Although the One-Stop-Shop (OSS) scheme has been in effect since July 1, 2021, we still receive regular inquiries about it. This article answers the most frequently asked questions about the union scheme / one-stop system of the One Stop Shop for e-commerce.
Is your question not listed? Schedule a free and non-binding appointment at the bottom, and we’ll see how we can assist you further.
When can I file VAT returns via the One-Stop-Shop?
If your annual turnover from distance sales within the European Union exceeds 10,000 euros, you are eligible for the OSS scheme. Registration is not mandatory, but it often makes VAT handling easier. You don’t need a VAT number in every country you ship to.*
Note: Do you store inventory in another EU country? Then you do need a VAT number there! This is especially important for Amazon sellers using FBA.
What should be reported in local VAT returns versus an OSS return?
If you have a One-Stop-Shop registration, all cross-border transactions must be reported in an OSS return. Local transactions must then be reported in local VAT returns. B2B transactions with reverse charge and exports outside the EU must also be reported in local VAT returns.
For example, if you ship B2C from your German inventory to Germany, this is reported in a local (German) VAT return. If you ship from the same inventory to France, report it via the One Stop Shop.
Note: If you choose to declare your cross-border VAT via the One Stop Shop, you can no longer declare cross-border sales via local VAT returns, even if you have a VAT number in the respective country. This is a common mistake: you must choose, you cannot do both.
Do I pay double for local VAT returns and One Stop Shop returns?
No. The OSS return only includes cross-border transactions. Local transactions must still be reported in local returns, so there is no overlap or double payment.
Can I reclaim VAT via the One-Stop-Shop?
No, this is not possible via the OSS, as the tax authorities pay the VAT on your behalf to other member states. As a Dutch entrepreneur, you must reclaim VAT via a special form from the Dutch Tax Authorities, unless you have a VAT number in the respective country. Then you must contact the tax authorities of that specific country.
Can an OSS return be filed retroactively?
No, it cannot. From the moment the threshold of 10,000 euros is exceeded, VAT must be paid in the countries where the goods are delivered. If you do not have an OSS registration there, you must apply for a VAT number there. This allows returns to be filed retroactively. You can then register for the OSS and cancel the VAT number from the start date of the OSS registration!
How does the destination principle work?
The destination principle of the One-Stop-Shop means that you must apply the VAT rate of the country where the goods are delivered. Are you shipping a package from the Netherlands to Germany? Then you should not apply Dutch VAT, but the German rate.
Let Staxxer handle your OSS registration and filings
Want to ensure everything regarding the OSS is well arranged? Then you can hand it over to us. Even if you need another European VAT number or need to file European VAT returns, we are here for you. We take care of your international VAT so you can focus on growing your business.
Schedule a non-binding consultation below: we will determine which solution best suits you and your business.