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On 1 July 2021, the so-called e-commerce package introduced a new method of settling sales within the European Union. VAT OSS stands for “one step shop” and, as the name suggests, effectively consists of one step. This settlement method concerns entrepreneurs selling goods online, including through marketplaces such as Amazon, to private individuals in EU countries. The business need not be registered in the EU, however – this concerns businesses from around the world. In other words, it extends VAT MOSS (for communications or electronic services) to online sales.
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Why?
VAT OSS simplifies settlement because a taxpayer can settle with one Polish tax office, which then settles with each country where the taxpayer sold goods. With e-commerce giants such as Amazon entering the European market, finding customers in other countries has never been easier.
Important!
The introduction of VAT OSS is not the only change to tax settlement in the EU. The threshold below which VAT need not be paid in the buyer's country has also fallen:
previously EUR 25,000 to EUR 100,000, depending on the member state;
now EUR 10,000 for the whole EU – PLN 42,000 in Poland.
Few know that, although VAT OSS appeared only halfway through the current year, the lower threshold also applies to 2020. So if your turnover last year exceeded EUR 10,000, you also have to register for OSS.
What are the benefits of VAT OSS registration?
→ certainty in settlement – you need not worry about exceeding the threshold;
→ simpler settlement – one return to the Polish tax office is enough; it handles further settlements;
→ regardless of the Amazon sales model (FBM or FBA), OSS helps avoid some formalities: under FBM all sales are settled through OSS; under FBA you only have to register for VAT in the countries where you store goods, settling through OSS in the others.
TaxCoach provides comprehensive support to e-commerce businesses. We offer scalable services tailored to sales volume and VAT OSS support.
Our tax advisers and experienced accountants will tailor the offer to your business and ensure smooth delivery of the service.
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