1. What goes into the OSS Declaration
The OSS declaration is used for B2C sales to EU consumers when your total cross-border sales exceed €10,000 per year.
The OSS Declaration includes:
-All distance sales of goods or services to private consumers in other EU member states
-The value of sales per EU country
-The VAT charged according to the buyer’s country VAT rate
-Key point: VAT collected under OSS is reported and paid via OSS, not in your Cyprus domestic VAT return.
2. What goes into the Cyprus Domestic VAT Return
Your Cyprus VAT return includes:
-All domestic sales and purchases subject to Cyprus VAT
-Imports and other Cyprus-based taxable transactions
-Excluded: Cross-border B2C sales reported under OSS, because VAT is declared in the buyer’s country via OSS
-Note: Cross-border B2B sales to VAT-registered businesses in other EU countries are generally zero-rated for Cyprus VAT and not included in OSS.
3. €10,000 Threshold Rule
If your total EU B2C distance sales do not exceed €10,000 per year, you may:
-Charge Cyprus VAT on these sales instead of using OSS
-Report them in your Cyprus VAT return
Once your sales exceed €10,000, OSS registration is mandatory, and all subsequent B2C sales to EU consumers are reported through OSS, applying the buyer’s country VAT rate.
