One Stop Shop

At Dendary we are always up to date with all the changes happening at Amazon. And the topic of taxation, even if it is a bit more complicated and tedious than the ones we usually talk about on the blog, could not be left out, especially with the changes that are coming. That is why, with the help of our financial team and our Account Managers, today we are giving you a summary of the new One Stop Shop (OSS) system.

Let's get down to the nitty-gritty:
As of 1 July, a change in European VAT legislation on e-commerce in B2C sales is set to take effect. This change removes the current sales thresholds (€35,000 or €100,000) that required sellers to register in the Member State where the good is consumed and to comply with VAT obligations in that State.
This is replaced by a new threshold of €10,000 for distance sales made in all EU countries (i.e. there will be a joint threshold). If this threshold is exceeded, sales will be subject to VAT in the country of destination from which the final consumer made the purchase.

In other words: If Juan sells stickers in Europe from Spain and exceeds €10,000 in sales, Giussepe, when buying stickers from Rome, will have to pay the value added tax stipulated in Italy.

To simplify this whole process, the One-Stop-Shop system, also called OSS, has been created.

Under this system, businesses are no longer required to register for VAT in each EU country in which they sell, nor are they required to file VAT returns in the countries in which they are registered.
The One-Stop-Shop is therefore a significant improvement as it will eliminate the high administrative burden of obtaining and managing VAT registration numbers in different EU territories. By opting for this one-stop shop system, you will be able to declare all EU B2C distance sales with a single quarterly VAT return (Form 369) through the AEAT.
OSS returns, made through Form 369, must be filed quarterly within a maximum period of one month from the end of the previous quarter.

The One-Stop-Shop refers only to sales. However, it does not remove other obligations to obtain a VAT registration number. In other words, if you store inventory in another EU country, it is still mandatory to register a VAT number and declare the VAT due in that member state.
Also, like every rule, the SSO has its exception, and in this case, it is Germany. In this market, the sales threshold is eliminated. So, if you sell your products in this market, you must, regardless of the total amount of your sales, be registered in the One-Stop-Shop system or have a German VAT number, the acronym of which is "MWSt".

How to register in the One-Stop-Shop system?
It is as simple as filling in form 035 and, once the registration has been confirmed by the Tax Agency, configuring the changes in the Amazon profile.

At Dendary we are dedicated to e-commerce management, not to the fiscal aspects of sales. However, we are always up to date with all the new developments and changes that interfere with our clients' day-to-day business. So, if you want to professionalise your sales through this channel, do not hesitate to contact us.