What is iOSS and OSS accounting for e-commerce business?

If you’ve decided to start an e-commerce business and sell across the European Union, the special iOSS and OSS schemes can be extremely beneficial for your operations. It’s important to understand how these systems work — this is the only way to optimize your tax burden and reduce unnecessary accounting tasks.

iOSS (Import One-Stop Shop) and OSS (One-Stop Shop) accounting significantly simplify business operations for many online entrepreneurs in Estonia and other EU countries. Once you understand how these schemes work, you’ll realize they are special VAT regimes that truly help your business grow and expand — without spending time learning tax rules of each EU country individually.

What Are OSS and iOSS?

OSS (One-Stop Shop) is a system designed to simplify VAT reporting for sellers engaged in cross-border distance sales within the EU. With OSS, businesses can register in just one EU member state and file a single VAT return for all their EU sales through a single digital portal. This saves considerable time and eliminates the need to register for VAT in every country where goods are delivered.

IOSS (Import One-Stop Shop) is a simplified VAT scheme for importing low-value goods sold remotely to consumers in the European Union. If you sell goods from Estonia to other EU countries and the total value including shipping does not exceed €150, you can use iOSS. This system is especially suitable for B2C (business-to-consumer) models.

Benefits of Using iOSS and OSS

The main advantage of using OSS and iOSS is the ability to centrally manage tax obligations. For business owners, this means:

• Simplified accounting and reduced administrative burden.
• Lower time and financial costs associated with VAT compliance.
• More efficient and timely management of tax obligations.
• Faster delivery of goods to customers thanks to quicker VAT payment and smoother customs clearance.
• Ensured compliance with all current EU tax laws and regulations.

Managing accounting for an e-commerce business using iOSS and OSS requires specific knowledge and experience. It’s essential to correctly calculate VAT for each transaction, accurately complete the returns, and submit them on time. Any mistakes may result in financial penalties and other legal issues.

GTPartner specializes in this type of accounting and is ready to assist you. If you’re looking to optimize the tax processes of your e-commerce business in Europe, our experts are here to help. We will give you access to the OSS/iOSS systems, register your VAT number, and our accountants will ensure that all reports are submitted on time and fully compliant with current regulations.

Book a free consultation below, and we’ll take care of the paperwork while you focus on growing your business!