VAT registration services
VAT registration services

VAT Registration Services: Make EU Tax Compliance Simple with IOSS and OSS

Myriad Finance
January 20, 2025 0 Comments

Are you selling to customers in the European Union and wondering how to handle VAT? Managing tax across different countries can feel complicated, but the EU has introduced two systems—Import One-Stop Shop (IOSS) and One-Stop Shop (OSS)—to make things much simpler for businesses like yours.

In this blog, we will explain the differences between IOSS and OSS, help you decide which one suits your business, and show you how they can save you time and improve your customers’ experience.

What is VAT, and Why Does it Matter?

VAT is a tax added to most goods and services in the EU. It is different from sales tax in the U.S. because it is charged at every step of the supply chain. However, the final cost is passed on to the customer.

If your business sells products to customers in the EU you are likely required to collect and pay VAT. The EU’s IOSS and OSS systems simplify this process making it easier to manage VAT obligations when selling to EU customers. However, if you need any help, the VAT registration services easily help you.

What is the Import One-Stop Shop (IOSS)?

The IOSS system is simply designed for businesses outside the EU selling goods worth €150 or less directly to EU customers. 

Key Features of IOSS

  • Applies to Goods Under €150: Most items except excise goods like alcohol as well as tobacco, qualify.
  • VAT at the Point of Sale: You charge VAT based on the customer’s location at checkout.
  • Single registration: Registering in one EU country easily covers all EU sales under IOSS.

EU VAT OSS

 

How to Register for IOSS

Non-EU businesses need an EU-based intermediary to help with IOSS registration as well as VAT filings. However once registered, you can file a single monthly VAT return for all EU sales.

What is the One-Stop Shop (OSS)?

OSS is for businesses selling goods and services across EU countries. In fact, EU VAT OSS simplifies EU VAT compliance for cross-border sales within the EU.

Key Features of OSS

  • Covers EU-to-EU Sales: It applies to both physical goods as well as digital services.
  • Single Registration: Businesses can register in one EU country for all VAT obligations.

How to Register for OSS

Non-EU businesses must register for OSS in one EU country. From there all VAT for eligible sales is reported and paid through that country’s tax authority.

IOSS vs. OSS: Which One Do You Need?

If you are selling to customers in the European Union (EU) you have probably heard about IOSS and OSS. But which one should you use? Let’s break it down in simple terms.

  • Use IOSS for selling low-value goods (€150 or less) directly to EU customers.
  • Use OSS for cross-border sales of goods or digital services within the EU.

Final Thoughts

At Myriad Finance, we understand that navigating VAT compliance can be challenging for businesses expanding into the EU. Whether you need help with IOSS or OSS VAT registration, OSS VAT filing, or ensuring EU VAT compliance, our expert team is here to guide you every step of the way.

Contact us today and let us simplify your VAT processes so you can focus on growing your business and delivering great experiences to your customers.