EU taxation with the One-Stop-Shop
Tuesday, June 22, 2021

EU taxation with the One-Stop-Shop

The "One-Stop-Shop" tax procedure (OSS) is a newly issued special regulation in the field of sales tax. Anyone who makes more than 10,000 euros in total sales in other EU countries should take care of OSS. As of July 1, 2021, from the first euro in each EU country served the VAT declaration will be necessary, including the corresponding formalities. This will make your work easier from a tax point of view, but also conversion work for your accounting, about which your tax advisor will be happy to advise you. What the need for change in the store system: below we show you how to prepare it for OSS.

What is the benefit of OSS?

With OSS, sales tax returns can be transmitted centrally to the German Federal Central Tax Office in a single process, and no longer to each EU country separately. Entrepreneurs who are based in Germany and sell to other EU countries can take advantage of this.

Whoever has registered for the OSS procedure, can from July 1, 2021, exported sales and sales covered by the special regulation. report via the OSS, but are not required to do so. OSS use is voluntary.


However, the procedures are not as complete as presented by tax authorities. B2B deliveries, own shipping warehouses abroad, deliveries from a foreign warehouse to the domestic market are not currently supported.

In practice, some manual and additional work remains with the taxpayer and his tax advisor. Also, in order to avoid penalties because of missed tax deadlines to risk.


Technical implementation with Smartstore

For the launch of OSS (One-Stop-Shop), you are in an excellent position with the Smartstore e-commerce system.

If you want or need to participate in the One-Stop-Shop system, you only need to make the following change in the admin area of your Smartstore store.

  • In the admin area, go to Configuration -> Regional Settings -> Taxes.

  • In "Taxes" change the setting from "Fixed tax rate" to "Tax by region".

  • As a precaution, move the mouse to "Control by region", click on the gear wheel that then appears and click on the then appearing "Configure".

  • In the "Configure - Tax by Region" screen, please check if all required tax rates for the countries activated in the Store activated countries are available. If this is not the case, the tax rates can now be added. Here is an example for activated countries Germany and Austria:

With this all settings are made, what concerns the store. So the presentation of the sales tax rates, and the correct calculation in the shopping cart and the order confirmation.

Note: if you make the switch to "tax by region" for the OSS, should be stored in the store net prices as item prices, i.e. prices without sales tax. The addition of the sales tax is then left to the store system. For optimal function the article prices must not be entered as gross prices. Otherwise the store would reduce the net price of the products by itself, if an order is placed from a country with a higher tax rate, e.g. Austria with 20 percent. Accordingly, the margin for Austria sales decreases. On the other hand, with stored net price and gross price display calculated from it, it is hardly possible to realize fractional prices for all EU countries (prices just below a round amount, like 9.99 EUR, 19.97 EUR and similar). If this pricing is essential for your business model, country stores in the form of own store instances are a good choice.

What's next?

For the other OSS procedures that take place for you outside the store system - such as invoicing store customers. or OSS tax reporting - please contact your invoicing software provider and your tax advisor. Also organizations such as the Händlerbund offer support and arrange specialized service providers, who handle the topic of OSS and EU VAT reporting for online retailers.

Possibly the topic is a good occasion to restructure your invoicing. Not every invoicing software can and will support OSS support. If you have any questions about this, please feel free to contact us.

The guide to using the OSS explains how to register in the OSS/IOSS portal and how to enter and pay VAT there. For more info on the topic, visit the official website of the European Union. 

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Comments (1)

Guest | 10 months ago

Verunsichert es den Kunden nicht wenn ein Artikel mit 20€ (at) beworben wird und im Checkout plötzlich 20,16€ (it) oder 19,83 (de) kostet? Ist das nicht sogar rechtswidrig, jedes Land darf nicht unterschiedliche Preise haben.