The Wonderland of OSS – How to pay and report OSS obligations (Part 4)
In the previous part of The Wonderland of OSS, we discussed the basis for determining late fees and sanctions. This time, you will find guidance on how to successfully fulfill your OSS obligations, always on time.
Here are the four best rules to remember when paying and reporting OSS obligations:
1. Register for OSS
Before you can pay and report your OSS, you must register in the system. OSS Registration can be done from the website of the tax authority of the Member State where the company is established (the Member State of identification). When paying VAT under the special scheme, it is always a good idea to check which is the Member State of identification and which is the Member State of consumption (you can check these concepts here)
In principle, the Member State of identification for Finnish businesses and vendors is Finland. However, if the Member State of identification is not Finland, taxes are reported and paid according to the Member State where the seller is registered. For example, in Sweden OSS registrants will report and pay their taxes through the Swedish tax authority.
2. Declare your sales and collect VAT
Once you are registered in the OSS, you must always report your sales and collect VAT correctly. You can do this either manually or by using some automated system provided by your e-commerce platform or accounting software.
3. Complete the OSS declaration and pay the tax
OSS return is completed in the Tax Administration’s MyTax service and it must be submitted by the end of the month for the month in which the sale took place. You can check the due dates for the different systems in the table below.
Special scheme | Date of declaration and payment |
Union scheme and non-Union scheme | The tax period of the Union scheme and the non-Union scheme is a quarter. Report and pay VAT quarterly as follows:
Note: It may take several days for the payment to be transferred to the Tax Administration’s account. Pay taxes on time, e.g. when reporting sales from July to September, report and pay taxes on time so that both the report and the payment reach the Tax Administration no later than by October 31. |
Import system | Under the import system, the tax period is a calendar month. Report and pay VAT monthly so that both the report and the payment reach the Tax Administration by the last day of the month following the tax period. Note: It may take several days for the payment to be transferred to the Tax Administration’s account. Pay taxes on time. For example, when reporting sales in July, report and pay the tax in time so that both the report and the payment reach the Tax Administration by August 31. |
To fill out the report, you need information about sales, the amount of VAT and other business-related information. Once the declaration is completed, you must pay the tax accordingly. The tax must also be paid by the end of the month following the month of sale.
When you pay OSS taxes through the Finnish Tax Administration, the reference number will be the reference number of the OSS report.
The declaration reference number is important so that the Member State of identification can forward the payment to the Member State of consumption. If another reference number has been lost during the payment and the company is registered with OSS in Finland, the payment must be made again and the Tax Administration must be contacted to return the incorrect payment.
4. You must keep all documents related to sales and OSS taxes.
These documents include sales invoices, copies of receipts and OSS declarations. Keep these documents for at least ten years.
If the OSS declaration needs to be corrected and there are fewer sales, the overpayment of tax is returned from the Member State of consumption. If the Member State of identification is Finland, the Tax Administration will forward the information and the VAT paid under the OSS to the Member State of consumption, which means that it is not refundable by the Tax Administration. The Member State of consumption is then responsible for questions related to refunds.
In the event of a loss related to reporting and an overpayment of tax, the tax authority of the Member State of identification can be contacted. For example, The Finnish Tax Administration helps and provides instructions to resolve the situation via the Payment Service number.
As mentioned in the previous blog of sanctions and penalties, it is crucial to comply with the tax rules in order to avoid possible sanctions and penalties.
If you are having challenges with these issues and need further advice, feel free to contact us!
Photo by Kelly Sikkema on Unsplash
