EU One Stop Shop (OSS)
File one VAT return for all your EU cross-border B2C sales
The One Stop Shop (OSS) lets businesses register in a single EU country and file one quarterly VAT return covering B2C sales across all 27 member states, instead of registering for VAT separately in each country.
OSS only covers B2C transactions. For B2B cross-border sales, the reverse charge mechanism applies instead.
The Three OSS Schemes
Union OSS
For EU-established businesses selling goods or services cross-border to consumers in other EU countries.
Non-Union OSS
For non-EU businesses supplying services to EU consumers. Register in any EU Member State.
Import One Stop Shop (IOSS)
For distance sales of imported goods up to 150€ from outside the EU directly to consumers. Non-EU sellers generally need an EU-established intermediary, with limited exceptions for countries that have mutual-assistance agreements with the EU.
| Feature | Union OSS | Non-Union OSS | Import OSS (IOSS) |
|---|---|---|---|
|
Who can use it |
EU-established businesses |
Non-EU businesses (no EU establishment) |
Any seller; non-EU usually need an EU intermediary (limited country exceptions) |
|
What it covers |
B2C goods (distance sales) + B2C services |
B2C services only |
Imported goods up to 150€ |
|
Filing frequency |
Quarterly |
Quarterly |
Monthly |
|
10,000€ threshold |
Yes — (goods + digital services) | No | No |
The 10,000€ Threshold
If your total cross-border B2C sales of goods and digital services are below 10,000€ per year (current + preceding year combined), you can charge VAT at your own country's rate. You don't need OSS.
Once you exceed this threshold, you must charge the customer's country VAT rate. OSS becomes the practical way to comply without registering in every destination country.
When Does OSS Apply?
| Scenario | Customer | What You Sell | VAT Treatment |
|---|---|---|---|
|
EU seller → EU consumer (above threshold) |
Consumer (B2C) |
Goods or digital services |
Charge customer's country VAT rate. Declare via Union OSS. |
|
EU seller → EU consumer (below 10k€) |
Consumer (B2C) |
Goods or digital services |
Can charge your own country's VAT rate. OSS optional. |
|
EU seller → EU consumer |
Consumer (B2C) |
Non-digital services (general rule) |
Charge your own country's VAT rate. OSS not needed. |
|
EU seller → EU business |
Business (B2B) |
Goods or services |
Reverse charge applies, not OSS. See reverse charge rules. |
|
Non-EU seller → EU consumer |
Consumer (B2C) |
Digital/professional services |
Charge customer's country VAT rate. Declare via Non-Union OSS. |
|
Non-EU seller → EU consumer |
Consumer (B2C) |
Imported goods ≤ 150€ |
Charge customer's country VAT rate. Declare via IOSS. |
|
Non-EU seller → EU consumer |
Consumer (B2C) |
Imported goods > 150€ |
Standard import VAT at customs. IOSS not available. |
|
Non-EU seller → EU business |
Business (B2B) |
Services |
Reverse charge applies, not OSS. See reverse charge rules. |
OSS vs Reverse Charge
OSS handles B2C cross-border transactions: the seller charges VAT at the customer's country rate. Reverse charge handles B2B cross-border transactions: the buyer self-assesses VAT instead. If your customer provides a valid EU VAT number, use reverse charge. If not, use OSS.
Determining Your Customer's Location
You need two non-contradictory pieces of evidence for digital services (e.g. billing address, IP geolocation, bank country, SIM country code). For physical goods, the delivery address is sufficient.
For B2B transactions where the customer provides a valid EU VAT number, OSS does not apply. The reverse charge mechanism is used instead. Use the VatDB API to validate VAT numbers and correctly determine whether a transaction is B2B or B2C.
Frequently Asked Questions
Do I have to use OSS?
No, OSS is optional. Without it, you would need to register for VAT individually in each EU country where you sell to consumers above the threshold.
Can I use OSS for some countries and not others?
No. Once registered, all eligible supplies across all EU Member States must be declared through OSS.
What happens if I sell to both businesses and consumers?
Use OSS for your B2C sales and reverse charge for your B2B sales. Validate your customer's VAT number to determine which applies.
Does OSS replace my domestic VAT return?
No. OSS returns are additional to your normal domestic VAT return.
Validate VAT Numbers
Correctly identifying B2B customers is critical for applying reverse charge vs OSS. Automate VAT number validation with the VatDB API.
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