EU Businesses: register for the Union One-Stop Shop by July 1st
EU businesses that sell to other EU member states need to register for the Union One-Stop-Shop (Union OSS) by Thursday, the 1st of July if they exceed the new VAT threshold.
What is Union OSS?
The Union One-Stop Shop is an electronic portal which simplifies the VAT obligations for online sellers and electronic interfaces across the European Union for all intra-EU distance sales of goods and for business-to-consumer supplies of services. From the 1st of July 2021, all VAT due within the European Union can be declared in a single electronic quarterly return.
What are the benefits of Union OSS?
With the Union One-Stop Shop, EU e-commerce businesses can:
Register for VAT online in one single EU member state;
Declare all VAT that’s due within the European Union in one single electronic VAT OSS return;
Cover all their due EU VAT in one single VAT payment;
Work with the local tax administration of one Member State in their preferred language.
What’s the new EU VAT threshold?
Currently, EU businesses whose sales to other EU member states exceed the EU distance selling threshold (€35,000 or €100 000, depending on the member state) need to register and pay VAT in the buyers’ member state.
From the 1st of July 2021, there will be one standardised VAT threshold for sales within the European Union. EU retailers that sell more than €10,000 worth of goods to other EU member states now need to register and declare their sales through the Union One-Stop Shop (OSS).
Who needs to register?
EU e-commerce businesses, as well as certain online marketplaces, that sell more than €10,000 worth of goods to consumers in other EU member states.
When is the registration deadline?
The Union One-Stop Shop is part of the EU’s new VAT e-commerce package which takes effect on Thursday, the 1st of July 2021. To avoid costs and complications further down the line, EU businesses who exceed the VAT threshold on intra-EU sales should register for the Union One-Stop Shop now.
How should I register for the Union One-Stop Shop?
Each EU Member State will have its own online Union OSS portal where you can register and record your sales made on or after 1 July 2021. Enquire with the tax administration office of your EU member state to find out more.