What’s behind the new one stop shop scheme (OSS)?
Posted: Sat Feb 08, 2025 5:42 am
The new system provides a central collection point that distributes the reported taxes among the countries. This way, the registration process is significantly simplified and the distribution is more equitable. Every merchant can register and use this scheme if they so choose. Once registered, the scheme applies to all B2C sales and all countries supplied.
Benefits of the one stop shop scheme:
Central administration
Simplified registration
Optional
What do merchants need to know?
Merchants need to know the distinction What’s behind the new one stop shop scheme (OSS)? between warehousing and service provision when using the OSS scheme. For the time being, only sales to the end consumer are taken into account. But if you operate as a marketplace via Amazon, for example, or maintain your own warehouses abroad, you still have to file a tax return in the relevant country. That means that such a transfer of goods doesn’t fall under the one stop shop scheme.
You also need to supplement your own invoice with local tax rates. For example, in France, tax rates of 2.1%, 5.5% and 10% apply. There’s a risk of selling at a tax rate that’s too high due to false declaration and lowering your margin as a result. Or you set the tax rate too low and end up underpaying taxes. That’s why merchants should offer the goods sold in their online store at an appropriate end consumer price to ensure that the business remains financially lucrative.
Benefits of the one stop shop scheme:
Central administration
Simplified registration
Optional
What do merchants need to know?
Merchants need to know the distinction What’s behind the new one stop shop scheme (OSS)? between warehousing and service provision when using the OSS scheme. For the time being, only sales to the end consumer are taken into account. But if you operate as a marketplace via Amazon, for example, or maintain your own warehouses abroad, you still have to file a tax return in the relevant country. That means that such a transfer of goods doesn’t fall under the one stop shop scheme.
You also need to supplement your own invoice with local tax rates. For example, in France, tax rates of 2.1%, 5.5% and 10% apply. There’s a risk of selling at a tax rate that’s too high due to false declaration and lowering your margin as a result. Or you set the tax rate too low and end up underpaying taxes. That’s why merchants should offer the goods sold in their online store at an appropriate end consumer price to ensure that the business remains financially lucrative.