Is your webshop supplying abroad? Make the most of the new VAT rules.
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.
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.
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.
but you can also order our e-book for international webshops.
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.
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.
Contact our expert directly or send us an offer request!