The OSS simplifies VAT registration and filing, enabling businesses to account for VAT on sales in multiple EU countries with a single digital VAT return.
Benefits:
- Eliminates the need for VAT registration in countries that you sell goods but you do not store goods in
- One OSS return that covers all of your EU VAT cross-border obligation for B2C sales
- Money due to other EU countries will be sent by the home tax office
For example, companies storing goods in their home country and selling into 5-6 other EU countries without storage there, will now only have to submit one home VAT return and one OSS VAT return per period. A payment for each return will be required.
Criteria to apply for OSS: annual sale of goods or digital services higher than €10,000
If you sell “low value goods” which cost less than €150 outside the EU then you need to register for IOSS as well.