EU VAT One-Stop-Shop Scheme: MOSS, OSS and IOSS
The OSS Scheme
OSS stands for One-Stop-Shop and is a simplified system for suppliers to account for VAT due on sales to consumers (i.e., non-VAT registered customers) across the EU. If sales to consumers are subject to VAT in the consumer’s territory, rather than registering for VAT in every EU territory where they have customers, suppliers can register in one member state (the so-called member state of identification’) and account for VAT due across the EU on a single return.
There are two OSS schemes, the Union scheme (for suppliers established in the EU) and the non-Union scheme (for suppliers established outside the EU).
The Union OSS is for:
- EU-based sellers who ship goods within the EU (i.e., from one member state to another).
- Sellers based outside the EU, only for goods shipped within the EU (i.e., goods are located in the EU at the time of sale and are shipped from one member state to another).
The Non-Union OSS is reserved for:
- Sellers based outside the EU, for all supplies of services provided to customers in the EU.
The IOSS Scheme
The IOSS stands for Import One-Stop Shop and is a scheme that facilitates the import into the EU of goods of a value of €150 or less. The previous VAT exemption threshold of €22 no longer applies: VAT is due on all imported goods and should be charged to customers at the time of sale.
EU sellers will be able to report such transactions within the IOSS return in their home country, instead of needing to register in multiple EU locations. Non-EU sellers will only need to register for IOSS in a single EU state to be able to declare VAT on such sales.
The MOSS Scheme
The MOSS (short for Mini One-Stop-Shop) scheme was the predecessor of the OSS scheme and has been replaced by it on July 1, 2021. It was first introduced in 2015 and originally allowed sellers to account for VAT in one country, rather than multiple EU countries as standard. Only certain types of services were eligible for the scheme, applying to sellers in the broadcasting services for TV and radio, telecommunication and digital industries.
Since 1 July 2021, the MOSS has been extended to all business-to-consumer (B2C) services taking place in EU Member States where the supplier is not established.
If you aren’t sure how the changes to VAT processes will affect your business, we can help you. Get in touch with our experts to find out how.