One Stop Shop (OSS)
The One-Stop Shop is an electronic system with which it will be possible to declare your VAT for services rendered to various EU-member states as of July 2021. For example, a Dutch web shop delivers items to customers in three different EU-countries. In this case, non-Dutch VAT payments over these sales can be done with one centralized electronic declaration. With the OSS, it is not (longer) necessary to declare your taxes in each EU-country where you do business.
Who is the OSS for?
In addition to suppliers of digital services that previously made use of the MOSS system, the OSS is accessible for entrepreneurs that are established in the EU and who are rendering services or supplying goods to other EU-member states. Pay attention: the OSS can only be used for the VAT-payment to customers that do not pay VAT themselves. Usually this concerns private individuals, however there are also companies that are exempt from paying VAT. Generally, entrepreneurs in the e-commerce make use of the OSS.
When do you pay VAT in another EU-country?
VAT-payment between EU-member states is mandatory for sales above the threshold amount of €10.000. Below this amount, you will have to pay VAT in The Netherlands.
Pay Attention: This new threshold amount is lower than the old threshold amounts. It can, therefore, be the case that before you did not have to pay VAT in the EU-country where you delivered and that you will have to do so now. Additionally, as of July 1st, 2021 the exemption of VAT on import up to €22,- ends. From that day onward, you will have to pay VAT for goods below this amount.
How do you make use of the OSS?
Using the OSS is not mandatory. It is possible (to continue) to declare your VAT for each separate EU-country
For centralized organization of your VAT payments in the OSS, applying for the Union Regulation (Unieregeling) in the One-Stop Shop is necessary. The Union Regulation is applicable to companies that are established in the EU and deliver services or goods to other EU-countries.
Making use of the non-Union Regulation in the OSS is possible for companies that render services to EU-countries, but are not established in the EU.
In addition to the Union Regulation and Non-Union Regulation, the OSS consist of the import scheme: for VAT declarations of goods with an origin outside the EU that are valued at €150,- or less can be entitled to the import scheme included in the OSS
To make use of the abovementioned regulations in the One-Stop Shop system, you can log in to Mijn Belastingdienst Zakelijk (Business Taxes). Here you can register for the One-Stop Shop system as of April 1st, 2021.
Further reading
The Chamber of Commerce supplies entrepreneurs extensively with information about VAT and international business. In this article, we listed what you need to know about VAT with sales of goods and services abroad.