OSS and VAT for sales into the EU is a topic relevant to every online store delivering to consumers in other member states, since a special tax regime applies there. Once a set threshold for total cross-border sales is exceeded, tax is remitted at the rate applicable in the customer's country, not the seller's. So that the company does not have to register separately in every state, a simplified one-stop-shop regime exists, through which the tax is declared and paid on a consolidated basis in the home state. Several practical things follow from this for an online store: tracking the volume of sales by country, setting up the system so that it can charge different rates, and adjusting prices, since different rates change the margin. Check the specific thresholds, rates, and deadlines with a tax adviser and against the current wording of the regulations, as the rules change.
See also: Reverse-charge VAT on advertising from abroad, Pricing for foreign markets, Logistics and customs.
