VAT & VAT OSS (One Stop Shop) Services

VAT & VAT OSS (One Stop Shop)

Value-added tax (VAT)

VAT is a consumption tax on digital and physical goods or services sold in the EU. It is assessed on the value added to goods and services as they move through the supply chain from production to the point of sale to the end consumer. For producers, distributors, sellers, and other intermediaries, VAT is a passthrough.

Along the supply chain, intermediary sellers and distributors (a) pay and reclaim Input VAT for goods and services purchased and (b) collect and pay Output VAT to the government on goods and services sold. This continues as goods and services move through the supply chain to the end consumer in the European Union who ultimately bears the VAT cost. The end customer is the one who pays the VAT.

All businesses selling goods and services to European Union residents must collect and pay VAT – even if these businesses are not established in the EU. For all sales where VAT is collected, the additional collection of customer data such as address is generally required (for localization purposes)

Most EU countries have a standard VAT rate and two or three other reduced tiers based on the type of goods and services. While the EU Commission has established a VAT minimum of 15%, current VAT rates across member states range between 17% and 27%. Switzerland (a non-EU state) has the lowest VAT rate in Europe – 7.7%

Companies that fail to file the correct VAT amounts face interest and penalties in every Member State of consumption in which it is obligated to collect and remit tax. This varies by the Member States in the European Union.

VAT OSS

Normally, you had to register an entity in each European country of sales to comply with VAT collection and reimbursement requirements. This used to be quite onerous, and the European Union collectively recognized that there could be an easier way, especially for smaller businesses with limited resources.

This need gave birth to the VAT One Stop Shop or VAT OSS, an online portal and process that simplifies collecting, declaring, and paying VAT across EU countries by eliminating the need to register in each country where a business sells its goods or services to local customers.

A single VAT OSS registration allows EU and non-EU businesses (including US-based companies) to make a single filing and payment for the total VAT due on goods and services sold from a home country to end customers across the European Union member states.

So, if you sell goods and services to customers in Germany, France, Holland, Belgium, Spain, Portugal, Italy, etc., rather than filing a separate VAT declaration with payment to each of those countries, a single registration for VAT OSS will enable you to file a single VAT declaration with total payments for all the above countries in one shot. There are conditions and quirks, and VAT OSS is still not that straightforward.

Europe Incorporations will advise you on all of your VAT strategies and absorb all of your VAT requirements, including VAT tracking, filings/declarations, payments, and reimbursements throughout the European Union.

Basic

$199

VAT Registration

30-Day Service Inclusive

$99/Month Ongoing

24/7 Support /48-hour Query Response

Basic PLUS

$359

Single-country VAT Declaration

30-Day Service Inclusive

Track Sales, File, and Declare Your VAT from Your Invoices

$199/Month Ongoing – subject to transaction amounts

24/7 Support /48-hour Query Response

Enterprise

$499

Multi-country VAT OSS Declaration

30-Day Service Inclusive

Track Sales, File, and Declare Your VAT from Your Invoices for All European Union Countries

$259/Month Ongoing – subject to transaction amounts

24/7 Support /48-hour Query Response

VAT & VAT OSS (One Stop Shop) Services