One Stop Shop (OSS)

The union OSS is the electronic portal businesses can use to comply with their VAT obligations on e-commerce sales within the EU to consumers. The one stop shop system has been in force since 1st of July 2021 and this new system substitutes the previous one – Mini One Stop Shop (MOSS), which was came into force on 1 January 2015 and allows taxable persons supplying telecommunication services, television and radio broadcasting services and electronically supplied services to non-taxable persons in Member States in which they do not have an establishment to account for the VAT due on those supplies via a web-portal in the Member State in which they are identified. NBS will guide you during whole process of registration on the OSS system and will be responsible for all reporting inside the system.

What is the Union OSS for?

The Union OSS is an electronic portal which simplifies up to 95% of VAT obligations for online sellers and electronic interfaces throughout the EU, as it allows them to:

Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for business-to-consumer supplies of services;
Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return;
Work with the tax administration of their own Member State and in their own language, even if their sales are cross-border.

Who can use the Union OSS and for which supplies?

1. A taxable person established in the EU (who is not a deemed supplier) can use the Union OSS for:
Supplies of B2C (business to client services) services taking place in a Member State in which he is not established;
Distance sales of goods within the EU.
2. A taxable person not established in the EU for:
Distance sales of goods within the EU.
3. An electronic interface (established in the EU or outside the EU) facilitating supplies of goods (deemed supplier) for:
Distance sales of goods within the EU;
Certain domestic supplies of goods.
If you are online seller or an electronic interface, see what has been change on 1 July 2021

Online Sellers	Electronic Interfaces
Formerly, EU businesses that are selling goods within the EU above a certain threshold (EUR 35 000 or 100 000, depending on the Member State) to buyers located in another EU Member State had to register and pay VAT in the buyers’ Member State. Since the 1 July 2021 this rule is abolished and replaced with a new EU-wide threshold of EUR 10 000. Below this new threshold you can continue to apply the domestic rules for VAT (including the SME exemption scheme) on your cross-border sales. If your sales are above this threshold, you are liable for VAT in the Member State where your buyers are located. Above this threshold, businesses can easily register in a new OSS – where they can easily declare and pay the VAT.	Since1 July 2021, if an electronic interface (marketplace, platform, etc.) facilitates distance sales of goods by a non-EU established seller to a buyer in the EU, the electronic interface is considered to be the seller and is liable for the payment of VAT. To declare and pay this VAT, the electronic interface can easily register in a special electronic system called the One-Stop Shop (OSS).

Online Sellers

Electronic Interfaces

Formerly, EU businesses that are selling goods within the EU above a certain threshold (EUR 35 000 or 100 000, depending on the Member State) to buyers located in another EU Member State had to register and pay VAT in the buyers’ Member State.

Since the 1 July 2021 this rule is abolished and replaced with a new EU-wide threshold of EUR 10 000. Below this new threshold you can continue to apply the domestic rules for VAT (including the SME exemption scheme) on your cross-border sales. If your sales are above this threshold, you are liable for VAT in the Member State where your buyers are located. Above this threshold, businesses can easily register in a new OSS – where they can easily declare and pay the VAT.

Since1 July 2021, if an electronic interface (marketplace, platform, etc.) facilitates distance sales of goods by a non-EU established seller to a buyer in the EU, the electronic interface is considered to be the seller and is liable for the payment of VAT. To declare and pay this VAT, the electronic interface can easily register in a special electronic system called the One-Stop Shop (OSS).

When is an Electronic Interface liable for the VAT on sales of the seller?

Online Sellers	Electronic Interfaces
—	An electronic interface is liable for VAT when it facilitates the following supplies of goods, made by an actual seller not established in the EU, to buyers in the EU: intra-EU distance sales of goods; domestic supplies of goods. The electronic interface is considered to have facilitated the sale(s) of goods when it allows a buyer and a seller to enter into contact via that electronic interface, where the end result is the sale of goods to that buyer.

Online Sellers

Electronic Interfaces

—

An electronic interface is liable for VAT when it facilitates the following supplies of goods, made by an actual seller not established in the EU, to buyers in the EU:

intra-EU distance sales of goods;
domestic supplies of goods.

The electronic interface is considered to have facilitated the sale(s) of goods when it allows a buyer and a seller to enter into contact via that electronic interface, where the end result is the sale of goods to that buyer.

How does the OSS work?

Online Sellers	Electronic Interfaces
Businesses need to apply the VAT rate of the Member State where the goods are dispatched to or where the services are supplied. Information on the VAT rates in the EU is available on both the European Commission website and on the websites of national tax administrations

*All information about it has been implement and checked with the European Commission website and on the websites of national tax administrations