Knowledge

VAT OSS – VAT changes in e-commerce

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.

The regulations will concern all entrepreneurs who carry out on-line sales and exceed an annual turnover of EUR 10,000. We call for special attention to sellers present on the German market, 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, because the VAT-OSS system does not take the fact that goods can stored in different EU countries into account, and as a consequence it obliges the seller to register and settle VAT (intra-community delivery and acquisition of goods) in these countries.

Damian
CEO

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