How to use fulfilment centres with OSS and IOSS EU VAT special schemes?

Fulfilment centres create business efficiencies but at the same time increase operative complications significantly. EAS automates all sales side reporting, regardless of operations.

Fulfilment centres / 3PLs are referred to often as FBAs despite that being the name for Amazon fulfilment centres. They handle the logistics from warehousing to picking and packing and logistics. Since they are focused on doing only that, they can save you time and money.

Regardless of who is providing the services, storage of your goods in a country obligates you to have either VAT registration, fixed establishment or company registration in that country. Depending on the country and where your company is registered in, you might also require a fiscal representative. Since the fiscal representative exposes themselves to risks, they expect to be compensated for it. Look for a partner who can provide additional services to you also, such as basic accounting. 

VAT registration or more significant registration will require you to arrange for at least basic cost side accounting. The paid VAT can be deducted from VATs payable. If the VATs paid exceed the VAT payable, it is possible to claim the VAT back. 

IOSS scheme applies to deliveries from outside of the EU to EU. The scheme can be used by EU and non-EU companies, a fulfilment centre in the EU does not render IOSS unapplicable. The country of registration for both schemes should be either 1st where the company is registered, 2nd where, if they have, a fixed establishment, and 3rd where a company is registered.

EAS provides full sales side data. Shipping from country of the fulfilment centre to the same country is considered to be domestic sales in that country or if shipping from outside of EU IOSS. Shipping cross-border intra-EU falls under OSS VAT scheme. Shipping from the country of your company registration to the country where fulfilment centre is also OSS or IOSS if outside of EU . EAS automates all of this, domestic sales data, be it ready for filing OSS or IOSS reports. 

The more complicated the more EAS adds value, just get in touch, we make your cross-border sales easy! 

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