VAT OSS - what do you need to know?
On July 1, 2021, as part of the so-called In the e-commerce package, there is a new way of settling sales in the European Union. VAT OSS - is an abbreviation of "one step shop" and, as the name suggests - it actually consists of one step. This method of settlement applies to entrepreneurs who sell their goods online, via sales platforms such as Amazon, to natural persons from countries located in the EU. This does not mean, however, that the activity must be registered in the European Union - this applies to businesses from all over the world. In other words, it is an extension of the MOSS VAT (for communication or electronic services) to online sales.
Why?
VAT OSS simplifies the settlement process, because the taxpayer can settle accounts with one Polish tax office, which then settles accounts with each of the countries where the taxpayer sold his goods. With e-commerce giants such as Amazon entering the European market, attracting consumers from other countries has never been so easy.
Important information!
The appearance of VAT OSS is not the only change in tax settlement in the EU! The threshold for which VAT is not required in the buyer's country has also lowered
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from 25 to 100 thousand euro depending on the member state (previously)
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now up to EUR 10,000 for the entire EU - PLN 42,000 in Poland
Few people know that despite the fact that the VAT OSS appeared only in the middle of this year, the reduction of the limit also applies to 2020! So if last year your turnover was more than 10,000 euros, you are also required to register with the OSS.
What are the benefits of registering for VAT OSS?
-> billing security - you don't have to worry about exceeding the threshold
-> simplification of settlements - one declaration is enough to the Polish office which will take care of further settlements
-> regardless of the sales model on Amazon (FBM or FBA), OSS allows you to avoid some formalities - in the case of FBM, all sales are settled by OSS, and in FBA you need to register for VAT only in countries where we store the goods - in the rest, we can settle accounts by OSS
In TaxCoach, we provide comprehensive services for e-commerce companies. We provide a scalable offer (adjusted to the size of sales) and support for VAT OSS.
Our tax advisers and experienced accountants will ensure that the offer is tailored to your business and that the service will be performed without any problems.
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