What is OSS (One-Stop-Shop)?

This page is only relevant to you, if you are selling from within the EU.

Within Europe, purchases of digital products by private individuals are taxed in the country of the purchaser above a certain limit. This results in different VAT being due on purchases (between 17-27%).

For example, if an Italian individual purchases from a seller in Germany, Italian VAT will be due (22%). This sales tax must be paid to the Italian tax authorities. However, with 27 EU countries, it is not practical to register separately with each tax authority. Therefore, sales tax receipts from other EU countries can be reported quarterly to a central tax authority in the home country.

This system is commonly referred to as OSS (One-Stop-Shop). Specifically, the term "OSS" refers to the fact that a single portal bundles the reporting, documentation and payment of VAT for all member states.

More info on the OSS procedure.

Is participation in the OSS procedure mandatory?

The taxation of sales on the basis of the OSS procedure is only mandatory from an annual net turnover of €10,000 with private individuals outside the home country. Below this threshold, it is optional.

If not participating in the OSS, the VAT rate of the home country is used for sales to other EU countries. In this case, there is also no need to submit an additional quarterly tax return.

Do I have to pay attention to anything special?

You only have to indicate in your Tentary account settings whether you participate in the OSS procedure. Based on this setting, the correct sales tax will be calculated automatically on your sales page.

Please note that the official and legally binding decision whether you participate in the OSS procedure is made by you and your local tax authority. The setting in your Tentary account only determines how sales tax is calculated on your sales pages.

If the buyer has requested an invoice, the following information will appear on the invoice:

VAT rate from the country of the recipient of the service (OSS procedure).

How do I know how much VAT has been paid?

At the end of each month, you will find a new monthly overview in your account. This contains a summary of all sales (including VAT).

More useful resources on the topic:

What is One-Stop-Shop (Explanation from the Federal Central Tax Office) (in German)
Registration and tax return OSS in Germany (in German)
Step-by-step instructions for reporting OSS sales in Germany (in German)

Note: we do not provide tax advice, please contact your tax advisor for details.