How to German businesses register OSS and make a declaration?

The One-Stop Shop (OSS) procedure allows German companies to simplify their VAT reporting for cross-border sales within the European Union. Through this system, businesses can declare and pay VAT on goods and services sold to consumers across EU member states via a single portal, avoiding the need to register for VAT in each individual EU country.

OSS declaration

Understanding the OSS system for German companies

The OSS is an EU-wide initiative that enables businesses to report and pay VAT on sales to EU customers in one single return, instead of having to register for VAT in each member state where they make sales. This system applies to both goods and services and is designed for businesses making sales to non-taxable persons (i.e., private consumers) in other EU countries.

Registering for the OSS system in Germany

German companies can register for the OSS system through the Elster online portal, the official platform for tax administration in Germany. This registration is required if your business:

  • Makes sales of goods or services to EU consumers and exceeds the €10,000 threshold (or if you opt into the OSS scheme voluntarily).
  • Wants to streamline VAT reporting by handling all EU sales from a single point of contact.

The registration must be done before the end of the calendar quarter in which you start making sales under the OSS scheme.

 How to file OSS VAT returns in Germany?

Once registered for OSS, German businesses must submit quarterly VAT returns, which include:

  • Sales within the EU: Report the VAT due for all goods and services sold to consumers in other EU countries.
  • Country-specific VAT rates: VAT is reported at the rate applicable in the customer’s country.
  • Sales breakdown: The return requires a breakdown of sales for each EU member state where VAT is due.

The OSS VAT return must be submitted by the end of the month following the end of each calendar quarter. For example, the return for Q1 (January-March) must be submitted by the end of April.

Paying VAT via the OSS system

German companies must pay the VAT due for all EU sales through the OSS system. The payment is made directly to the German tax authorities, who will then distribute the VAT to the appropriate EU member states.

Advantages of the OSS declaration for German companies

  • Simplification: Businesses no longer need to register for VAT in each country where they make sales. The OSS centralizes the reporting and payment process.
  • Time and cost savings: The OSS system reduces administrative burdens and the need to comply with multiple tax regimes across the EU.
  • Efficient VAT management: German businesses can manage VAT obligations for all EU sales through a single quarterly return.

The One-Stop Shop (OSS) procedure is an invaluable tool for German companies engaged in cross-border sales within the EU. It simplifies VAT reporting, eliminates the need for multiple VAT registrations, and streamlines the entire tax process. By registering for OSS and filing the appropriate quarterly returns, businesses can ensure they remain compliant with EU VAT regulations while minimizing administrative overhead.