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The EU e-commerce One Stop Shop: where, what and how

The European Commission has issued guidelines clarifying many of the provisions of the new One Stop Shop (OSS). The OSS, which is an extension of the Mini One Stop Shop (MOSS), is one of the features of the EU e-commerce VAT package. The OSS will simplify VAT registration for businesses engaged in e-commerce sales to customers in EU states.

What is the benefit of the OSS?

Under the old rules, you have to register for VAT if you exceed the distance selling threshold in any EU member state. In practice, that often means that e-commerce sellers must register and comply with VAT in multiple jurisdictions.

Using the OSS, you can file a single digital quarterly VAT return that accounts for your sales across the EU.

Is the One Stop Shop obligatory?

The OSS provides clear advantages, greatly reducing the administrative burden of complying with your e-commerce VAT obligations. However, you can elect not to register for the scheme.

Note that you cannot pick and choose where to apply the scheme. Once you opt into the OSS, it applies on supplies to customers in all EU member states.

The OSS does not replace your normal VAT return

When you opt into the OSS, you will still have to file your domestic VAT returns as normal.

Which country must I register in?

You can only register for the OSS in one country, your Member State of identification.

If your business is established in an EU member state, you must therefore register in that state.

When the business is not established in the EU but has a fixed establishment in an EU state, then you must register in that state.  If the business is not established in the EU but has a fixed establishment in more than one EU states, you can choose one of those states to register in.

If a businesses is neither established in the EU nor has a fixed establishment in any EU state, the non-Union scheme applies. In that case, the business can choose any Member State as the state of identification.

How can I prepare for the new regulations?

VAT regulations are constantly changing to meet the demands of a digital economy. We’ll ensure you’re always one step ahead.

Get in touch with Vatglobal for cutting-edge guidance and the advanced digital tools your business needs to adapt to changing VAT regulations.

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