E-commerce Sellers no longer need to register in multiple EU countries for VAT.
On 1st July 2021, all 27 European Countries implemented a new VAT system for e-commerce sellers call One-Stop Shop (OSS). The new system is said to simplify 95% of VAT obligations for sellers of goods and services to consumers throughout the European Union.
The new OSS system allows sellers to declare and pay VAT in a single electronic quarterly return for all their EU sales. OSS applies to all goods and services supplied to EU consumers and distance sales of good within the EU. There is a selling threshold of 10,000 EUR and it applies to all sales in all EU countries combined.
OSS eliminates the need for VAT registration in EU countries where you sell, but you will need to be VAT registered in EU countries where you store your goods.
For example, if you sell on Amazon throughout the EU and only store your goods in their German FBA centre, you would need to register for VAT in Germany and register for OSS to cover all other sales within all other EU countries. If you store your goods in five of Amazon FBA centres in five separate EU countries, you would need to register for VAT in each of those five EU countries and for OSS to cover all other sales in the remainder of the other EU countries.
OSS simply eliminates the need for VAT registration in EU countries where you sell, but do not store your products. This means reduced paperwork, less VAT filings and ultimately less cost for you the EU e-commerce seller.
If you have questions about the EU’s One-Stop Shop VAT programme and how it applies to your EU business sales, My VAT Direct can help. Please feel free to contact our VAT compliance team on 44 (0) 208-004-1160 in the UK, ++1 (714) 782-7000 in the USA or simply email us at query@MyVATdirect.com and we’ll do our best to help.
About My VAT Direct Ltd
My VAT Direct is a bespoke VAT registration, fiscal representation, calculation and filing service specifically designed to assist Amazon Sellers and e-commerce merchants who desire the benefits of cross-market selling without the worry of tax compliance in foreign markets.
My VAT Direct is comprised of knowledgeable and experienced tax experts, who for 10+ years have helped e-commerce sellers enjoy the selling opportunities a mass market can provide.
About SMBE Direct Ltd
My VAT Direct is a subsidiary of SMBE Direct, a world reaching B2B and B2C business services conglomerate, giving rise to exceptionally talented and well-experienced professionals organised into business units, that provide direct services to SMEs and enterprise level businesses, whereby increasing their brand awareness and sales.