Registering for VAT OSS (“One Stop Shop”)

• Serves consumers in the EU
• Offers digital products
• Sells directly to customers

However, there's a threshold to consider. Your annual sales to the EU must exceed €10,000 for registration to be mandatory. Below this threshold, you should treat your EU customers as if they were based in the UK and charge VAT at the standard rate of 20% (provided you are VAT registered).

Under the VAT OSS rules, businesses must charge VAT at the local rate applicable to where the customer is located. To streamline this process, businesses can remit the VAT collected to one EU nation, which will then distribute it to the other member states.

For app developers, it's important to note that sales facilitated through platforms like Apple's App Store or the Google Play store are not considered direct sales to the consumer. Typically, any VAT implications arising from these transactions are handled by the platforms themselves, albeit at a cost.

Given the UK's departure from the EU, businesses must now register for VAT OSS in an EU country under the 'non-union scheme.' We commonly recommend registering in Ireland due to its English-speaking environment and excellent online support.

Here's the link to register for VAT OSS in Ireland.

Once registered, you'll need to submit returns quarterly according to the following schedule:

• Quarter ending 31 March, due by 30 April
• Quarter ending 30 June, due by 31 July
• Quarter ending 30 September, due by 31 October
• Quarter ending 31 December, due by 31 January

• Name and address
• Electronic addresses, including website addresses
• National tax number issued by the relevant authorities in your country of establishment (if available)
• Date on which EU sales commenced
• Any previous registration details
• A statement confirming that you haven't established a business in the Community or have a fixed establishment in the Community