- Overview of OSS and IOSS: The One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) are VAT schemes introduced by the EU to simplify VAT compliance for businesses engaged in cross-border sales. OSS allows EU businesses to report all B2C sales and services in one return, while IOSS specifically applies to distance sales of low-value imported goods (valued at €150 or less) from non-EU countries.
- Key Differences: OSS covers both intra-Community distance sales and certain B2C services, requiring quarterly returns. In contrast, IOSS is limited to distance sales of low-value imported goods and mandates monthly declarations. Additionally, non-EU businesses using IOSS must appoint an intermediary for VAT purposes, while OSS allows non-EU suppliers to choose their registration country under specific conditions.
- Choosing the Right Scheme: Businesses should select OSS or IOSS based on the nature of their transactions. OSS is suitable for intra-Community sales and B2C services, while IOSS is appropriate for low-value imported goods. Utilizing these schemes simplifies VAT compliance, reduces administrative burdens, and minimizes tax compliance risks, facilitating faster market expansion within the EU.
Source Marosa
