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E-COMMERCE
The EU One-Stop Shop (EU-OSS)
The EU One-Stop Shop (EU-OSS) is intended to simplify cross‑border trade for tax purposes. However, the system has become a VAT challenge.
To relieve companies from multiple registrations in different EU Member States, the EU‑OSS was introduced. Through this portal, cross‑border sales to private individuals (B2C) in other EU countries can be reported and taxed centrally in the Member State of establishment. In order to use the EU‑OSS, the company must identify itself in a Member State and be registered for the EU‑OSS.
In Austria, the application for registration to the EU‑OSS is submitted electronically via FinanzOnline and is only possible if the company has an Austrian VAT identification number (UID).
Late‑payment and delay surcharges
It should be noted that, although the EU‑OSS acts as a central point for reporting and payments, the national rules of the individual Member States remain decisive. Companies therefore face 27 different tax authorities. Problems can arise, for example, from late‑payment and delay surcharges that may be incurred when deadlines are missed. Thus strict deadlines apply in the EU‑OSS: unlike the Austrian rules, these deadlines and dates do not shift to the next working day when they fall on weekends or public holidays, and no grace period for transfers is provided. The tax must therefore be received in the correct account of the tax office on the due date. A delayed payment can lead to interest assessments or penalties imposed by the consumer’s Member State.
Tax rates in the database
The tax rate of the Member State in which the supply is taxable is applied. The European Commission provides relevant information on the tax rates applicable in other Member States in the "Taxes in Europe" database.
It can become problematic if an EU country changes its VAT rates during the year. For companies using the EU‑OSS, such a change is challenging because sales are reported quarterly in the EU‑OSS, meaning that a tax‑rate change within a reporting period can result in two different rates applying to the same period.
Warning
The EU‑OSS cannot be used for all business models. Traders who sell their goods via dropshipping are not covered by the EU‑OSS, as dropshipping usually does not involve intra‑community distance selling from the trader to the private consumer. Such entrepreneurs must resort to the traditional route of VAT registration in each Member State in which they operate or to which they make supplies.
Companies that operate warehouses in other EU countries also usually have to make additional tax registrations. So‑called intra‑community transfers – i.e., transports from the Austrian business premises to an EU warehouse of the same company for its own use – are expressly not covered by the EU‑OSS. In addition, possible reporting obligations under the Intrastat statistics apply once certain delivery thresholds are exceeded.
In Austria, the application for registration to the EU‑OSS is submitted electronically via FinanzOnline and is only possible if the company has an Austrian VAT identification number (UID).
Late‑payment and delay surcharges
It should be noted that, although the EU‑OSS acts as a central point for reporting and payments, the national rules of the individual Member States remain decisive. Companies therefore face 27 different tax authorities. Problems can arise, for example, from late‑payment and delay surcharges that may be incurred when deadlines are missed. Thus strict deadlines apply in the EU‑OSS: unlike the Austrian rules, these deadlines and dates do not shift to the next working day when they fall on weekends or public holidays, and no grace period for transfers is provided. The tax must therefore be received in the correct account of the tax office on the due date. A delayed payment can lead to interest assessments or penalties imposed by the consumer’s Member State.
Tax rates in the database
The tax rate of the Member State in which the supply is taxable is applied. The European Commission provides relevant information on the tax rates applicable in other Member States in the "Taxes in Europe" database.
It can become problematic if an EU country changes its VAT rates during the year. For companies using the EU‑OSS, such a change is challenging because sales are reported quarterly in the EU‑OSS, meaning that a tax‑rate change within a reporting period can result in two different rates applying to the same period.
Warning
The EU‑OSS cannot be used for all business models. Traders who sell their goods via dropshipping are not covered by the EU‑OSS, as dropshipping usually does not involve intra‑community distance selling from the trader to the private consumer. Such entrepreneurs must resort to the traditional route of VAT registration in each Member State in which they operate or to which they make supplies.
Companies that operate warehouses in other EU countries also usually have to make additional tax registrations. So‑called intra‑community transfers – i.e., transports from the Austrian business premises to an EU warehouse of the same company for its own use – are expressly not covered by the EU‑OSS. In addition, possible reporting obligations under the Intrastat statistics apply once certain delivery thresholds are exceeded.