Single window system in Andorra


single window or One-Stop Shop (OSS)

The one-stop-shop payment system has been in place since July 1, 2021. This new alternative has come with the aim of reducing the inconvenience with taxation. Specifically in the area of ​​e-commerce, where various uncertainties have been encountered.

The idea of ​​this new payment scheme is the unification of a tax system. Which will bring multiple benefits to all taxpayers who were affected by the previous regulation.

In addition to unifying the regulations and payment amounts, the place to do it is also provided. Because the conditions are favorable for those who distribute their products to other members of the European Union. Keep reading and know everything you need to know along with the advantages it offers.

One-stop-shop for payment basics

This new modality will improve and facilitate tax payments to those who operate in the European Union. To understand it well, it is necessary to separate its fundamental aspects and explain them separately.

The first of these is the minimum amount to make the payment of taxes. When unifying the system, it has been established that it must exceed € 10,000 net in sales. In addition, the company must register in a single member state of the European Union. For this there are two cases:

  • Your place of registration will be the registered office of the company, if it is located in a Member State.
  • Otherwise, you must register in the Member State from where the deliveries are made.

According to this, all businessmen with residences in Andorra can register and later pay in a single state. Remembering that this applies to sales generated from e-commerce.

At the time of making the tax payments, they will be made only in the registered state. The one-stop-shop system used will be responsible for distributing the amounts to the corresponding countries. When declaring these, you must have a record of each delivery made in the stipulated time.

The established time of each declared period will be three months. You will have a full month to make the payment of the sales for that period. Therefore, if it runs from April to June, you will have until July to pay.

Background to the single payment window

Before starting this new tax tool, another was used. It was the mini one-stop-shop for payment, also known as MOSS. This is responsible for performing the same procedure, only applied to services electronically.

This has been a very useful way to improve the tax system. Because it has managed to unify the declaration in a single place and from there distribute the corresponding amounts.

In addition, this will avoid having to obtain the NIF and corresponding documents in each State. Thus reducing administrative costs when paying taxes. Because it will not be necessary to register the company in different member countries of the European Union.

But it is necessary to emphasize that this applies in case of making shipments from the State in which it is registered. Otherwise, if it is run from a warehouse located in another country, it is treated differently. If so, the declaration would have to be made separately for the sales included therein.

Previously, it was taxed in the State where the service provider was located. This regardless of the consumer’s location. That has changed, it is now considered that the property must be taxed at the destination.

The latter corresponds to the fact that the service is considered provided when it reaches the final consumer. Looking at it this way, it is qualified that the property will pay taxes when it is at its destination.

Who is this one-stop-shop for payment aimed at?

This new tax regime has a specific audience, who will benefit from its use. Mainly companies based in Andorra that carry out distance sales to another country. This as long as you are a member of the European Union.

All SMEs dedicated to e-commerce will have efficient tax legislation. Because they are given ease at the time of registration. In addition, it is no longer necessary to register in each member country to declare taxes.

Advantages offered by the One-Stop Shop (OSS)

The purpose of this new payment regime in Andorra is to unify the criteria regarding the taxation of taxes. Specifically in the face of the situation of service providers with clients throughout the European Union. Which can bring many advantages when making your statements:

  • VAT payment is centralized in a single entity. Thus generating greater ease and comfort for companies.
  • Expenses are also reduced by not having to register with the tax authorities of the countries separately.
  • It is not necessary to declare local sales at the window.
  • It is no longer necessary to issue invoices for shipments declared through the single window system.
  • There is a period of up to 30 days to make the payment corresponding to the declared period.

Considerations to take into account about the OSS

This law brings many positive points for sellers and providers of digital goods. As well as delivery service providers. But like any new regulation, some considerations must be taken into account. Because there are some features to highlight:

  • The amount from which the payment of this type of tax must be made will be € 10,000. In this way the old values ​​used in each State are without effect.
  • The inventory must be updated with the taxes applied in each State. It is complex at first, but the task can be automated.
  • Sales made in the same state must be declared separately. So two records will be kept, one for local billing and one that will be done through the window.
  • This regulation will be imposed for e-commerce and digital services. So it must be taken into account when making sales and exceeding the € 10,000 limit.
  • Declarations before the single payment window must be submitted on a quarterly basis.
  • If the limit is exceeded, taxes must be paid in each State where deliveries have been made. Even in the case of having been only one.
  • The use of the system is completely voluntary. Therefore, no company is obliged to use it.

Categories : Andorra Legislation

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