OSS and input VAT: where to claim deductible VAT

There is no input VAT deduction in the OSS return. You deduct German input VAT in your advance return (§ 15 UStG). Input VAT from another EU country where you have only OSS sales comes back only through its refund procedure (BZSt); if other supplies there require you to register anyway, you claim all of it in its regular return.

Last updated: 27 October 2026

In short

OSS return: It contains identification, sales per EU country by VAT rate, and corrections of earlier periods.
German input VAT: The condition for the deduction is a properly issued invoice.
Refund: The input VAT must relate to the OSS sales; apply to the BZSt for that country (§ 18g UStG).

What is in the OSS return, and what is not?

The BZSt describes the OSS return as follows: identification details (VAT ID and tax period), the supplies covered by the scheme, and corrections of earlier tax periods. Sales are reported separately for each EU member state and broken down by applicable rate. This list leaves no room for input VAT.

That fits what the scheme is: a way to declare and pay VAT on sales to private customers in other EU countries in one place. Input VAT is not offset there.

Where do you deduct German input VAT? As usual in the advance return

Input VAT that German suppliers charge you is deductible under § 15 para. 1 no. 1 UStG: a trader may deduct the VAT legally owed on supplies and services performed for the business by another trader. You need an invoice issued in the proper form. This applies to goods purchased, packaging or software you pay for in Germany.

Under § 15 para. 2 no. 2 UStG the deduction is excluded, among others, for supplies abroad that would be VAT-exempt if made in Germany. Distance sales of goods to private customers would not be exempt but taxable in Germany, so by the wording this exclusion does not hit them. If you have a special case, such as exempt sales alongside your online trade, clear it with a tax adviser.

German input VAT goes into the advance return. What belongs there is covered in Advance VAT return for Amazon sellers.

How do you get foreign input VAT back? The refund procedure

If a supplier in another EU country charges you VAT, for example for a purchase, a warehouse or a service on the spot, the BZSt says:

If you only have OSS sales in that country, you can claim the input VAT only through the input VAT refund procedure.
The input VAT must relate to those OSS sales.
The claim is addressed to the member state where the input VAT was incurred; as a trader established in Germany you submit it electronically to the BZSt (§ 18g UStG).

The input VAT refund procedure lets domestic traders have VAT paid abroad refunded. Private individuals cannot take part.

What applies if you are registered abroad anyway?

The BZSt names a second case. If you make other supplies in that EU country and therefore have to be registered there for VAT anyway, you claim the input VAT there as a whole in the general taxation procedure, that is in that country's regular return. A typical trigger is a warehouse of your own abroad. When a local registration comes on top of the OSS is covered in OSS vs local VAT registration in EU countries: which fits when?.

Which mistakes come up most often?

Trying to deduct foreign input VAT in the OSS return. There is no field for it.
Leaving German input VAT unclaimed because "everything runs through the OSS". It belongs in the advance return.
Not checking the invoice. Without an invoice issued in the proper form there is no deduction.
Filing the refund claim directly abroad. As a trader established in Germany you submit it to the BZSt (§ 18g UStG); it is addressed to the member state where the input VAT was incurred.

How VAT GPT helps

VAT GPT calculates your sales and the OSS return from your data. In three steps:

Upload: You upload your Amazon or eBay CSV reports and your invoices. The AI reads amounts, countries and tax rates.
Check: VAT GPT breaks down the VAT for Germany and the EU (OSS) and calculates the OSS return for all EU countries. You check and confirm.
Send: With VAT GPT Pro, the OSS return goes directly to the Federal Central Tax Office.

Everything is in one place: advance VAT return, annual VAT return, OSS return, EÜR, trade tax and income tax returns. There is Free (basic features, free of charge), Go (30 days free with all Pro features) and Pro (€49 per month or €444 per year, each including VAT). Try for Free Now

Frequently asked questions

Can I deduct input VAT in the OSS return? No. The OSS return contains sales and corrections, not input VAT.

Where do I deduct German input VAT? In the advance VAT return, with a proper invoice.

How do I get input VAT back from another EU country? If you only have OSS sales there, through the input VAT refund procedure: you submit the claim electronically to the BZSt, addressed to the country where the VAT was incurred.

What if I have a warehouse abroad? If you make other supplies there next to the OSS and must be registered anyway, you claim the input VAT in that country's general return.

Do distance sales exclude my input VAT deduction? Not by the wording of § 15 UStG: the exclusion for supplies abroad covers those that would be exempt in Germany.