VAT OSS, or One Stop Shop VAT, is a solution that revolutionizes the way VAT is settled in the e-commerce industry. The new system introduced by the EU significantly simplifies the tax refund process. It eliminates the need for registration in every country where a company sells. Thanks to VAT OSS, entrepreneurs can focus on developing their businesses instead of complex administrative procedures. In this article, we will explain how VAT OSS works. Let’s find out about its main advantages, and how to register for this system.
What is VAT OSS?
VAT OSS is a system that simplifies VAT settlement for e-commerce companies. It was introduced as part of the e-commerce package by the EU. It allows companies to register in one member country and settle VAT on sales in other EU countries through one VAT declaration.
Why is it Worth Using VAT OSS?
Using VAT OSS offers numerous benefits for entrepreneurs. First of all, the system eliminates the need for registration in every EU country where the company sells. Entrepreneurs can register in the VAT OSS system in their home country. This simplifies the administrative process and allows them to focus on business development.
| Benefit | Description |
| Simplification of procedures | One registration and one declaration for all EU sales. This eliminates the need for multiple registrations. |
| Reduction of administrative costs | Lowering costs associated with registration and VAT settlement in several countries. |
| Increased competitiveness | Ability to focus on business growth instead of complicated tax procedures. |
| Better control over VAT settlements | Centralized VAT settlement allows for better tax management. |
| Simplified expansion into EU markets | Simpler tax procedures make it easier to expand into new EU markets |
| Faster and more efficient management | Electronic system for VAT declarations and payments improves administrative processes. |
| Compliance with EU regulations | The system ensures compliance with EU VAT regulations. |
| Transparency and clarity | A uniform VAT declaration system increases the transparency of tax settlements. |
| Support for small and medium-sized enterprises | Simplified procedures are particularly beneficial for smaller companies. |
How Does VAT OSS Work?
VAT OSS works based on several key principles:
- One registration. An entrepreneur registers for the VAT OSS system in one EU member country.
- One declaration. The entrepreneur submits a quarterly VAT declaration covering all intra-EU sales.
- VAT payments. VAT is paid in the country of registration. Then, the tax administration transfers it to the appropriate member countries.
How to Register for VAT OSS?
Registering in the VAT OSS system is relatively simple. An entrepreneur must apply for registration through the tax portal of his member country. Once registration is approved, the entrepreneur receives a unique VAT OSS number. It will be used for settling intra-EU sales.
VAT OSS Registration Process
| Step | Description |
| Preparation of documents | Collect the necessary information and documents required for registration. |
| 2. Registration application | Submit the registration application through the tax portal. |
| 3. Approval | Receive approval and a VAT OSS number from the tax administration. |
| 4. Declaration | Submit quarterly VAT declarations through the VAT OSS system. |
| 5. VAT payment | Make VAT payments to the tax administration of the country of registration. |
When is it Possible to Use VAT OSS?
The VAT OSS system has been available to entrepreneurs since 1 July 2021. This is a particularly advantageous solution for companies conducting large-scale sales in various EU countries. For example for sellers on platforms like Amazon, eBay, or those who have their online stores. With the introduction of the VAT OSS procedure, the thresholds for distance sales to EU countries have changed. Instead of separate thresholds in individual countries, a common limit of 10 000 euro has been introduced for the entire EU. For Polish sellers, this limit amounts to 42 000 PLN. The sales threshold includes the total value of goods supplied to other EU countries.
Examples of VAT OSS Application
- Amazon. An entrepreneur selling products on Amazon can register for VAT OSS. Then he submits one VAT declaration for all sales in the EU.
- eBay. A seller using eBay can simplify his tax obligations by registering for VAT OSS. This way he is avoiding registration in multiple countries.
Summary
VAT OSS is an innovative solution introduced by the EU. It simplifies the VAT settlement process for entrepreneurs operating in e-commerce. This system allows for registration in one member country and the submission of one VAT declaration for all intra-EU sales. Thanks to VAT OSS, entrepreneurs can reduce administrative costs. It also increases their competitiveness. Such a possibility allows to focus on business development instead of complicated tax procedures.
Enjoy the benefits of the VAT OSS system today!
Register your company in the VAT OSS system and simplify your VAT settlement process. Contact our experts to learn more and get help with VAT OSS registration.
FAQ
What is VAT OSS?
It is a system that allows for the submission of one VAT declaration for sales in different EU countries.
Why is VAT OSS beneficial for e-commerce?
VAT OSS simplifies the registration and VAT settlement process. It eliminates the need for registration in every EU country where the company sells goods.
How to register for VAT OSS?
Registration is done through the tax portal of the member country where the entrepreneur is based. Once registration is approved, the entrepreneur receives a unique VAT OSS number.
When is VAT OSS available?
The VAT OSS system has been available to entrepreneurs since 1 July 2021.
What are the benefits of using VAT OSS?
Benefits include simplified administrative procedures, cost reduction, and increased competitiveness of the enterprise.
Is VAT OSS mandatory?
VAT OSS is optional but can significantly facilitate VAT settlements if you conduct intra-EU sales.
What are the requirements for submitting VAT declarations in the OSS system?
VAT declarations in the OSS system are submitted quarterly, covering all intra-EU sales.
Does registration in VAT OSS eliminate the obligation to submit declarations in other countries?
Yes. The entrepreneur submits one VAT OSS declaration in his country of registration. It covers sales in all EU countries.
Which companies can benefit from VAT OSS?
Companies selling goods and services to consumers in different EU countries. This includes sellers on platforms like Amazon and eBay.
Can I register for VAT OSS if I am already registered as a VAT taxpayer in other countries?
Yes. Registration in VAT OSS is possible even if the company is already registered as a VAT payer in other EU countries.
