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OSS and IOSS Returns
OSS and IOSS returns in Ireland streamline VAT reporting for businesses supplying goods and services to private customers in the EU and/or importing goods from outside the EU.
Introduced in July 2021 the OSS and IOSS schemes can help businesses simplify their VAT obligations, reduce administrative costs, and improve compliance with EU VAT regulations. These systems are particularly beneficial for e-commerce businesses and digital service providers as they a seamless and efficient VAT process across the EU.
One Stop Shop (OSS) Returns
If a business is providing distance sales of goods (supplies of goods to a private customer based in another EU country where the supplier is responsible for the delivery) in excess of €10,000 per annum then rather than register for and charge local VAT in every EU country where they make these supplies, they can instead register in just one EU country and report the VAT due on these sales.
OSS returns are required once a quarter and must be filed on ROS in addition to your domestic Irish VAT returns once you are registered.
Import One Stop Shop (IOSS) Returns
VAT is due on all goods imported into the EU regardless of value. Prior to 01 July 2021 there had been relief for low-value goods worth less than €22.
The IOSS will allow businesses to report VAT on distance sales of low value goods imported from outside of the EU. Low-value goods are goods imported in consignments that do not exceed an intrinsic value of €150.
VAT on these sales must then be declared on a monthly IOSS return on ROS.
We can help
Your local TaxAssist Accountant can advise you on how to register for these schemes and assist you with preparing the returns and filing them on time with Revenue. Contact us today.
Frequently Asked Questions
If a business's turnover exceeds €80,000 (for businesses supplying goods) or €40,000 (for businesses supplying services only) it must register for VAT.
Budget 2025 announced a change to the VAT thresholds. For those selling products the new cut off point is €85,000 and for those delivering services it is €42,500. The new thresholds come into effect from 01 January 2025.
A VAT Registration Number is mandatory for businesses exceeding the VAT threshold. It uniquely identifies a business for VAT purposes and must be included on all VAT invoices and returns. To obtain a VAT Registration Number, businesses need to apply through Revenue and provide necessary details about their operations.
You need to charge your customers a different rate of VAT depending on that you are selling. The standard rate of VAT is 23% but there are reduced rates for certain goods and services.
- Reduced Rate of 13.5% applies to certain goods and services and building services.
- Second Reduced Rate of 9% applies to items including newspapers, certain printed materials, and admissions to cinemas, theatres, and other cultural events. Also applies to electricity and gas.
- Super Reduced Rate of 4.8% applies specifically to the supply of livestock and greyhounds.
- Zero Rate applies to certain goods and services, such as most food items, children’s clothing and footwear, and certain medical supplies and services.
There are also certain services are exempt from VAT, such as financial, educational, and medical services.
A VAT invoice should include the following details:
- Date of issue
- Unique invoice number
- Supplier's name, address, and VAT registration number
- Customer's name and address
- Description of the goods or services supplied
- Total amount excluding VAT
- VAT rate applied and the total VAT amount
- Total amount including VAT
Date published 25 Jun 2024 | Last updated 25 Jun 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
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