VAT Return Filing

Implemented in July 2021, the OSS (meaning One-Stop Shop) is a universal online B2C (or business-to-consumer) reporting and payment platform meant to simplify the process of VAT return filing by allowing online retailers to report all of their sales in different EU countries with a single VAT report. To make use of the system, an e-commerce business needs to register with the VAT OSS in any EU country. From that point on, the OSS will forward the VAT that the company reports to the tax authorities in each EU member state that the company sells goods and services in. The platform is optional, as a company may still handle their VAT separately in each individual EU member state that they do business in. The platform also doesn’t cover domestic VAT returns, which need to be filed on their own.

The OSS system includes three distinct types of VAT return schemes: Union, Non-Union, and Import. These are tailored to cover different seller locations and transaction types that they are involved with. Depending on their business, some online retailers may be required to file more than one kind of OSS VAT return. The Union scheme applies to businesses based in the EU that are selling goods or services in multiple EU member states. The Non-Union scheme, in turn, is meant for sellers outside of the EU that offer goods or services on EU territory. Lastly, the Import scheme applies to companies selling imported goods with a shipping value no greater than €150 on the soil of EU member states.

The frequency at which you are required to file and pay your VAT returns will depend on the OSS scheme(s) that your company is registered for. Namely, VAT for Union and Non-Union OSS schemes needs to be filed and paid quarterly, while the Import scheme requires monthly handling. The VAT report for each period is to be fully resolved by the last day of the following month. Therefore, VAT returns for Union and Non-Union OSS are due by:

• April 30th for the first quarter
• July 31st for the second quarter
• October 31st for the third quarter
• January 31st of next year, for the fourth quarter

As for the Import scheme, January’s returns need to be submitted by February 28th, February’s returns are to be filed and paid out by March 31st, et cetera.

Each EU member state has its own set of penalties for different missteps. In general, however, the OSS office where you are registered for VAT will notify you when 10 days pass after your missed due date. Next, individual countries that you owe VAT to will send penalty assessments, more reminders, and possibly other documentation. Subsequently, you will need to pay what you owe to each of them, VAT and penalties included.

Yes. All sales records filed with the OSS platform will have to be kept for 10 years after the initial submission.

Not at all. The entirety of the OSS system is optional and meant to simplify the VAT filing process. Any e-commerce business can opt to calculate, file, and pay their VAT separately to the individual tax authorities in all the different EU countries that they sell goods or services to.

Maybe, but only if your company is not based in the EU, and you intend to apply for the Import OSS scheme. In that case, you will likely need to hire a professional intermediary. These experts, often called VAT agents or fiscal representatives, will not only register you for an OSS, but they will also handle the return filing and payment portions of the VAT compliance process. Incidentally, those services fall within VATPro’s offer, as well.