Single window for intra-EU VAT: a proven simplification tool
Do you know the meaning of the acronym OSS-EU? OSS corresponds toOne-Stop Shopand translates into French by single window for VAT (Tax on Value Added). Several one-stop shops coexist according to the situation of the companies, we propose today to detail the one used for European companies.
The EU One-Stop Shop for VAT is a measure put in place by the European Union to simplify the VAT reporting and payment process for businesses selling goods and services to individuals in several EU Member States.
It consists of an online portal on which the company registers in the country where it is established by drawing up a list of countries with which sales flows (especially distance sales – VAD) are foreseen. Thus, all transactions related to VAT to individuals will be carried out on this portal at once.
For example, when a French trader sells and delivers goods to an individual located in another European country, since July 2021, he is obliged to collect the VAT of the State of destination and to make the relevant tax declarations.
Previously, for these transactions, companies had to register for VAT in each country. The system was long, complex and discouraging.
Companies can now opt for centralisation of their tax obligations through a one-stop shop called OSS-EU. For companies with a turnover of more than EUR 10 000 (including all sales to all their European private customers), the Single Window becomes an obligation.
How does this work? The company registers on the one-stop shop of the country in which it owns its establishment (in France, in the professional area of the site)taxes.) and lists the countries of its particular customers. All reporting formalities and VAT payments (at the rate of each country) go through the portal.
Attention, the one-stop shop has been deployed for other streams too, you have to distinguish the three versions and choose the right one:
- The Union scheme (OSS-EU): for enterprises with at least one permanent establishment in the EU.
- The non-Union regime (non-EU OSS)for non-European companies selling services to consumers in the EU.
- The import regime IOSS (Import One-Stop Shop): for distance sales of goods imported from third countries and delivered directly to EU citizens. IOSS is used by businesses, both in the EU and outside the EU.
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