EU OSS VAT Guide — One Stop Shop Registration, Thresholds & Filing (2026)
The EU One Stop Shop (OSS) scheme — introduced 1 July 2021 — lets e-commerce sellers and digital service providers register for VAT once in their home country instead of separately in every EU country where they have customers. If your cross-border B2C sales exceed €10,000 per year, you must either use OSS or register individually in each destination country. This guide covers all three OSS schemes, the threshold rules, how to register, quarterly filing, and the critical differences between OSS and IOSS.
Background: the July 2021 EU VAT e-commerce reform
Before July 2021, cross-border e-commerce in the EU was governed by separate country-level distance selling thresholds (€35,000–€100,000 per country). Sellers had to track sales per country and register in each one they exceeded. The system was widely abused — particularly by non-EU sellers using VAT-free imports and platforms avoiding tax.
The 2021 reform abolished the country-level distance selling thresholds and replaced them with a single EU-wide threshold of €10,000 covering all 27 member states combined. It also extended OSS beyond digital services to cover all cross-border B2C goods sales and introduced the IOSS for low-value imported goods under €150.
The three OSS schemes at a glance
| Scheme | Who uses it | What it covers | Register where? |
|---|---|---|---|
| Union OSS | EU-established businesses | Cross-border B2C goods (already in EU) + digital/TBE services to EU customers | Your own EU member state |
| Non-Union OSS | Non-EU businesses (no EU establishment) | Digital/TBE services to EU private customers | Any EU member state of your choice |
| IOSS (Import OSS) | Any seller importing goods from outside the EU | Goods imported with intrinsic value ≤ €150, sold B2C | Your own EU state (EU sellers); any EU state + fiscal representative (non-EU sellers) |
The €10,000 threshold — what counts and what doesn't
The €10,000 annual threshold applies to the combined total of:
- Cross-border B2C sales of goods dispatched from a single EU member state to customers in other EU countries
- Cross-border B2C supplies of digital/TBE services (telecommunications, broadcasting, electronically supplied services)
What does NOT count towards the threshold:
- Sales to customers in your own member state
- B2B sales to VAT-registered businesses (reverse charge applies instead)
- Sales of goods imported from outside the EU (these fall under IOSS, not OSS)
- Sales via online marketplaces where the platform is deemed the supplier
How to register for EU OSS — step by step
- Check whether you exceed the €10,000 threshold. Add up all cross-border B2C sales of goods and digital/TBE services to EU customers in the current and previous calendar year. If the total exceeds €10,000, OSS registration is required.
- Choose the right scheme. EU-established sellers use Union OSS. Non-EU sellers supplying digital/TBE services use Non-Union OSS. For imported goods under €150, use IOSS.
- Register via your home country's tax portal. In most EU countries this is an online portal (e.g. BZSt Online-Portal in Germany, impots.gouv.fr in France, Tax Online in the Netherlands). You receive an OSS registration number distinct from your domestic VAT number.
- Set up destination-country VAT rates. Once registered, you must charge VAT at the rate applicable in each customer's EU country — not your own rate. Update your e-commerce platform or ERP accordingly. See the EU VAT rates table for all 27 countries.
- File quarterly and pay. Submit your OSS return by the last day of the month following each calendar quarter. Pay the total in a single payment to your home country's tax authority — they distribute to destination countries.
OSS return — what to report
Each quarterly OSS return must show, per EU destination country:
- Total net sales value (excluding VAT)
- Applicable VAT rate(s)
- VAT amount collected
If you sell to customers in 10 EU countries, your return has 10 country sections. If you sell goods at multiple VAT rates within a single country (e.g. standard goods and reduced-rate books in France), each rate is a separate line.
OSS return deadlines:
| Quarter | Period covered | Filing & payment deadline |
|---|---|---|
| Q1 | 1 Jan – 31 Mar | 30 April |
| Q2 | 1 Apr – 30 Jun | 31 July |
| Q3 | 1 Jul – 30 Sep | 31 October |
| Q4 | 1 Oct – 31 Dec | 31 January |
Late filing or late payment results in interest charges and may trigger exclusion from OSS for a period.
OSS vs IOSS — key differences
| OSS (Union) | IOSS | |
|---|---|---|
| Goods location before sale | Already inside the EU | Outside the EU at time of sale |
| Goods value limit | No limit | ≤ €150 intrinsic value |
| When is VAT collected? | At checkout | At checkout (before customs) |
| Customs clearance impact | Not applicable (goods already in EU) | Goods cleared without additional VAT at border when IOSS number presented |
| Who can register? | EU-established businesses | Any seller; non-EU sellers need fiscal representative in most countries |
| Return frequency | Quarterly | Monthly |
| Input VAT reclaim via scheme? | No | No |
Marketplaces and the deemed supplier rule
If you sell through an online marketplace (Amazon, eBay, Etsy, etc.) and either (a) you are a non-EU seller or (b) you sell imported goods under €150, the marketplace is deemed the supplier for VAT purposes. This means:
- The marketplace handles the VAT collection, OSS/IOSS registration and filing on those transactions
- You receive the payment net of VAT from the platform
- Your invoice to the marketplace is treated as a B2B supply (zero-rated under reverse charge)
This does not remove your obligation to be VAT-registered — only your obligation to account for VAT on those specific marketplace-facilitated sales.
Check VAT rates for OSS filing
Under OSS, you must charge the correct VAT rate for each of your customers' EU countries. Use the EU VAT Calculator to verify rates per country and transaction type.
Practical example: German e-commerce seller using OSS
Situation: A German online retailer selling clothing ships €180,000 of goods per year to customers in France, Italy, Spain, Netherlands, Poland, and Sweden. They also sell €15,000 of e-books per year across the EU.
Threshold check: Total cross-border B2C sales = €195,000 → well above €10,000. OSS registration required.
Registration: Registers for Union OSS via the German BZSt Online-Portal (ELSTER/OSS). Receives a German OSS ID number.
VAT rates applied per country: France 20%, Italy 22%, Spain 21%, Netherlands 21%, Poland 23%, Sweden 25%. For e-books: France 5.5%, Italy 4%, Spain 4%, Netherlands 9%, Poland 5%, Sweden 6%.
Q1 return: Files by 30 April showing net sales per country per rate. Pays total VAT in one bank transfer to the German tax authority (Bundeszentralamt für Steuern). Germany distributes to France, Italy, etc.
Result: Full EU VAT compliance via one quarterly filing. No registrations in France, Italy, Spain, Netherlands, Poland, or Sweden.
Frequently asked questions
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What is the EU OSS threshold?
The EU-wide OSS threshold is €10,000 per calendar year in cross-border B2C sales of goods and digital/TBE services to EU customers. This threshold covers all 27 EU member states combined — it is not per country. Once you exceed €10,000, you must either register for OSS or register for VAT in each destination country individually.
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Do I have to use OSS, or can I register in each country instead?
OSS is optional — you can choose to register for VAT in each individual EU country where you have sales instead. However, OSS is significantly simpler for most sellers: one registration, one quarterly return, one payment. Individual country registrations mean separate filings, local accountants, and different filing deadlines per country. Most e-commerce sellers exceeding the threshold use OSS.
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Can I reclaim input VAT through OSS?
No. OSS is for remitting output VAT only. You cannot reclaim input VAT (VAT on your purchases) through the OSS return. To recover input VAT incurred in other EU countries, you must use the EU VAT Refund procedure (for EU businesses) or the 13th Directive refund procedure (for non-EU businesses).
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What is the difference between OSS and IOSS?
OSS applies to EU-established sellers making cross-border sales of goods already inside the EU, and to non-EU sellers providing digital/TBE services. IOSS is specifically for goods imported from outside the EU with an intrinsic value of €150 or less — it allows sellers to charge and remit the destination-country VAT at point of sale, so goods are released at customs without additional VAT collection.
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Which VAT rate do I charge under OSS?
Under OSS, you must charge VAT at the rate applicable in your customer's EU country — not your own country's rate. For example, if you are a French seller and your customer is in Hungary, you charge 27% Hungarian VAT on that sale. See the EU VAT rates table for all 27 member states.
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Does OSS apply to B2B sales?
No. OSS only applies to B2C (business-to-consumer) sales — sales to private individuals and non-VAT-registered buyers. For cross-border B2B sales between VAT-registered businesses within the EU, the reverse charge mechanism typically applies instead — the seller zero-rates the supply and the buyer self-accounts for VAT in their country.
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How often do I file OSS returns?
OSS VAT returns are filed quarterly — by the end of the month following each calendar quarter (April 30, July 31, October 31, January 31). The return must show sales and VAT collected broken down by destination EU country. There is no annual OSS return — only quarterly filings. Payment is due at the same time as the return.
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What happens if I sell through Amazon or another marketplace?
If you are a non-EU seller, or if you sell imported goods under €150 via a marketplace, the marketplace is typically deemed the supplier for VAT purposes under the 2021 EU rules. The marketplace accounts for VAT on those transactions, not you. However, this only applies to the specific transactions facilitated by the platform — you may still need your own OSS or VAT registrations for other sales.