OSS returns: how to report refunds and negative sales

A return or credit note from an earlier quarter goes into a later OSS return as a correction, not as negative sales: for the quarter of the sale and the EU country concerned, within three years. With a negative balance you pay nothing there and the EU country refunds it. Nothing is offset between countries.

Last updated: 27 October 2026

In short

Where and how: In the corrections section, enter quarter, EU country and amount; a correction can be negative.
Deadline: Corrections are possible within three years of the last day of the filing deadline.
Credit: First offset against the same country's tax; the EU country refunds the rest.

Where do you enter a return or credit note?

An already submitted return can generally only be corrected in connection with a following return. The BZSt writes that if a return that has already been submitted must be corrected, the correction is to be made in a subsequent return. The form has a special section where you break the corrections down by tax period and EU member state. The law says the same: corrections made within three years after the last day of the filing deadline are to be declared with a later return, stating the tax period to be corrected (§ 18j (4) sentence 5 UStG).

The European Commission's guide deals with the credit note in a later quarter explicitly: it is handled by a correction to the OSS return for the period in which the supply was declared. For a return in the same quarter in which the sale is declared, the guide says nothing; and the BZSt OSS page names neither cancellations nor returns explicitly (checked on 26 October 2026).

How do you enter it in the BZStOnline portal?

The portal help has a sub-page called "Berichtigung früherer oder späterer Besteuerungszeiträume" (correction of earlier or later tax periods). Here is how to proceed:

Open the page "Liste der Umsätze und Berichtigungen" and click "Weitere Daten hinzufügen".
Choose the country of consumption you want to correct.
Create a new correction entry and fill in the sub-page "Berichtigung früherer oder späterer Besteuerungszeiträume".
Enter the quarter concerned and the corrected tax amount. If previously declared tax amounts have fallen away, you enter 0.00 under "Berichtigter Steuerbetrag".

The form calculates the value under "Erklärter bzw. zu erstattender Steuerbetrag des angegebenen Quartals" itself. According to the help, a negative amount in that column means a refund.

Negative balance: who pays, who refunds?

The EU guide distinguishes two parts of the return. The part for the supplies of the current quarter cannot be negative. The corrections part can be negative, and with it the balance for a single EU country. The total across all countries cannot be negative.

For every country, the tax of the current quarter and the corrections are set off against each other:

Balance above zero: you pay this amount.
Balance zero: you pay nothing for this country.
Balance below zero: you overpaid; the EU country refunds the amount.

A negative amount for one country is never offset against tax you owe to other countries.

Example: two countries, two balances

The BZSt works through a simplified example. A trader declares for Q4 2021 tax of 100 euro for country X and 20 euro for country Y. In the same return, for Q3 2021 the trader declares correction amounts of minus 30 euro for X and minus 80 euro for Y.

Country	Tax current quarter	Correction earlier quarter	Result
X	100 euro	minus 30 euro	70 euro to pay
Y	20 euro	minus 80 euro	60 euro refund

The trader pays 70 euro and has a refund claim of 60 euro against country Y. The 60 euro from Y do not reduce the 70 euro for X.

Who refunds, and when?

A credit that remains after offsetting must be refunded to you by the EU country concerned (BZSt). The European Commission recommends refunding overpayments within 30 days of the decision to agree to the correction; this is not binding, because countries decide under their national law. A country can check a correction; if it agrees, it pays you directly or sets the amount off against other debts you owe that country, if its law allows this.

What applies after three years or after leaving the OSS?

After three years: according to the BZStOnline portal help, you can correct returns up to three years after the last day of their filing deadline. After that, an EU country may accept corrections under its national rules; then you contact that country directly. That is no longer part of the OSS (EU guide).
After leaving: if you have ended participation and have already filed the return for the last quarter, you declare necessary corrections directly in the EU countries concerned (BZSt). On leaving: Deregistering from the OSS.
Bad debt: if a customer does not pay and the country of consumption allows a reduction, you correct the amount in a later OSS return like any other correction. The country can check the correction (EU guide).

Which mistakes come up most often?

Entering a return as negative sales in the current quarter. The sales part cannot be negative; returns from earlier quarters belong in the corrections part.
Stating the wrong period. The correction refers to the quarter in which you declared the sale.
Offsetting a minus against the payment for another country. That is not possible; countries are calculated separately.
Sending the return a second time. A submitted return can generally only be corrected with a following return.
Missing the three years. After that a correction no longer goes through the OSS.
Looking for the refund at the BZSt. The EU country concerned refunds.

How VAT GPT helps

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The same OSS return cannot be submitted again for the same period. Corrections can go into your next quarterly return; VAT GPT points this out after the submission. You register for the OSS in the BZStOnline portal. 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

How do I report a return in the OSS? As a correction in a later OSS return, for the quarter and the country in which you declared the sale.

Can an OSS return be negative? The part for the sales of the quarter cannot. The corrections can be negative, and with them the balance for a single country. The total across all countries cannot be negative (EU guide).

Who refunds me a credit? The EU country concerned. The BZSt first offsets it against the tax declared for the same country; the member state refunds any remainder.

Can I offset a minus from one country against the tax for another country? No. A negative amount for one country is never offset against the tax for other countries.

How long can I correct an OSS return? Within three years after the last day of the filing deadline.

What about a return in the same quarter? The EU guide covers a credit note in a later quarter; it says nothing about the same quarter. If in doubt, ask the BZSt or your tax adviser.

What do I do after leaving the OSS? If you have already filed the return for your last quarter, you declare corrections directly in the EU countries concerned.