- The VAT One-Stop Shop (OSS), effective since July 1, 2021, is an optional VAT scheme that simplifies VAT obligations for eCommerce businesses selling across EU borders. It allows sellers to register in one Member State and declare all cross-border sales through a single quarterly return, replacing the previous Mini One-Stop Shop (MOSS) system.
- The OSS consists of three schemes: the Union OSS for EU-established businesses and non-EU businesses with a fixed establishment in the EU, the Non-Union OSS for non-EU businesses without a fixed establishment, and the Import One-Stop Shop (IOSS). The Union OSS covers B2C supplies of goods and services, while the Non-Union OSS is limited to B2C services.
- Key benefits of the VAT OSS include simplified VAT registration and reporting, centralized VAT payment, and reduced compliance costs. However, businesses must adhere to specific compliance considerations, such as monitoring VAT thresholds, ensuring correct product classification, and timely submissions, while maintaining detailed transaction records for ten years.
Source VATAi
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