One Stop Shop: A Simplified Approach to VAT in Europe

The One Stop Shop (OSS) for EU VAT: Benefits for Your Business | hellotax Interview

Hey there, fellow business owners!

If you've been struggling with VAT regulations across various markets, I have some good news for you.

Recently, I, Vova Even, had a chat with Nick Penev from hellotax, a VAT registration company, and we discussed the new VAT regime called One Stop Shop, or OSS.

In this article, I'll be sharing everything I learned from our conversation and how it can help your business.

Plus, as a special bonus for my followers, hellotax is offering a coupon code VOVA10 for discounts on their services. 

You can also get a free consultation about VAT with hellotax.

So, let's dive in and learn more about the One Stop Shop!

Psst… Below is the video version of this article for your visual pleasure. Happy watching! :)

What is the One-Stop Shop?

The One Stop Shop is a new VAT regime introduced on July 1, 2021, that allows EU-based companies to register for VAT in their home market and then register for the One Stop Shop. 

This one registration allows you to store goods in one location in Europe and deliver them to customers across Europe without the need for multiple VAT registrations.

This simplified approach means that instead of dealing with the bureaucracy of multiple markets, you only need one registration, making it easier for your business to expand. 

Once you reach the 10,000 Euro threshold, you can opt in and register for One Stop Shop in the market where you hold your stock. If you don't reach 10,000 Euro per year, you don't need to register for OSS.

We also welcome you to learn more about VAT in Europe.

How Does the One Stop Shop Work?

Let's say you're a new seller or an existing seller who has just registered for the One Stop Shop. 

You can choose an easy country to register for VAT and start selling in any country in Europe until you reach 10,000 Euros per month. Once you reach that threshold, you need to register for the One-Stop Shop, or else you'll be required to do VAT registration in each market.

Once you've registered for the One Stop Shop, you file only one report for the VAT in a specific market, such as Germany, and one quarterly One Stop Shop report for all the markets you sell to.

For example, if you sell to all the markets in Europe and you have 100,000 euros in sales, you only need to file one report in Germany and pay the VAT return there. 

The German tax authority will collect the VAT, and any obligations between Germany and other tax authorities will be handled internally, so you don't need to deal with them.

Under 10,000 Euro, you don't need to register for the One Stop Shop, but you still need VAT registration. However, since you're storing goods in one market, you only need to register for VAT there.

Benefits of the One Stop Shop

The One Stop Shop simplifies the process of VAT registration and filing for businesses, making it easier to expand into multiple markets. 

Instead of dealing with the bureaucracy and paperwork of multiple VAT registrations, you only need one, which can save your business time and money.

For US sellers, Germany is the easiest market to start with, as they accept documents in English, and you don't need to translate them into German. The process of registration can take as little as four to five weeks, which is much quicker than in other markets.

HELP ALERT!!!

If you're feeling overwhelmed by VAT regulations, don't worry! hellotax is here to help. They can provide you with more information and even a free consultation. All you have to do is click on the link below and book your consultation today. It's that simple!

https://bit.ly/Hellotax

Conclusion

The One Stop Shop is a great way for EU-based companies to simplify the VAT registration process and expand into multiple markets. 

By registering for the One Stop Shop, you only need to deal with one registration and one VAT return, making it a much simpler approach to VAT compliance. If you're a US seller looking to expand into Europe, Germany is the easiest market to start with, making it a great option for your business.

That's it for today and I'll see you next time.

Best regards,

Vova :)

P.S. - want to read a full review about hellotax? The article that discusses it is here.

While the video is below. Enjoy!