What should I know about OSS and VAT?

We remind you that since 1 July 2021, the value added tax (VAT) accounting system in the European Union (hereinafter - the EU) has changed.
Order trading through e-commerce platforms, i. y. and through our marketplace. These changes apply to sales of goods (including used car parts) to non-VAT private and legal purchasers in other EU countries.

One-Stop Shop (OSS) principle for VAT accounting when trading in more than one EU country has been launched in the EU since 01/07/2021. The aim of the OSS is to reduce the burden of VAT accounting and payment on businesses, as there will be no need to register separately for VAT in each EU country. 

With the introduction of the OSS principle, VAT on goods sold to other Member States will be declared and paid by one payment on a quarterly basis at the local tax office. 
VAT payers will have to be subject to the VAT rate of that country, e.g. you sell from Lithuania, and the recipient of the goods is in Germany, therefore, the German VAT rate will have to be applied - 19% instead of the Lithuania's 21%.

The registration limit of the OSS obligation is EUR 10,000 for sales to private and legal persons (Non VAT payers) to all EU countries put together, i. y. on average 830 Eur / month. You can check how much You sold to other counties by getting excel export of sales in system (Documents; you can find CSV (Excel) at the bottom of the page).
Please note that the OSS limit also applies to non-VAT payers.

The goods sold by you will be subject to the VAT rate according to the rate of the buyer's country, e.g. if you are a VAT payer and the price of the product sold is 121 Eur, then when selling this product to Germany, the German VAT rate will be applied and
the price of the goods will be recalculated according to the following principle: 121 Eur - 21% LT VAT rate + 19% DE VAT rate = 119 Eur. A VAT invoice with a 19% VAT rate will be generated for the sale in the RRR | Ovoko system and it will be indicated that the OSS has been applied.

If you are not a VAT payer, but have exceeded the sales limit of EUR 10,000 to other EU countries, your goods must also be adjusted according to the VAT rate of the buyer's recipient country. Your prices for RRR | Ovoko buyers from other countries will be recalculated
on the same principle: price of the goods -21% LT VAT rate + VAT rate of the buyer's country. 

We remind you that RRR is not obliged to account for and declare OSS to the VAT Tax authorities.

Please provide your company's OSS code by contacting us here: csm@ovoko.com