The EU VAT One-Stop-Shop (OSS) lets businesses declare VAT on cross-border sales to EU consumers through one quarterly return in one member state, instead of registering in every country. It has three schemes, Union OSS, non-Union OSS and Import OSS (IOSS) for consignments up to €150, and has been in place since 1 July 2021.
Before July 2021, selling online across the EU could mean VAT registrations in many countries. The One-Stop-Shop changed that.
The three OSS schemes
| Scheme | Who uses it | What it covers |
|---|---|---|
| Union OSS | EU-established businesses (and some non-EU sellers holding goods in the EU) | Intra-EU distance sales of goods and B2C services in other member states |
| Non-Union OSS | Businesses not established in the EU | B2C services to EU consumers |
| Import OSS (IOSS) | Sellers and marketplaces importing low-value goods | Consignments of goods up to €150 sold to EU consumers |
How it works
- Register for OSS in one member state (your identification state)
- Charge VAT at the customer's country rate on each sale
- File one OSS return each quarter (IOSS returns are monthly)
- Pay the total to your identification state, which distributes it to the other countries
- Keep records of each sale for ten years
What OSS doesn't cover
- B2B sales (generally reverse charge)
- Domestic sales in countries where you hold stock: these may still need a local VAT registration
- Goods over €150 imported into the EU (IOSS does not apply)
Tips for UK, US and Canadian sellers
- After Brexit, UK businesses are treated as non-EU for OSS purposes
- Make sure your checkout shows VAT-inclusive prices to EU consumers
- Use IOSS for low-value parcels so customers aren't hit with import VAT on delivery
How Avore Solutions can help
We handle EU VAT and OSS registration and returns and set up VAT-correct ecommerce checkouts. Book a VAT review.
Frequently asked questions
What is the €10,000 OSS threshold?
EU-established businesses can charge their home country's VAT on cross-border B2C sales until their total EU cross-border sales exceed €10,000 a year. Above that, VAT is due at the customer's rate, and OSS is the simplest way to report it.
Can non-EU businesses use OSS?
Yes. Non-EU businesses supplying B2C services use the non-Union OSS. Those selling low-value imported goods can use IOSS, usually through an EU intermediary.
Does OSS cover B2B sales?
No. OSS is for business-to-consumer supplies. Cross-border B2B sales generally fall under the reverse charge and are reported differently.