Union OSS and Non-Union OSS: EU One-Stop Shop (OSS) VAT Compliance

Tax-efficient Wealth Planning

What is OSS?

A lot of businesses are encountering problems paying VAT when selling into the EU. VAT rates can vary from country to country, making VAT compliance difficult for those selling into more than one EU country.

The Union One-Stop Shop (OSS) is designed to address the issues faced by companies when dealing with different VAT jurisdictions within the EU. The OSS is an extension of Mini One-Stop Shop (MOSS) and is divided into Union OSS and Non-Union OSS.

Once a company has collected VAT from its customers, it then needs to remit the money collected to its local tax authorities. The VAT collected will then be distributed to the relevant EU countries with which trade took place.

Union OSS

The Union-OSS is meant for EU-based sellers, for goods shipped within the EU, and services to customers in the EU. It is also available to sellers based outside the EU/non-EU, but only for goods shipped within the EU and not for services. Non-EU based companies providing services to the EU need to use the non-Union OSS.

While EU Businesses need to register in their home country for OSS, non-EU businesses may choose the country they file their Union OSS. However, this must be in the country where they hold stock.

Non-Union OSS

This is for non-EU businesses that are providing services into the EU. For non-Union OSS, the non-EU business has the ability to choose the country of preference for non-Union OSS registration.

What is the difference between Union and Non-Union OSS?

The primary difference is that Union OSS is for EU-established businesses providing services or making intra-EU distance sales, while Non-Union OSS is exclusively for non-EU businesses providing digital services to EU consumers.

Can I use OSS for B2B transactions?

No, OSS is designed specifically for B2C transactions. B2B transactions generally fall under different VAT rules where the customer often accounts for the VAT through reverse charge.

How often do I need to submit OSS returns?

OSS returns must be submitted quarterly (by the end of the month following each quarter), regardless of whether you use Union or Non-Union OSS.

What happens if I miss an OSS filing deadline?

Missing deadlines can result in penalties, interest charges, and potentially being excluded from the OSS scheme, requiring you to register for VAT in each EU country separately.

Can I correct errors in previous OSS returns?

Yes, corrections to previous OSS returns can be made in subsequent returns within three years of the date the original return was due.

If you are interested in registering for OSS, or would like to learn more, you can contact us using the form below: