According to the latest findings of the European Commission, VAT-OSS, i.e. Value Added Tax – One-Stop-Shop, will become effective on 01/07/2021. Its aim is to help entrepreneurs smoothly adapt to the rules of the uniform market of the European Union. Read our today’s article to learn more about the VAT OSS scheme.
What you should know about VAT OSS scheme
Therefore, today, we are going to talk about the regulations of VAT OSS. They are going to concern all entrepreneurs who carry out on-line sales and exceed an annual turnover of EUR 10,000. We call for special attention to the sellers present on the German market. It’s there where the previous turnover threshold was EUR 100,000. The introduction of the VAT-OSS system will be a great facilitator for all those who sell products directly from their own warehouses. I.e., in the FBM model. The entrepreneurs will not be obliged to register for VAT in each EU country to which they sell their goods.
When it comes to FBA, the situation is slightly different. That is because the VAT-OSS system has a certain trait. Namely, it does not take the fact that goods can be stored in different EU countries into account. As a consequence, it obliges the seller to register and settle VAT (intra-community delivery and acquisition of goods) in these countries.
Have you learned about VAT OSS Scheme? If you have found our article helpful, we strongly recommend you to check our site out for more! On our blog, you’ll find posts and tips explaining and facilitating your actions as an Amazon seller.
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