Taxation of webshops and EU suppliers – OSS and IOSS advisory and administration

We help you navigate the new EU VAT rules

One Stop Shop (OSS)

As of 1 July 2021, the One Stop Shop (OSS) system has led to major changes in the VAT rules for distance selling. This is mainly for the benefit of webshops that supply to individuals in EU countries, and can also be used for the provision of certain services.

Import One Stop Shop (IOSS) 

The Import One Stop Shop (IOSS) system offers a simple and cost-effective solution for webshops importing goods from third countries and selling to EU individuals to meet their tax obligations with minimal administration. 

The lower VAT rate abroad will significantly reduce the competitive disadvantage of Hungarian webshops and suppliers, with the highest rate in the EU at 27%.

It is therefore worth considering whether the webshop supplier can take advantage of the benefits of a foreign tax registration: competitive sales prices, a simple, transparent and efficient sales process, the lower foreign VAT and the favourable Hungarian corporate income tax. 

For services, the One Stop Shop is typically used for electronic or real property-related services provided to EU individuals, on-site training, events in other member states or passenger transport and goods transport services. 

CONSULTATION

How can RSM's personalised Webshop tax and accounting advisory service help?

We provide tax and accounting services on webshop sales and services provided in other member states, helping our clients to choose and apply the most appropriate tax treatment.

We offer our tax and accounting services to businesses that also sell to foreign individuals via a webshop, either by shipping the goods from Hungary (or from another member state other than the delivery address) to the customer, or by providing the services mentioned above to non-taxable persons (typically private individuals) in other member states.   

It is important to note that the use of OSS/IOSS is not compulsory; therefore it is always worth considering which tax treatment is best for your business.

Our tax advisors and accountants with extensive international experience are at your disposal to provide you with tailor-made 

• verbal consultation or  
• written advice,  

but you can also order our e-book for international webshops.

CONSULTATION

TAX EFFICIENT INTERNATIONAL WEBSHOP – E-BOOK

OSS/IOSS representation for webshops and suppliers

Advantages of the One Stop Shop System

1. One VAT return to rule them all

Thanks to the OSS/IOSS System, the administrative burden is reduced because it is sufficient to file a single return to the national tax authority. 

2. One single transfer

Your tax payment can be made by a single, consolidated transfer, which is split by the national tax authority and forwarded to the member states.

Content of RSM's OSS/IOSS representation service for webshops and EU suppliers: 

• We register your business in the OSS/IOSS System.
• We prepare your company's OSS/IOSS VAT return.
• We help you close tax registrations in other member states that are no longer necessary after the OSS/IOSS registration.
• If your company is established in a third country and imports to Hungary, we can act as your IOSS representative.

Why consult RSM Webshop advisory service experts? 

1. Our tax advisors assist our clients in the quick and efficient execution of tasks related to obtaining foreign tax numbers, preparing and filing foreign tax returns, addressing practical invoicing questions, and designing the most effective solutions. As part of our tax and accounting services for webshops and suppliers, we act as a single Hungarian-language coordination centre for all tasks and processes related to fulfilling foreign tax obligations. 
2. We have several years of experience in accounting for companies with foreign tax numbers. We are familiar with the accounting issues that require industry-specific knowledge and expertise to be resolved most effectively.  We provide a comprehensive accounting service, monitoring the value of foreign sales and, if required, carrying out foreign invoicing.

We provide tax and accounting advice for webshops and suppliers, including the following services:

• one stop shop coordination for foreign tax registration and tax representation;
• consultancy related to invoicing;
• consultancy related to electronic invoicing;
• comprehensive advisory pertaining to distance selling;
• identifying and checking order and sales data relevant for accounting and tax purposes;
• continuous accounting.