What is the One-Stop Shop (OSS)?
The One-Stop Shop (OSS) is a mechanism that simplifies VAT obligations for businesses or professionals who supply goods or provide services to final consumers (B2C) within the European Union. Thanks to this system, it is not necessary to register in each Member State where the activity takes place. Instead, it allows you to:
- Register electronically for VAT purposes in just one Member State.
- Submit a single VAT return for all sales made to customers located in other Member States.
- Make a single payment for the corresponding VAT.
This system is designed to make it easier for businesses operating in multiple EU countries to comply with tax obligations.
What are the different regimes under the One-Stop Shop?
There are three optional regimes within the One-Stop Shop:
- Union Scheme (EUOSS):
For businesses not established in the EU that provide services to final consumers in the EU. - Union Scheme (UOSS):
For businesses, whether established or not in the EU, that carry out distance sales of goods within the EU or provide B2C services within the EU. - Import Scheme (IOSS):
For distance sales of goods imported from third countries with a value of less than 150 euros.
The OSS does not apply to sales of goods through distance selling (for example, sales outside the EU) or certain services such as transportation.
Who can use the OSS?
The OSS regime is available to self-employed individuals and businesses established in the EU that make sales of goods or provide services to final consumers (B2C) in other EU countries. In the case of self-employed individuals, if total intra-community sales exceed the €10,000 annual threshold, the OSS must be used to declare and pay the corresponding VAT, rather than doing so in each destination country.
If the threshold is not exceeded, sales can be declared in the country of origin, applying the local VAT rules. If the threshold is exceeded and you are not registered in the OSS, you will need to register for VAT purposes in each of the EU countries where goods or services are sold to final consumers, and submit the corresponding returns in each of those countries.
How do I register for the OSS?
To register for the OSS, you must do so through the Spanish Tax Agency (Hacienda). The registration process is online, and once registered, you will be able to submit your VAT returns for cross-border sales within the EU through the Tax Agency's website.
How does the VAT declaration work in the OSS?
Self-employed individuals registered in the OSS must submit a quarterly VAT return, specifically using form 369, which will include sales made during that quarter in all EU countries. The return is submitted on the AEAT portal, and the corresponding VAT is paid through the same portal.
Do I have to pay VAT in each EU country where I make sales?
No, with the OSS, you do not have to pay VAT in each country individually. The system allows you to declare and pay VAT in Spain, and Hacienda will distribute it to the corresponding countries according to their local VAT rates. This simplifies the process by eliminating the need to register in each country where you sell.
What happens if I do not meet the requirements to use the OSS?
If you do not exceed the sales threshold (€10,000 annually), you are not required to use the OSS. In this case, you can continue declaring VAT according to the rules of your country of establishment, applying the local VAT rate to intra-community sales.
On the other hand, the OSS is an optional scheme, so even if you exceed the threshold, you can choose not to use it. However, in that case, you will need to register for VAT in each EU country where you make sales to final consumers and submit VAT returns in each of those countries. This can significantly increase the administrative burden.
Does the OSS cover all services and products?
No, the OSS only applies to certain goods and specific services. Services that are not included are transportation services, services provided to businesses, and some financial or insurance services. If you provide these services, you will need to follow the traditional VAT rules.
Additionally, keep in mind that the OSS only covers B2C operations, meaning sales and services to final consumers.
What are the deadlines for the declaration and payment of VAT through the OSS?
The VAT declaration and payment through the OSS are done on a quarterly basis. The deadlines are:
- First quarter (January-March): April 30
- Second quarter (April-June): July 31
- Third quarter (July-September): October 31
- Fourth quarter (October-December): January 31 of the following year
Can I correct my returns if I made a mistake?
Yes, in the event of an error, you can correct your OSS declarations through a supplementary self-assessment. The AEAT will allow you to modify the information submitted, as long as it is done within the established deadlines.
What are the limitations of the One-Stop Shop?
- It only applies to B2C operations (business to final consumer).
- Registration is required for each specific regime.
- It does not exempt from fulfilling other tax obligations in the country of origin or in other Member States.