Understanding the One-Stop Shop in Europe, after 2 years of its implementation

The One Stop Shop (OSS) is a system established by the European Union (EU) to simplify the declaration and payment of Value Added Tax (VAT) for businesses that engage in cross-border sales of goods and services within the EU.

The OSS allows businesses to file a single VAT return and make a single payment in their home country, instead of having to register and file VAT returns in each destination country.

Here’s a summary of how the One Stop Shop operates:

1. Registration for OSS: Businesses established in the EU can voluntarily register for the OSS in their home country. This involves submitting an application to the relevant tax authority and providing the necessary information about cross-border business activities.

2. VAT Declaration: Once registered for the OSS, the business can file a single VAT return for all its cross-border sales within the EU. This return includes details of the sales made in each destination country, along with the corresponding VAT.

3. VAT Payment: The business makes a single VAT payment through the OSS in their home country. The OSS then distributes the relevant amounts to each destination country based on the information provided in the return. This simplifies the payment process and eliminates the need to open and maintain bank accounts in different countries.

4. Registration for Mini One Stop Shop (MOSS) for digital services: For businesses selling digital services to end consumers in the EU, there is a similar scheme called the Mini One Stop Shop (MOSS). It allows businesses to declare and pay the VAT for such services through a single registration and return in their home country, instead of having to register in each destination country.

It’s important to note that the OSS and MOSS are voluntary options, and businesses can also choose to register and fulfill VAT obligations individually in each destination country if they prefer.

Each EU country has its own implementation and specific regulations for the OSS, so it’s recommended to consult with the relevant tax authority or a specialized tax advisor to obtain accurate and up-to-date information on requirements and procedures in each case.