Selling online to consumers in several EU countries means charging VAT at each customer’s local rate. The EU’s One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) let you report that VAT in one place instead of registering in every country. This guide explains how OSS and IOSS work, who can use them, where their limits are, and what changes with the EU’s VAT in the Digital Age reform from 2028.
Quick answer: OSS lets businesses selling goods or services to consumers in other EU countries declare and pay the VAT due in all those countries through one quarterly return in their home country. IOSS does the same for goods imported into the EU in consignments worth up to €150: VAT is charged at checkout and reported in one monthly return. Neither scheme covers stock you store in other EU countries; that usually still needs local VAT registration.
The basics: VAT where your customer is
Since 1 July 2021, B2C sales of goods across EU borders are generally taxed in the customer’s country once your total cross-border B2C sales exceed €10,000 a year across the EU. Below that threshold, EU-based small sellers can charge their home VAT. Above it, you charge each customer’s local VAT rate, which is where OSS helps.
OSS vs IOSS at a glance
| OSS (Union scheme) | IOSS | |
|---|---|---|
| Covers | Intra-EU distance sales of goods and B2C services | Imported goods sold to EU consumers in consignments up to €150 |
| VAT rate | Customer’s country | Customer’s country, charged at checkout |
| Return | Quarterly, in your OSS country | Monthly |
| Who registers | EU businesses (and non-EU businesses with stock in the EU, for those sales) | Sellers or marketplaces importing low-value goods; non-EU sellers usually through an EU intermediary |
| Not covered | Domestic sales, B2B sales, storing stock in other countries | Consignments over €150, excise goods |
How OSS works
- Register once for OSS in your EU country of establishment.
- Charge the right rate to each customer, based on their country.
- File one quarterly return listing sales and VAT per country, and pay the total to your OSS tax authority, which distributes it.
- Keep records of all OSS transactions for ten years.
How IOSS works
- Register for IOSS, directly or (for most non-EU sellers) through an EU-based intermediary.
- Charge VAT at checkout at the customer’s rate for consignments up to €150.
- Put your IOSS number on the shipment data, so goods clear customs without VAT being collected again from the customer.
- File one monthly return.
IOSS deals with VAT only. Since 1 July 2026, low-value consignments also pay a €3 customs duty per item, whatever VAT scheme is used.
Marketplaces as “deemed suppliers”
When you sell through a marketplace, the marketplace itself is often treated as the supplier for VAT purposes, for example for imported consignments up to €150, and for sales by non-EU sellers of goods already stored in the EU. In those cases the marketplace charges and pays the VAT, not you. Check each marketplace’s terms.
The limits: storing stock in other countries
OSS doesn’t cover your warehouses
Moving your own stock to a warehouse in another EU country, for example to offer next-day delivery in Germany, is a taxable transfer, and local sales from that stock are domestic sales. Both usually require a VAT registration in that country. OSS does not cover them today.
What changes from 2028: VAT in the Digital Age (ViDA)
The EU adopted its VAT in the Digital Age package in 2025. Among other changes, its single VAT registration pillar extends the One-Stop Shop from 1 July 2028, including a new scheme for cross-border transfers of your own goods, so fewer multi-country VAT registrations will be needed. Until then, plan for local registrations where you hold stock.
Practical checklist
- Track cross-border B2C sales against the €10,000 threshold.
- Register for OSS if you sell to consumers in several EU countries.
- Use IOSS, or a marketplace that handles it, for low-value imports.
- Register for VAT in each country where you store stock.
- Show correct VAT-inclusive prices per country at checkout.
VAT rules depend on your situation. Use this guide as an overview and confirm the details with a tax adviser.
Related: The €3 EU parcel duty · our warehouse locations · Importer of record
Frequently asked questions
What is the difference between OSS and IOSS?
OSS covers cross-border B2C sales within the EU and B2C services, reported quarterly. IOSS covers imported goods in consignments up to €150, with VAT charged at checkout and reported monthly.
What is the €10,000 OSS threshold?
An EU-wide annual threshold for cross-border B2C sales by EU-based sellers. Below it you may charge your home VAT; above it you charge VAT at each customer’s rate, usually via OSS.
Does OSS cover stock in other EU warehouses?
No. Transfers of your own stock and local sales from a warehouse in another EU country usually require local VAT registration. From July 2028 ViDA extends OSS to cover transfers of own goods.
Do non-EU sellers need an intermediary for IOSS?
In most cases yes. Non-EU sellers usually register for IOSS through an EU-based intermediary, unless they are established in a country with a VAT mutual assistance agreement with the EU.
Does IOSS cover the €3 customs duty?
No. IOSS deals with VAT. The €3 per item customs duty on low-value consignments applies from 1 July 2026 whatever VAT scheme is used.
Sources
Figures are taken from the sources below and were checked in September 2026. Market estimates from research firms are labelled as estimates in the text.
