What is OSS?
The One-Stop Shop (OSS) is an EU VAT scheme for businesses selling to consumers in several EU countries. Instead of registering for VAT in every customer’s country, you register once, charge each customer the VAT rate of their country, and report all those sales in one quarterly OSS return. Your OSS country then passes the VAT on to the other countries.
OSS replaced the older Mini One-Stop Shop (MOSS) for digital services on 1 July 2021, when the EU extended it to cross-border sales of goods. On the same date, the separate distance-selling thresholds of each country were replaced by one EU-wide threshold of €10,000.
Core principle: One registration and one return for VAT on cross-border sales to EU consumers. OSS changes where you report the VAT, not how much VAT is due.
The three OSS schemes
1. Union scheme
For intra-EU distance sales of goods and for services to consumers in EU countries where the business is not established. It is used by EU businesses, and by non-EU businesses for sales shipped from stock held in the EU.
This is the scheme most e-commerce brands use.
2. Non-Union scheme
For services supplied to EU consumers by businesses with no establishment in the EU, such as software or online courses.
Watch out for: It covers services only, not goods.
3. Import scheme (IOSS)
For goods imported in consignments worth up to €150 and sold to EU consumers, with VAT charged at checkout and declared monthly.
See the separate entry on IOSS.
The €10,000 threshold
A business established in only one EU country can charge its home VAT on cross-border sales to consumers until its total sales of this kind across the EU exceed €10,000 in a calendar year. Above that, it charges the VAT of each customer’s country, usually through OSS. The threshold does not apply to businesses established outside the EU, or to goods shipped from stock in a country other than the seller’s own.
What OSS covers, and what it doesn’t
| Covered by OSS (Union scheme) | Not covered by OSS |
|---|---|
| Goods shipped from one EU country to consumers in another | Domestic sales in the country where your stock is |
| Services to consumers in other EU countries | B2B sales, which normally use the reverse charge |
| Sales by marketplaces acting as deemed suppliers | Moving your own stock to a warehouse in another EU country |
| Reclaiming input VAT, which needs a local return or a VAT refund claim |
OSS and multiple warehouses
OSS works best with one stock location. If you add a warehouse in a second EU country, transferring your own goods there and selling them to local customers both need a local VAT registration, on top of OSS. The EU’s VAT in the Digital Age (ViDA) reform extends OSS to transfers of own goods from 1 July 2028. Until then, plan for one VAT registration per country where you hold stock.
How OSS works in practice
- Register for OSS online in your country of establishment, or, for a non-EU business, in the EU country you ship from.
- Charge each customer VAT at their country’s rate.
- File the OSS return within one month after the end of each quarter, showing sales and VAT per country.
- Pay the total to your OSS tax authority, and keep records for 10 years.
Example: A Dutch skincare brand ships orders from its warehouse in the Netherlands to customers across the EU. Its cross-border consumer sales pass €10,000 in March. From then on it charges German VAT to German customers, French VAT to French customers and so on, and declares it all in one quarterly OSS return to the Dutch tax authority. Sales to Dutch customers stay on its normal Dutch VAT return.
Read the full guide: EU VAT for eCommerce: OSS and IOSS explained. Non-EU brands should also read Selling in the EU from outside the EU: VAT, EORI and stock.
Frequently asked questions
Is OSS mandatory?
No, it is optional. The alternative is registering for VAT in every EU country where you sell to consumers above the threshold, which most businesses avoid.
How often is the OSS return filed?
The Union and non-Union schemes are quarterly, due by the end of the month after the quarter. IOSS returns are monthly.
Can a non-EU business use OSS?
Yes. It can use the Union scheme for sales shipped from stock held in the EU, registering in the country the goods are shipped from, and the non-Union scheme for services.
Does OSS cover stock in several EU countries?
No. Holding stock in another EU country usually needs a local VAT registration there. ViDA extends OSS to transfers of own goods from 1 July 2028.
Can I reclaim input VAT through OSS?
No. Input VAT is reclaimed through a normal VAT return in the country where you are registered, or through the EU VAT refund procedure.
