The European wine industry is undergoing an exciting revolution thanks to the introduction of the One-Stop-Shop (OSS). This tax reform, implemented from July 2021, considerably simplifies administrative and tax procedures for wine producers wishing to deliver directly to individuals in other European Union countries, whether through e-commerce or wine tourism. In this article, we take a closer look at what the One-Stop-Shop (OSS) is and the promising prospects it offers European wine producers.
The One-stop shop is a system for declaring and paying value-added tax (VAT) on sales of goods and services between businesses and private individuals within the European Union. Prior to the introduction of the One-stop shop, wine producers were faced with complex regulations and heavy administrative burdens when selling and delivering their products to consumers in other EU member states.
With One-stop shop, wine producers can file a single VAT return for all their cross-border deliveries to European consumers. This simplified system makes it easier for producers to comply with tax regulations in each destination country without having to register for VAT in every member state where they make sales.
The one-stop-shop allows companies making distance sales (e-commerce) or providing services to individuals in other EU countries to pay VAT in their country of establishment, instead of registering for VAT in each destination country.
VAT declaration and payment
Companies must voluntarily register with their national tax authorities to use the One-stop shop. Once registered, they can declare and pay VAT due on cross-border sales through a single declaration that covers all operations carried out in other EU countries.
10,000 € sales threshold
The €10,000 threshold is a key measure for the operation of the One-stop-shop. Until distance selling or service provision sales reach €10,000 in the current calendar year, companies can choose to charge VAT in their country of origin;
- Up to €10,000 in sales. Where sales have not reached €10,000, sales to private individuals in other Member States are subject to the VAT of the seller's country, as was the case before the reform of the One-stop-shop.
- Au-delà de 10 000 € de chiffre d'affaires. As soon as sales exceed €10,000 in a calendar year, the applicable VAT regime changes; The company must then apply the VAT of the country of destination to all subsequent distance sales made in that Member State;
Companies registered with the One-stop-shop must file their VAT returns at specific intervals. They can choose between monthly, quarterly or annual declarations, depending on their preference and the volume of their cross-border sales.
What are the benefits for producers?
- Administrative simplification. The one-stop-shop eliminates the need to register separately for VAT in each destination country. This considerably reduces administrative formalities and tax compliance costs.
- Gain de temps et d'argent. Thanks to this one-stop shop, wine producers can concentrate more on their core business. They can then save valuable resources by avoiding the need to process numerous separate VAT declarations.
- Meilleure expérience client. The One-stop-shop facilitates cross-border sales by enabling producers to offer transparent prices. As a result, there are no surprises for European customers, enhancing the online shopping experience.
- European market development: By reducing administrative barriers, the one-stop-shop encourages the growth of cross-border e-commerce. This gives wine producers access to a wider customer base throughout Europe.
Prospects for e-commerce and wine tourism
- Expansion of online sales. The Guichet Unique facilitates online wine sales to European consumers. It opens up new opportunities for wine producers to reach distant markets without the burden of complex tax regulations.
- Development of wine tourism. The One-stop-shop also makes wine tourism more accessible to European travelers. Wine producers can now sell their products directly to foreign visitors in their wineries, simplifying the sales and taxation process.
- Improved competitiveness. For small wine producers, the One-stop-shop can be a major asset. In fact, it enables us to compete with the big companies on the European market. In this way, they can offer competitive rates and a hassle-free customer experience.
In conclusion, this new system facilitates cross-border sales to European consumers. Whether through e-commerce or wine tourism. The €10,000 sales threshold gives small businesses a degree of flexibility. Thanks to this tax reform, producers can now concentrate on producing and marketing their wines. The future of the European wine industry looks bright thanks to the One-stop-shop!