One Stop Shop (OSS): A Practical Guide for E-shops

Do you sell goods to end customers in other EU countries? Since 2021, the One Stop Shop (OSS) regime has significantly simplified life for online sellers. However, many companies still make mistakes in it. Here is an overview of the most important things you should know as an e-shop owner.

What is OSS?

The One Stop Shop regime allows e-shops to declare and pay VAT on sales to the entire European Union in one place – at the Czech tax office. You do not need to register for tax in every country to which you send a package.

When does OSS apply to you? (Limit of 10,000 EUR)

The key figure is 10,000 EUR (approximately 250,000 CZK).

Within this limit: You can sell at the Czech VAT rate (21%) and pay it in the Czech Republic.
Above this limit: You must apply the VAT rate applicable in the customer's country (e.g., 19% in Germany, 22% in Italy) and pay this tax. This is where OSS comes in as a tool that saves you dozens of registrations abroad.

Main advantages of the OSS regime

One registration: You only register in the Czech Republic (via the Moje daně portal).
One declaration: Every quarter, you submit one summary declaration for all EU countries.
One payment: The tax calculated in euros is paid in crowns to the Czech tax office, which then redistributes it to the relevant countries.

What to watch out for: The most common pitfalls

The OSS regime is great, but it has its limits that can lead to high fines:

Foreign warehouses (Amazon FBA, Allegro, etc.): If you do not store goods in the Czech Republic but use warehouses in Poland, Germany, or another country, OSS is not enough. You must register for a standard VAT number in the country of the warehouse.
VAT rates in the EU: You must monitor the current tax rates in the recipient's country. If you set the wrong rate on your e-shop, the difference comes from your margin, or you risk an additional assessment by the authorities.
B2B sales: The OSS regime is exclusively for sales to end consumers (non-businesses). Sales to companies (B2B) are governed by standard rules for intra-community supplies.

How can KODAP help you?

Setting up your e-shop for the OSS regime requires proper analytics and precise reporting. We will:

Assess whether OSS is the most advantageous route for you.
Carry out the registration for the OSS regime.
Process quarterly reports and keep track of payment deadlines.
Resolve the combination of OSS with local registrations in countries where you have warehouses.

Do you want to be sure that your sales to the EU are tax compliant? Contact us.