Overview
The EU One-Stop Shop (OSS) is a centralized VAT reporting system that simplifies VAT compliance for non-EU businesses supplying SaaS or other digital services to consumers in the European Union (B2C). Instead of registering for VAT in each member state where sales occur, OSS allows you to select a single “member state of identification” and file a consolidated quarterly return covering all 27 EU countries. The tax authority in that member state will then distribute the VAT to the relevant jurisdictions.
EU OSS registration is available on a prospective, or go-forward, basis. This means it applies from the effective date of your registration onwards and cannot be used to report sales made before that date. Any historical sales to EU consumers must be accounted for by registering for VAT in each member state where the sales took place and filing local VAT returns for those periods. This process can involve penalties, interest, and additional administrative requirements. Once historical compliance is addressed, you can register for OSS and file all EU member state sales in a single OSS VAT return moving forward.
While some businesses choose to include historical VAT amounts in their initial OSS return, it’s crucial to understand that, from a technical tax perspective, this approach is incorrect. Local tax authorities can audit and may require retrospective VAT registration and local filings for past periods. If this occurs, your business may be obligated to complete historical filings before transitioning to OSS.
Note
Anrok does not support managing historical local VAT registrations or filings directly. If historical compliance is required, you’ll need to work with one of Anrok’s international tax partners, which may incur additional costs.