VAT Rates in E-commerce When Using OSS Schemes

Once you are registered in the OSS regime for online sales of goods, you must charge VAT using the applicable rate in each country of consumption. For example, if you sell photobooks in France and Germany, you should ensure that the correct rate is charged on each sale according to the local rules in Germany and local rules in France.

The scope of reduced VAT rates is different from one country to another in the EU. There is an increased complexity where a product has a miscellaneous nature. For example, in our example above on Photobooks, it is possible that these books have a combination of text and photos. In these cases, you should evaluate carefully if you should consider them a book (often super-reduced rates) or photobook (reduced or standard rates).

It is important that you carry out a study of the applicable VAT rates on your products across the EU. Using the wrong rate can give raise to penalties or long disputes with the tax authorities to reclaim VAT that has been overcharged by mistake.

Marosa has extensive experience on the scope of reduced rates in each European country. We will create an overview with the applicable VAT rates according to existing legislation with a pan-European approach that is consistent for all Europe. Contact us to get help with your study of VAT rates.