EU VAT vs. OSS VAT

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Many of you have been asking us the questions: “What is the difference between EU VAT and OSS VAT ? Do I pay double VAT?”. In this article, we will answer these questions and eliminate your questions and doubts.

The One Stop Shop has been in place for over a year now. The first concerns and questions have been cleared, and we are starting to adapt to the new regulations. Our article “One Stop Shop – One year later” examines the impact of these changes. 

The answers to some questions have been provided, but new ones have been raised. Hopefully, we can clear up some doubts once and for all.

In order to get a better understanding, let’s start with some basic questions:

  • What is VAT? 

VAT is a consumption tax. It applies to digital and physical goods and services, which are sold in the EU. Whenever a value is added to the product, through the supply chain, it is being charged. 

  • Who collects the VAT?

VAT must be collected by every business selling physical or digital goods in the EU, including non-EU businesses. 

  • What is One Stop Shop?

One Stop Shop, or shortened OSS, has been introduced on the 1 July 2021 and is designed to simplify the European VAT return filing system for businesses. If you want to read more about OSS, please visit our blog article on this topic. 

As you read above, there are two types of VAT: the “regular” EU VAT and the “new” OSS VAT.  What are the differences between them?

  • What is a VAT return and what is being filed in it? 

On a monthly or a quarterly basis (depending on the country), you have to file VAT returns with the tax authorities. It is very important to file the returns on time. Note: Even if no sales took place and you have no VAT to pay, a return has to be filed. 

VAT must be reported in two forms: the output VAT you charge your customers and the input VAT you pay your suppliers. From the VAT you charged, you will also need to deduct the VAT you paid.

  • What is the OSS VAT return and…


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