Start the VAT trail with the order
OSS and IOSS simplify reporting, but customer location, product origin and the role of a platform still determine which sales belong in which scheme. Records should connect the order, delivery country, VAT rate, payment and any later refund. A payment provider’s total alone is insufficient.
Reconcile gross sales with platform settlements
A platform may deduct fees and refunds before paying the seller. The bank receipt is therefore not necessarily revenue. Establish whether the platform has its own VAT responsibility or merely intermediates, then reconcile gross sales, charges, VAT and payouts.
Review new stock locations before trading
Stock held in another country can create obligations that OSS does not replace. Finance should know about a new warehouse or sales route before the first transaction. Test one normal sale and one return through ordering, invoicing, payment and reporting, including the general ledger. Exceptions such as business customers or unusual delivery addresses need their own checks.
Source and background: Europese Commissie – VAT e-commerce five years.
