OSS, or One-Stop-Shop, is a European Union scheme that makes it easier for e-commerce sellers to manage their VAT declarations for sales within the EU. This system allows sellers to handle VAT declarations in one member state for all cross-border sales within the EU, provided you exceed the annual €10,000 in distance sales. This significantly simplifies administration, especially for companies active in multiple EU countries. But how do you set this up if you sell on Shopify? In this article, we explain in four short steps how you can do it!
Registration for OSS
Before you can set up OSS on Shopify, you must of course first register for the OSS scheme in an EU member state. This can be the country where your company is based, or another EU country if you meet the criteria there. After registration, you will receive a unique OSS VAT number.
Setting up OSS on Shopify
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Step 1: go to your admin environment
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- Log in to your Shopify admin environment and navigate to ‘Settings’ at the bottom left, then choose the ‘Taxes’ tab.
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Step 2: configure your EU VAT settings
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- Once you are on the ‘VAT’ page, navigate to the ‘Tax Regions’ section, and select ‘European Union’. Then click on ‘edit’.
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Step 3: select OSS registration
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- After clicking on ‘set up’ in the VAT settings, click on ‘collect VAT’ and select ‘One-Stop Shop registration’ in the pop-up window called ‘Manage VAT registration’.
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Step 4: add your OSS VAT number
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- Click ‘next’ and then add your unique OSS VAT number to the settings.
And that’s it! Now you can sell across borders on Shopify using the OSS scheme. Is the One-Stop-Shop scheme still a big question mark for you? Read more about OSS in one of our articles!