VAT OSS Services UK

EU One Stop Shop (OSS) VAT Registration & Compliance for UK Businesses

Audit Consulting Group provides specialist VAT OSS services for UK businesses selling goods and digital services to consumers within the European Union.

Following Brexit, UK companies making B2C cross-border supplies into the EU face new VAT compliance requirements. The EU VAT One Stop Shop (OSS) scheme allows businesses to register in one EU Member State and report VAT due across all participating EU countries through a single quarterly return.

Failure to comply may result in:

• EU VAT penalties

• VAT registration obligations in multiple EU states

• Delayed customs clearance

• Marketplace suspension

• Financial penalties and interest

Specialist VAT OSS compliance is essential for cross-border trading stability.

What Is VAT OSS?

The VAT One Stop Shop (OSS) is an EU VAT simplification scheme introduced in July 2021 to replace the Mini One Stop Shop (MOSS).

The scheme allows businesses to:

• Declare B2C VAT on cross-border EU sales

• Submit a single quarterly VAT OSS return

• Pay VAT due to one EU Member State

• Avoid registering separately in multiple EU countries (in many cases)

OSS applies to:

• Distance sales of goods to EU consumers

• Cross-border digital services

• Certain platform-mediated sales

• Marketplace-facilitated transactions

VAT OSS is designed for B2C transactions only.

Post-Brexit VAT OSS Position for UK Businesses

Since the UK left the EU VAT system, UK businesses must use the Non-Union OSS scheme when selling digital services to EU consumers, or the Union OSS scheme if established within the EU.

UK businesses typically require:

• EU VAT registration in one Member State

• Non-Union OSS registration

• Import OSS (IOSS) for goods under €150 (where applicable)

Choosing the correct scheme is critical.

When Is VAT OSS Required?

VAT OSS becomes relevant when:

• Selling digital services to EU consumers

• Supplying goods cross-border within the EU

• Using online marketplaces

• Exceeding EU distance selling thresholds

• Operating an EU warehouse

Even small businesses may require VAT OSS compliance if trading cross-border.

VAT OSS vs IOSS – Key Differences

Incorrect scheme registration may create compliance gaps.

Our VAT OSS Services

1. VAT OSS Registration

We assist with:

• Non-Union OSS registration

• Union OSS registration (if applicable)

• IOSS registration (where required)

• EU VAT number applications

• Intermediary arrangements (if mandatory)

Correct registration prevents reporting delays.

2. VAT Classification & Rate Mapping

EU VAT rates vary by Member State.

We review:

• Product classification

• Digital service classification

• Reduced vs standard VAT rates

• Country-specific rate application

• Evidence requirements for place of supply

Incorrect rate application is a common compliance failure.

3. Quarterly VAT OSS Return Preparation

We prepare and submit:

• Quarterly OSS returns

• Country-by-country VAT breakdown

• Supporting transaction reports

• Payment calculations

Accuracy is essential to avoid EU tax authority queries.

4. Ongoing Cross-Border VAT Advisory

We provide guidance on:

• Marketplace deemed supplier rules

• EU warehouse obligations

• Distance selling thresholds

• Reverse charge mechanisms

• VAT implications of refunds and returns

OSS compliance must align with operational structure.

Place of Supply Rules – Critical Compliance Area

For B2C digital services, VAT is due in the customer’s Member State.

Businesses must collect:

• Two pieces of non-contradictory evidence of customer location

• IP address

• Billing address

• Payment provider location

Failure to maintain evidence may invalidate VAT treatment.

Distance Selling & Goods Thresholds

EU-wide threshold for distance selling is generally €10,000 (for EU-established sellers).

For UK businesses, local EU VAT registration may still be required depending on structure.

Complex logistics models (e.g., Amazon FBA EU) may trigger additional VAT registrations.

Professional review is necessary.

Common VAT OSS Compliance Risks

From practical experience, common issues include:

• Incorrect VAT rate mapping

• Misclassification of digital vs physical goods

• Missing customer location evidence

• Failure to register for IOSS

• Underreporting EU sales

• Double VAT payment

• Marketplace misalignment

These errors may lead to:

• EU tax audits

• Financial penalties

• Marketplace suspension

• Reputational damage

Case Study 1 – UK Digital Services Provider

Issue: Selling SaaS subscriptions to EU customers without OSS registration.
Risk: Underreported EU VAT.
Solution: Non-Union OSS registration, retrospective reconciliation and compliant quarterly filing.
Outcome: Regulatory alignment and reduced penalty exposure.

Case Study 2 – E-Commerce Retailer

Issue: Incorrect VAT rate application across multiple EU states.
Risk: VAT underpayment and audit risk.
Solution: EU VAT rate mapping system implementation.
Outcome: Accurate OSS reporting and improved margin visibility.

Case Study 3 – Marketplace Seller

Issue: Confusion between marketplace deemed supplier and direct sales reporting.
Risk: Duplicate VAT declaration.
Solution: Transaction flow audit and OSS adjustment.
Outcome: Corrected filings and prevention of double taxation.

Filing Deadlines & Payment Requirements

VAT OSS returns must be:

• Filed quarterly

• Submitted by the end of the month following the quarter

• Paid in full within deadline

Late submission may result in penalties from the Member State of identification.

Repeated non-compliance may result in exclusion from OSS scheme.

Record-Keeping Requirements

Businesses must retain:

• Transaction records

• Customer location evidence

• VAT calculations

• Payment confirmations

Records must generally be retained for 10 years.

Failure to maintain documentation may invalidate compliance.

Benefits of Professional VAT OSS Services

Working with Audit Consulting Group ensures:

• Accurate EU VAT compliance

• Reduced risk of penalties

• Centralised VAT reporting

• Proper VAT rate mapping

• Clear transaction classification

• Ongoing advisory support

VAT OSS compliance requires precision and technical understanding.

VAT OSS & Marketplace Compliance

Platforms such as Amazon, eBay and Etsy may act as deemed suppliers in certain scenarios.

We review:

• Marketplace VAT responsibilities

• Seller VAT obligations

• Reporting alignment

• Data reconciliation

Platform transactions require specialist oversight.

Extended FAQ – VAT OSS

Do UK businesses need VAT OSS?

Yes, if supplying B2C digital services or certain goods to EU consumers.

Is VAT OSS mandatory?

It is optional, but without it businesses may need multiple EU VAT registrations.

What happens if I miss a filing?

Penalties may apply, and repeated failures may result in scheme exclusion.

Does OSS replace local VAT registration?

Not in all cases — warehousing and certain supplies may still require local registration.

Can we correct past errors?

Yes, through structured reconciliation and amended returns.

Nationwide VAT OSS Support

We support UK businesses trading into:

Germany
France
Spain
Italy
Netherlands
Ireland
Belgium
Sweden
Poland
And all participating EU Member States

Secure digital systems enable full remote VAT OSS management.

Secure Your EU VAT Compliance Today

VAT OSS compliance is essential for UK businesses trading with EU consumers.

Audit Consulting Group provides specialist VAT OSS services ensuring:

• Correct scheme registration

• Accurate quarterly OSS returns

• Proper VAT rate application

• Reduced audit exposure

• Structured compliance monitoring

If your business requires VAT OSS registration or compliance support, request a structured VAT review today.

Ensure EU compliance.
Ensure VAT accuracy.
Ensure cross-border stability.