Did you know that as of July 1, 2021, the European Union (EU) put changes into force to the value added tax (VAT) rules that will affect business-to-consumer (B2C) sellers and marketplaces? These changes will concern e-commerce and retail sellers that make sales via their own web-shops and ship goods to EU consumers from warehouses based in the EU.
Welcoming One-stop-shop (OSS) regime
The EU significantly simplified the VAT reporting by introducing a new reporting system — the OSS regime.
Before the VAT OSS regime, if your company exceeded sales limits in recepient's country, company had to be registered in another EU country to comply with VAT tax. After the introduction of VAT OSS you can settle VAT obligations in your local tax office.
What does OSS regime mean for e-commerce and retail?
One-stop-shop (OSS) regime will replace the obligation to VAT register in every country where sellers are making sales to EU consumers.
In practice: Now you can sign up for OSS, instead of having to register with each of 27 EU countries where you sell goods or services internationally. If your web-shop is based in an EU country, you can register with your home country’s OSS portal. You will remit all the VAT that you have collected to your local tax authority. Your tax authority will distribute on your behalf this VAT revenue to other EU countries where you have been doing sales.
Plug-in-play solution for e-commerce
Avalara AvaTax is one of many systems that could help you with being compliant with new procedure and open sales in every EU country.
Our Frends integration platform offers an easy-to-use plug-and-play connectivity to more than 150 systems including Avalara AvaTax.
You can now advance your retail supply chain automation by connecting to Avalara AvaTax easily by the use of predefined connectors. A simple process can be triggered whenever you receive an international order, and send all required details to Avalara.
The example of an automation flow created within the Frends platform with the Avalara AvaTax connector.
Reducing errors and manual work
In today's retail business consumers are expecting more and more connected services and personalised experiences. With Frends integration platform you can integrate all your systems to make your business processes run smoothly and error-free. You can optimise your supply chain and customer experience at every stage and make your systems talk to each other: ERP, CRM, delivery management solution, accounting system, logistics & inventory management system, digital payment system, or order management system. All done in one place for you information exchange to happen in real-time.
Read more: Frends iPaaS for Retail
Since the VAT OSS procedure has been introduced, you might want to conquer other markets which are now easily available?
Read some of the use cases:
Run machine translations in a day: How to translate your e-commerce platform to 6 different languages in a day.
Increase your sales by keeping your stock data up-to-date: How to manage your retail stock and invenotory and keep the status up-to-date.
How to improve online shopping experience: Real-time Data Aggregation for Order Delivery: How to automate a supply chain
Interested to see how integrations-made-right can drive more sales to your web-shop and make a customer return? Get it touch with our integration team for a free consultation!