What Is the EU VAT One Stop Shop?
The One Stop Shop (OSS) is a voluntary EU VAT scheme that allows businesses to report and pay VAT on cross-border B2C supplies through a single quarterly return filed in their home EU member state, rather than registering for VAT separately in each destination country.
OSS launched on 1 July 2021 as part of the EU's "VAT e-commerce package," replacing and expanding the previous Mini One Stop Shop (MOSS) for digital services. There are three variants:
- Union OSS: for EU-established businesses selling goods and services B2C to consumers in other EU member states
- Non-Union OSS: for non-EU businesses selling digital services B2C to EU consumers
- IOSS (Import One Stop Shop): for businesses importing goods with a value up to €150 from outside the EU, sold directly to EU consumers
This article focuses on the Union OSS, which is the most relevant scheme for EU-based businesses.
Who Qualifies for Union OSS
To register for Union OSS:
- You must be established in an EU member state (your "identification member state")
- You must be making cross-border B2C sales of goods or services to consumers in other EU member states
- Your cross-border B2C sales must exceed €10,000 per calendar year (below this, you may charge your home country VAT)
- You must not be in breach of your VAT obligations in any EU member state
You register with the tax authority of your home country. German businesses register via the Bundeszentralamt für Steuern (BZSt) at ioss.bzst.de. French businesses register via impots.gouv.fr. Dutch businesses use the Dutch Tax Authority (Belastingdienst) portal at belastingdienst.nl/oss.
The €10,000 Threshold in Practice
| Your cross-border B2C sales | VAT treatment |
|---|---|
| Below €10,000 | Charge your home country VAT; report on domestic return |
| Above €10,000 | Charge destination country VAT; must use OSS or separate registrations |
| Exactly at threshold | First year over threshold triggers OSS obligation |
The €10,000 is calculated across all B2C cross-border EU sales combined. A French business selling €8,000 to German consumers and €3,000 to Italian consumers has exceeded the threshold (€11,000 total) and must apply German and Italian VAT rates respectively.
What OSS Covers — and What It Does Not
Covered by Union OSS
- B2C distance sales of goods shipped from your country to consumers in other EU member states
- B2C supplies of services (digital, telecoms, broadcasting, and general services where place of supply is the customer's location)
- The full range of consumer-to-consumer transactions does not apply — OSS is a business tool only
Not Covered by Union OSS
- B2B supplies: If your customer is a VAT-registered business, OSS does not apply. B2B cross-border services fall under the reverse charge mechanism (separate rules, see our B2B services guide).
- Domestic sales: Sales to consumers in your own country remain on your domestic VAT return.
- Goods stored in another EU country: If you hold stock in Germany, sales from that German stock require a German VAT registration, not OSS.
- Imports from outside the EU: These fall under IOSS or require import VAT registration at the port of entry.
- Exempt supplies: Financial services, insurance, medical services — VAT exemptions in destination countries still apply regardless of OSS.
OSS vs Country-by-Country: Direct Comparison
| Factor | OSS | Country-by-country |
|---|---|---|
| Number of VAT returns | 1 quarterly OSS return | 1 return per country (typically quarterly or monthly) |
| Registration required | 1 (home country only) | Up to 27 |
| VAT rates applied | Destination country rate | Destination country rate |
| Filing frequency | Quarterly | Varies by country (some monthly) |
| Compliance cost | Low (1 accountant/filing) | High (local accountants in each country) |
| Cash flow | Quarterly lump payment | Can spread across countries |
| Best for | Businesses selling to many EU countries | Businesses with high volume in 1–3 countries |
When Country-by-Country Registration Is Better
Despite OSS's convenience, there are specific scenarios where separate country registrations make more sense:
High-volume sales in one country with refund claims. OSS does not allow you to offset input VAT from destination countries against the OSS output tax. If you have significant business expenses in, say, Germany (a trade fair, a local supplier, warehouse costs), you cannot recover that input VAT through OSS — you need a German VAT registration to file a German return and claim the refund. Country-by-country registration is worth the cost if your recoverable input VAT in a country exceeds your OSS compliance savings.
Holding stock in multiple EU countries. Amazon FBA sellers using the Pan-European programme necessarily hold stock in fulfilment centres across Germany, France, Italy, Spain, Poland, and the Czech Republic. Sales from locally held stock require local VAT registration regardless of OSS. In this model, OSS provides only marginal simplification.
Reduced rates and country-specific exemptions. Some EU countries apply reduced VAT rates to specific product categories. Groceries in Ireland are zero-rated; books are 5.5% in France and 7% in Germany. If you sell in categories with significant rate variation, a careful analysis of destination-country rates may reveal that your effective VAT burden under OSS differs from what you expected based on standard rates.
How to Register for OSS: Step-by-Step
- Confirm eligibility: Verify your cross-border B2C sales exceed or are expected to exceed €10,000 in the current or following year.
- Choose your identification member state: This is your country of establishment. You cannot choose a different EU country for OSS registration convenience.
- Access the registration portal: In Germany: ioss.bzst.de. France: impots.gouv.fr (search "OSS"). Netherlands: belastingdienst.nl. For other countries, use the OECD's VATGLOBAL portal directory.
- Complete the registration form: You will need your VAT number, legal entity details, bank account (for refunds), and an estimate of your cross-border sales by country.
- Receive your OSS identification number: This is separate from your domestic VAT number. Include it on all B2C invoices for cross-border sales.
- File quarterly returns: Returns are due by the last day of the month following each quarter (Q1 → 30 April, Q2 → 31 July, Q3 → 31 October, Q4 → 31 January).
Decision Guide
Use OSS if:
- You sell B2C to consumers in 4 or more EU countries
- Your goods ship from your home country (no EU warehouses)
- You have minimal recoverable input VAT in destination countries
- Administrative simplicity is a priority
Use country-by-country if:
- You hold stock in multiple EU countries
- You have large input VAT claims in specific countries
- You operate primarily in 1–2 EU markets with very high volumes
Once you know which VAT model fits your business, calculating the correct VAT amount for each transaction is the next step. Use the EU Biz Tools VAT Calculator to compute VAT across all 27 EU member states — correct rates, correct rounding, instantly.