Since July 1, 2021, all B2C sales to EU customers are subject to VAT in the customer's EU country. To avoid VAT registrations in each member state, the OSS and iOSS scheme was created. Then registration (through a VAT intermediary) in one member state is sufficient.

VAT due in the EU

VAT may be due at the time of importation or at the time of sale. Depending on the business set-up, the seller may charge and collect local VAT in all EU countries where its products are supplied. At worst, this means that this seller must register for VAT in all these countries and file local VAT returns.

Simplification: OSS and iOSS

Fortunately, a simplification is possible. An online seller can choose to register in only one EU member state for all its distance sales to private customers in other EU countries. Through this registration, only one VAT return will then need to be filed for sales throughout the EU.

For sales within the EU, this can be through the Union scheme and the one-stop shop system (the OSS scheme: One Stop Shop). For sales from outside the EU, this is the import scheme, also called the iOSS scheme (Import One Stop Shop).

Less Grey as your VAT intermediary

Business owners based outside the EU are required to appoint an EU-based VAT intermediary if they wish to take advantage of the iOSS scheme. Less Grey can assist your business with these arrangements. For non-EU entrepreneurs, Less Grey acts as a VAT intermediary

Background iOSS regulation

Leading up to the introduction of the iOSS scheme, we conducted several webinars. Watch a replay of one of these webinars below.