The new European Union tax regulations, with the OSS procedure, establish two ways to apply VAT for companies selling products online within the European Union:
- if the sale threshold is under €10,000 per year, it is possible to apply the store registered country’s VAT rules;
- if the sale threshold is above €10,000 per year, the VAT applied will be the one of the customer’s country.
To apply the One-Stop Shop procedure, enable the option Enable OSS procedure that you can find in the General tab.
To track the threshold of the current year, enable the option Monitor threshold for the current year.
You can also choose to view the OSS report by orders to which the OSS has been applied or by country.
For more details about the OSS rules, please, refer to the official website of the European Unione here.