SimpleVAT offers OSS registration, software-aided OSS data collection, automated invoicing, and full-service package for OSS including filing services and professional tax consultancy.
Any online business selling cross-border in Europe (excluding dropshipping from outside the EU, or importing goods as a non-EU seller), who surpasses €10,000 in EU-wide sales from all of their sales channels.
We typically advise serious online businesses planning to exceed €10,000 in annual sales to register before reaching the threshold to ensure future VAT compliance.
Typically, well-established online businesses sell simultaneously on several platforms including marketplaces (like Amazon, eBay) and on their own website. This necessitates a platform that unifies their sales channels and ensures invoicing compliance with complex EU VAT rules and OSS sales data, all in one place - enter SimpleVAT.
The OSS scheme provides marketplace sellers with the simplest path to achieving full EU VAT compliance and fulfilling VAT obligations in each country where they sell.
Marketplace sellers often engage in numerous cross-border transactions within the EU. Platforms such as Amazon, Etsy, eBay, Kaufland, Cdiscount, ManoMano, Zalando, Allegro, and Emag enable sellers to reach customers across the EU and beyond.
When selling on these platforms, sellers are responsible for VAT collection (unless their goods are not stored in the EU) and subsequently reporting and remitting it to the appropriate jurisdiction where the sale occurred. The OSS scheme simplifies this process, provided sellers have an efficient method of collecting sales data and processing it to meet OSS requirements.
SimpleVAT seamlessly integrates with leading marketplaces to offer automated invoicing for both B2C and B2B transactions. Our platform ensures meticulous data collection and processing in alignment with EU VAT regulations. The result? Precise, error-free data ready for OSS report filing, eliminating manual work and mitigating the risk of incorrect filings and associated penalties. Our platform accurately applies the appropriate VAT rates based on the purchase country and shipping location for each order. We verify VAT numbers through VIES for B2B transactions, conduct currency conversions as needed (according to official rates), and consider any other pertinent factors that influence VAT rates for individual orders.
The OSS scheme extends to EU website owners who may also engage in marketplace sales, adding complexity to the compilation and processing of data required for OSS VAT returns.
EU website owners must recognize that the €10,000 threshold for EU-wide sales applies to their entire business, regardless of the platform. Integration of sales data from all channels is essential for accurate OSS VAT reporting post-registration.
SimpleVAT simplifies this process by seamlessly integrating with websites and marketplaces, allowing easy data gathering and centralized invoicing. Our platform supports various website platforms such as Shopify, Magento, WooCommerce, and others.
NOTE: When operating your own website, it is advisable to implement a solution for adjusting product prices based on the VAT rate of the visitor’s country to maintain a consistent profit margin. If you do not have pricing which accounts for different VAT rates and choose to apply a price with a single VAT rate throughout your whole website (e.g. 20% for France), if someone from Denmark purchases, you would owe 25% VAT on that purchase, and the surplus would be coming from your profit margin. VAT rates in the EU vary from 17% in Luxemburg to 27% in Hungary.
NOTE: when operating your own website, it is advisable to implement a solution for adjusting product prices based on the VAT rate of the visitor's country to maintain a consistent profit margin. If you do not have pricing which accounts for different VAT rates and choose to apply a price with a single VAT rate throughout your whole website (e.g. 20% for France), if someone from Denmark purchases, you would owe 25% VAT on that purchase, and the surplus would be coming from your profit margin. VAT rates in the EU vary from 17% in Luxemburg to 27% in Hungary.
Regardless of your website setup, SimpleVAT ensures compliance with EU VAT and accountancy principles, issuing invoices and collecting OSS data by calculating the appropriate VAT based on destination country and order value, and managing currency conversions if necessary.
There's a common misconception regarding the Union OSS and Non-Union OSS schemes, often assuming that their distinction is solely based on whether the seller is established in the EU. While this is a factor, the Non-Union OSS specifically caters to non-EU sellers offering services and digital products, whereas the Union OSS applies to those selling physical goods, regardless of EU or non-EU status, but also to EU sellers who sell those same services and digital products.
Union OSS registration occurs in the seller's country of establishment for EU sellers, or in a country where stock is imported and maintained for non-EU sellers. In contrast, Non-Union OSS registration can take place in any EU member state, at the seller's discretion.
In the case of Union OSS, EU suppliers are advised to register in their country of establishment using their domestic VAT number. Conversely, non-EU sellers should register in the EU member state where they have a fixed establishment or maintain stock and are VAT registered. Following registration, no new ID or number is issued; you continue using your existing VAT number for identification purposes.
Under the Non-Union OSS scheme, non-EU suppliers do not need to be VAT registered. Upon registration, they receive an ID number solely for identification within the Non-Union OSS scheme, distinct from a regular VAT number.
SimpleVAT offers a comprehensive solution for online sellers seeking One Stop Shop (OSS) VAT registration to fulfill their EU VAT compliance requirements. Our services include:
for non-EU businesses opting to utilize the OSS scheme for their EU sales.
for both EU and non-EU businesses engaged in intra-community transactions of goods and services.
for cross-channel invoicing and streamlined OSS data processing.
using meticulously accurate data.
While each service can be utilized independently, they are most effective when utilized together as a comprehensive EU VAT compliance package.
The registration process involves:
The processing time for OSS registration can vary among different tax authorities in the EU and depends on the completeness and accuracy of the application information provided. While OSS registration is generally more streamlined compared to traditional VAT registrations in multiple EU member states, it may still take several weeks for the tax authority to process your application and issue your OSS registration number.
After registration, you are obligated to submit VAT returns quarterly via a Union OSS VAT declaration or a non-Union OSS VAT declaration, respectively. Even if you have no sales, a declaration must still be filed.
Adherence to deadlines and requirements for OSS return submissions is crucial.
Our SimpleVAT software streamlines the reporting process, simplifying the transfer of data into your declaration for submission. As a comprehensive solution provider, we also offer a filing service, alleviating concerns about accurately completing the declaration and meeting filing deadlines—leaving it all in our capable hands.
| Software | Price |
|---|---|
|
SimpleVAT Pro: VAT/OSS reporting and analytics for upwards of 60 orders per month
Everything your accountant needs for filing your VAT/OSS returns
|
60.00 €
/ month
recurring
|
|
SimpleVAT Lite: VAT/OSS reporting and analytics for up to 60 orders per month
Everything your accountant needs for filing your VAT/OSS returns
|
25.00 €
/ month
recurring
|
| Service | Price |
|---|---|
| VAT registration | 190 € / country (one-off) |
| VAT filing |
50 €
/ country / month
recurring
|
| Import OSS (IOSS) filing |
60 €
/ month
recurring
|
| Union OSS (UOSS) filing |
60 €
/ month
recurring
|
| Non-Union OSS filing |
60 €
/ month
recurring
|
| VAT retrospective filing | 50 € / country / month (one-off) |
| VAT corrective filing | 60 € / country / month (one-off) |
Partner with SimpleVAT today and let us handle the complexities of VAT regulations while you focus on growing your business. Contact us now to learn more about our expert VAT filing services and take the first step towards effortless VAT compliance.
