Blog, News & Best Practices
Blog, News & Best Practices
VAT one-stop shop
For several years, e-commerce has been growing steadily. Consumption patterns have evolved, leading to new French regulations since 2021, particularly with the One-Stop Shop (OSS) for VAT.
What is the VAT One-Stop Shop? How does it work, and what are its benefits? Is your company affected? Fiscalead takes a closer look.
What is the VAT One-Stop Shop?
Since July 1, 2021, new VAT rules apply to distance sales of goods within the European Union (EU) or from third countries to customers who are not subject to VAT. These measures aim to simplify tax management for businesses and standardize reporting obligations.
The VAT One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) is an optional European system that allows businesses to:
- Declare and pay VAT through a single Member State via the OSS, instead of registering in each Member State of consumption.
- Simplify tax management for service provisions and intra-community or third-country distance sales for shipments under €150.
Why this change?
Before 2021, e-commerce businesses had to monitor country-specific distance selling thresholds. When a country’s threshold was exceeded, companies had to register locally and comply with that Member State’s tax regulations. This involved complex and time-consuming administrative processes.
With the One-Stop Shop (OSS):
- A single €10,000 threshold for distance sales applies across all EU Member States.
- Businesses can centralize VAT declarations and payments through a single Member State.
Mini One-Stop Shop (MOSS): A system for digital services
The Mini One-Stop Shop (MOSS), in place since 2015, is dedicated to digital services (e.g., telecommunications, streaming, app downloads, online education). It allows businesses to declare and pay VAT through a single platform.
Good to know
- MOSS vs OSS: The Mini One-Stop Shop (MOSS) applies only to digital services, whereas the OSS-IOSS system applies to sales of goods and services.
- Why register? To avoid multiple VAT registrations within the EU and delegate the redistribution of collected VAT to tax authorities through the One-Stop Shop.
IOSS or OSS?
What is OSS?
The One-Stop Shop (OSS) greatly simplifies VAT management and compliance for businesses within the European Union. This system allows companies to centralize VAT declarations for intra-EU distance sales of goods or services to private individuals. Instead of registering for VAT in each country where they sell, businesses can use a single Member State to submit a quarterly OSS declaration.
Key features:
- Single threshold: Once annual revenue exceeds €10,000 in the EU, businesses must apply the VAT rate of the destination country.
- Scope: Applies to businesses selling goods already located within the EU to private individuals in other EU Member States.
- Local VAT rates: Businesses must charge the VAT rate of the consumer’s country.
What is IOSS?
The Import One-Stop Shop (IOSS) is specifically designed for distance sales of goods imported from a third country into the EU with a value not exceeding €150. For higher-value goods, VAT must be declared at customs by the transport company. This system simplifies VAT procedures by allowing e-commerce sellers to collect VAT at the point of purchase, preventing unexpected charges for consumers at delivery.
Key features:
- Imports: Applies to goods imported into the EU from a third country with a value up to €150.
- Simplified invoicing: VAT is included at checkout, and import procedures are streamlined.
- Monthly declaration: Businesses must submit a single VAT declaration in their Member State of identification.
How to choose between OSS and IOSS?
The decision depends on where the goods are located at the time of sale:
- OSS: When the goods are already within the EU at the time of sale.
- IOSS: When the goods are imported into the EU from a third country and have a value of €150 or less.
Note: These systems are optional, but they greatly simplify VAT management. Businesses that do not use them may face more complex and costly administrative procedures.
Get expert advice from Fiscalead
Comparison table: OSS vs. IOSS
Submitting a Request via the One-Stop Shop
The process is based on a dynamic form that adapts to your responses. You will be able to:
✔ Enter the required information.
✔ Upload the necessary supporting documents.
Information Required
- Legal status and company identity.
- Tax system.
- Business locations and internal organization.
- Associated supporting documents.
At each step, a summary allows you to review and validate the data before submitting your application.
Available Procedures
✅ Business creation (registration or start of activity).
✅ Updating company details (e.g., activity change, address modification).
✅ Business cessation (permanent or temporary).
✅ Filing annual accounts or other documents related to the commercial register.
What Are Its Advantages?
1. Administrative Simplification
✅ A single platform for all formalities: business creation, modification, or cessation.
✅ Easier tracking with dashboards to monitor application progress.
✅ Direct submission and management of supporting documents via the portal.
2. Centralization and Time-Saving
✅ VAT formalities for cross-border sales within the EU can be declared in one place.
✅ No need to register for VAT in every Member State where sales occur.
3. Simplified VAT Compliance
✅ A single VAT declaration (quarterly for OSS, monthly for IOSS) for the entire EU.
✅ VAT payment is centralized in one Member State, which redistributes the amounts to the relevant EU tax authorities.
4. Enhanced Customer Experience (IOSS)
✅ VAT is charged at checkout, avoiding unexpected fees upon delivery.
✅ Faster import procedures and quicker delivery for goods.
5. Elimination of National VAT Thresholds
✅ All cross-border sales exceeding €10,000 are managed centrally, simplifying VAT administration across the EU.
6. Cost Savings and Flexibility
✅ Fewer costly administrative procedures, such as multiple VAT registrations in different countries.
✅ Businesses can opt to continue local VAT declarations if they choose not to use the One-Stop Shop system.
Fiscalead Manages Your VAT in the EU
Fiscalead, a specialist in VAT management across Europe, makes your life easier by handling all your tax obligations, including through the One-Stop Shop (OSS/IOSS) system.
✅ Comprehensive Support: From VAT declaration to administrative management, we centralize your processes to ensure compliance in every EU Member State.
✅ Mandatory Fiscal Representation: If your business is based outside the EU, Fiscalead acts as your fiscal representative within the Union, providing a secure and reliable solution for your tax obligations.
✅ Expertise & Personalized Advice: Our experienced teams support you throughout the entire process, offering tailored solutions to meet your specific needs.
FAQ – VAT One-Stop Shop
Q: Who is affected?
All businesses based in France or conducting activities in France, regardless of their industry or legal structure, are subject to the VAT One-Stop Shop (OSS/IOSS).
Q: What VAT rate should be applied?
The local VAT rate of the destination country must be applied for each sale.
For example, sales in Germany must be invoiced with the German VAT rate of 19%.
