS simplifies VAT compliance for e-commerce sales to customers in the EU.

Why is the UK issuing guidance on the OSS?

The OSS is an EU initiative to make VAT compliance easier when distance selling in multiple EU member states. E-commerce sellers need only register for the OSS in one EU country to manage VAT on all applicable sales. 

However, if you sell goods from Northern Ireland to customers in the EU, then you can choose to use the OSS. That’s because the Northern Ireland Protocol, which comprises part of the Brexit agreement, sets special terms of trade between Northern Ireland and the EU. HMRC continues to manage VAT in Northern Ireland.

When must you submit your OSS returns to HMRC?

According to the new guidance, you must pay any VAT owed by the last day of the month following the end of each quarter. For example, for Q1, ending 31 March, you must submit your OSS return by no later than 30 April. 

If you miss the deadline, HMRC will issue a reminder on the 10th day after the deadline. 

Severe consequences for missed OSS deadlines

Failing to meet the deadline can have significant consequences. HMRC warns that businesses will “be excluded from the OSS Union scheme if you miss the return and payment deadline for 3 consecutive periods and do not submit your return or payment within 10 days of a reminder being sent.”

The exclusion lasts for at least two years. If you are excluded from the OSS and sell in several EU countries, you will likely face the obligation to register for VAT in multiple countries

Submitting your OSS VAT return

Access to the OSS service will be via Government Gateway. To submit your OSS return to HMRC, you need to use the Government Gateway user ID used when registering for UK VAT.

The simplest way to access the OSS

Vatglobal’s integrated OSS solution makes using the OSS incredibly simple, easy and efficient. Vatglobal provides a single, centralised VAT solution to your global VAT obligations. It’s the easiest way to ensure you get the most out of the OSS and are always VAT compliant, everywhere you have an obligation. Get in touch with Vatglobal for a complete OSS VAT compliance solution for your business. 

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