Welcome to VATopedia, your go-to resource for decoding the complex world of EU VAT. Below are quick definitions of key terms to help demystify the jargon.
OSS (One Stop Shop)
A simplified VAT scheme that allows businesses to declare and pay VAT on cross-border sales of goods and services to consumers within the EU in a single EU member state.
Union OSS (UOSS)
The OSS scheme applicable to businesses registered for VAT within the European Union. Both EU and non-EU companies can register for Union OSS, so long as they have a VAT registration in at least one EU state and sell products stored in the EU. Those who sell digital services and accommodation, should register for Union OSS only if they are based in the EU, and for Non-Union OSS if not.
Non-Union OSS
The OSS scheme available to businesses established outside the EU but selling goods and services to EU consumers.
IOSS (Import One Stop Shop)
A VAT scheme introduced for distance sales of imported goods valued at €150 or less, allowing businesses to collect and remit VAT at the point of sale, simplifying customs procedures.
MOSS (Mini One Stop Shop)
The VAT scheme which preceded OSS, the Mini One Stop Shop (MOSS) was only applicable to businesses selling certain digital services (apps, gaming, website hosting, courses, etc.) to consumers in other EU member states. VAT was declared through a single VAT return filed in the merchant's home country.
Fiscal Representative
An entity appointed by a non-EU business to fulfill VAT obligations in an EU member state where the business is not established.
EC Sales List (ESL)
A report detailing sales of goods and services to VAT-registered customers in other EU member states.
Call Off Stock (COS)
Goods transferred under a special regime to another EU member state, where they are stored for future sale to a specific customer upon request. This requires two separate sales to be processed for each order. When this is done through Amazon, at the moment of sale, a zero-rated B2B sale occurs between your company and Amazon, followed by a subsequent sale from Amazon to the end customer. Thus, the trader does not incur an obligation for VAT registration in the country where the goods are stored.
Intra-Community Supply (ICS)
The movement of goods between EU member states where the supplier is VAT-registered in one member state and the customer is VAT-registered in another.
Intra-Community Acquisition (ICA)
The acquisition of goods from another EU member state by a VAT-registered business for business purposes.
EORI (Economic Operator Registration and Identification)
A unique identification number assigned to businesses involved in customs activities within the EU, used for tracking and monitoring goods movements.
Importer of Record (IOR)
The entity responsible for ensuring customs compliance and paying duties and taxes on imported goods.
Consignment Value
The total value of goods included in a shipment, including the cost of the goods, insurance, and freight charges.
Indirect Representative
A third-party entity authorized to act on behalf of a non-EU business for customs and VAT purposes within the EU.
IOSS Number
A unique identification number assigned to businesses registered for the Import One Stop Shop (IOSS) scheme, used for reporting and remitting VAT on imports with a consignment value of less than 150 EUR.
