The One-Stop-Shop (OSS) procedure was developed to facilitate VAT compliance in cross-border trade. Nevertheless, many online retailers make avoidable mistakes that cause high costs and additional administrative work. In this article, we take a look at the most common pitfalls in the OSS procedure and provide valuable tips on how you can successfully avoid them.
The 7 stumbling blocks in the OSS process
1. rejected OSS notifications
A common problem is rejected OSS notifications due to incorrect or incomplete data. The main causes include:
- Incorrect or missing tax codes of the destination countries
- Inaccuracies in the disclosure of revenue subject to different VAT rates
- Warehouse locations not taken into account, e.g. by Amazon FBA
Practical example: A JTL customer who sells on Amazon uses the CEE program and stores goods in Poland and the Czech Republic. He forgets to specify these warehouse locations in the OSS declaration. The declaration is rejected – this leads to delays and additional work.
Tip: Use digital tools that consolidate your tax data and check it for completeness. Automated data reconciliation minimizes errors.
2. unallocated payments
OSS payments must be clearly assigned to the respective declarations. Unclear allocations lead to queries from the authorities or even to the remittance of the VAT paid.
Common error: In the case of transfers to the BZSt, the reason for payment is selected incorrectly, which prevents correct allocation.
Tip: Always use the individual reference number assigned by the BZSt as the reason for payment. This is assigned immediately after logging in to the OSS procedure and can be found in your mailbox within the BZSt.
3. double taxation due to incorrect procedures
One serious error is double taxation due to the improper separation of OSS declarations and local VAT declarations.
Practical example: A JTL merchant taxes transactions from a Polish warehouse twice – once via the OSS procedure and once via the local declaration in Germany. The result: unnecessary payments and increased administrative work.
Tip: Work closely with tax experts and rely on solutions such as those from countX to avoid such errors. The German tax consultant also needs to understand whether goods are moving from Poland to Germany or within Germany. The mere invoice data record is not enough.
You can find more on this topic in the countX blog.
4. missing stock data from platforms
Especially with Amazon FBA or other logistics services, cross-border storage is often not correctly included in the OSS declaration. Warehouse locations must be reported to the Federal Central Tax Office (BOP).
Tip: Keep a detailed overview of your warehouse locations and integrate this data into your tax strategy.
5. late notifications
OSS reports are due on a quarterly basis. Many traders only submit their returns at the last minute, thereby increasing the risk of errors. There is also a risk that payments received by the BZSt on time will arrive late at the individual tax offices in the EU. Finland, for example, responds promptly with reminders and fines even if payments are one day late. The €80 fine is bearable, but the additional expense is annoying.
Tip: Plan sufficient buffer times and use automated systems to prepare your data in good time.
6 Incorrect calculation of delivery thresholds
The EU-wide delivery threshold of €10,000 can easily be calculated incorrectly due to inaccurate totaling of sales.
Tip: Use accounting systems that consolidate your sales from different sales channels and ensure a correct calculation.
7. manual processes and susceptibility to errors
Without automation, the error rate increases. Manually merging data from platforms such as Amazon or PayPal is time-consuming and risky.
Tip: Automate your processes with suitable tools to minimize sources of error.
The risk of OSS errors
Errors in the OSS procedure can remain undetected for years and only become apparent during a tax audit. This often leads to subsequent declarations, additional payments and additional administrative work. This makes it all the more important to ensure clean and efficient processing right from the start.
OSS powered by countX - Your solution in the JTL ecosystem
For JTL customers, the free OSS powered by countX solution offers optimal support in the JTL Pro and JTL Enterprise tariffs.
- In-house solution of the JTL Group – benefits from cross-group processes in customer service
- Seamless JTL-Wawi integration of multichannel data in real time
- Two months free of charge and free change
- Minimizes sources of error and also validates the JTL tax setting (check whether 25.5% is selected as the standard tax rate for Finland and 22% for Estonia)
The outgoing invoice book in the countX customer portal allows you and your tax advisor to easily filter for OSS transactions.
With automated tools like countX, you can master the OSS process – and create more room for your eCommerce growth.
Are you already a JTL customer? Then book the OSS powered by countX solution now via the JTL-Customer Centre!
