One Stop Shop scheme: how does it work?
With OSS, you report foreign VAT for certain sales and services via a single portal to the Tax and Customs Administration. You state the turnover, rate and VAT per country. The Tax and Customs Administration forwards the return and payment. The Union scheme operates quarterly; the Import scheme monthly. Foreign stock or other local activities may also necessitate a local VAT registration.
Advantages
OSS can replace individual foreign returns for the participating sales. You remain personally responsible for the correct countries, rates, amounts and timely reporting. Participation does not automatically prevent errors or fines.
The Union scheme within OSS (one-stop system)
The Union scheme can be used for intra-Community distance sales of goods and certain services to consumers in other EU countries. Think of a Dutch webshop that sends goods to German or Belgian customers. First assess where the supply is taxed; not every service falls under the same rules.
The Import Scheme
The Import One-Stop Shop (IOSS) is intended for certain distance sales of imported goods in consignments with a value of up to €150. Excisable goods are excluded. You report the VAT on a monthly basis. Check whether the sale and import meet the conditions; the IOSS does not replace all customs obligations.
Why submit an OSS return?
If foreign VAT is due, you must report it correctly. OSS is voluntary: for eligible supplies, you can report that VAT centrally. Without OSS, you handle the foreign VAT via the applicable local registration and return. Read the explanation from the Tax and Customs Administration about OSS.
When does foreign VAT apply?
The joint threshold of €10,000 excluding VAT applies under certain conditions to intra-Community distance sales from the Netherlands and digital services to consumers in other EU countries. Your business is established solely in the Netherlands and the relevant turnover does not exceed €10,000 in either the current or the previous calendar year. Other services have their own place-of-supply rules.
Example: you sell €4,000 to Belgian consumers, €3,000 to German consumers and €4,000 to French consumers in one year. When the threshold is exceeded, foreign VAT applies to the entire sale that takes you over the threshold, not only the amount above €10,000. OSS itself remains voluntary. Read the conditions of the €10,000 threshold. Even below that threshold, you can opt for taxation in the country of destination under certain conditions.
Calculating VAT in the OSS declaration
Use the rate of the country where the supply is taxed and record the relevant turnover and VAT per country. You do not deduct input VAT in OSS. Foreign VAT on costs is also not automatically deductible in the Dutch VAT return: a foreign refund procedure or local return may apply for that. Keep OSS separate from your standard VAT return.
Filing an OSS return with the Dutch Tax and Customs Administration
Log in via Mijn Belastingdienst Zakelijk. The Union scheme normally starts on the first day of the following quarter. In the event of an initial supply earlier than that date, participation can start sooner, provided your registration is received by the tenth day of the following month at the latest. Check the confirmed start date.
For the Union scheme, these ultimate submission deadlines apply:
- 1st quarter: 30 April
- Q2: 31 July
- Q3: 31st October
- Q4: 31st January
Also submit a return with no relevant turnover. IOSS has monthly returns. Follow the payment instructions for the correct scheme.
Do not resubmit a previous notification: incorporate corrections into a subsequent notification, no later than three years after the original notification deadline. Retain the relevant administration for ten years after the end of the year in which the performance took place.
The KOR and EU-KOR have their own terms and conditions. Do you supply business customers? Then check when the VAT reverse-charge mechanism applies. If you need help with OSS, discuss which sales and countries need to be included.
