OSS Guide – Everything You Need to Know

Selling across the EU used to be complicated. Each country has its owns VAT rules, meaning businesses had to register, declare and pay VAT separately in every EU Member State where they sold goods or services.

Enter the One-Stop Shop (OSS). Given the success of the VAT Mini One-Stop Shop (MOSS) the OSS scheme was significantly expanded in July 2021, to further simplify cross-border VAT. The OSS allows businesses to report and pay VAT on all eligible EU sales through a single online portal. Let’s break down what this means for your business, who it affects and how to make it work.  

What is the One-Stop Shop?

The One-Stop Shop is a simplified VAT scheme introduced by the EU that streamlines VAT obligations for sellers of goods and services. With it, businesses can:

• Register in a single Member State – no need for multiple registrations
• Declare and pay all VAT due in a single electronic quarterly return
• Work with the tax administration of their own Member State, in their own language, even when selling cross border.

What are the benefits of the One-Stop Shop?

• Fewer VAT registrations across EU countries
• Simplified reporting and payments
• Reduced administrative burden and risk of errors
• Helps businesses overcome barriers to cross-border online sales
• Creates a level playing field for the digital economy across the EU

Who needs to register for the OSS scheme?

If your business sells goods or digital services to consumers in the EU and exceeds the €10,000 threshold in annual cross-border sales on distance sales of goods and services or on TBE services (e.g. telecommunications, broadcasting and electronically supplied services), you must register and this may be via the OSS.

• Only business-to-consumer (B2C) sales are included – sales to VAT-registered businesses (B2B) are generally excluded
• For sales below the €10,000 threshold, OSS is optional but using it can save you from registering in multiple countries.

How can my business register for the OSS?

Each EU member state has an online One-Stop-Shop portal where your business can register. This registration is valid for all sales in other EU member countries.

EU Member States – VAT registration

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus
• Czechia
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• Netherlands
• Northern Ireland
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden

OSS schemes

There are three One-Stop Shop schemes within the overall e-commerce VAT package:

• Union scheme – primarily for EU-based businesses. Non-EU businesses can also use it if they are selling goods from stock located in an EU member state to customers in other EU countries.
• Non-Union scheme – for non-EU businesses selling services to EU consumers. Such supplies made by non-EU traders can’t be reported under the Union OSS.
• Import One-Stop Scheme (IOSS) scheme – for importing goods valued under €150

How should I use the Union or Non-Union OSS?

There are a number of things your company should do when using the OOSS. This is not an exhaustive list:

• Apply the correct VAT rate of the state where the goods are dispatched to or services are supplied
• Collect VAT from buyers on intra-EU distance sales of goods or digital services
• Submit quarterly VAT returns your OSS Member State portal
• Maintain records of all eligible OSS sales for a minimum of 10 years.

Reclaiming VAT on expenses

OSS-registered traders are generally entitled to reclaim VAT on business expenses incurred in the other EU member states via the “Directive” refund procedure.

Businesses may prefer local VAT registration if they want to reclaim input VAT across multiple countries via a local VAT return.

Sales to the UK

Brexit caused a massive upheaval for many businesses and sellers, especially in  Northern Ireland where there is now a dual VAT regime. Though the United Kingdom is outside the European Union, EU VAT rules still to apply to sales of goods between Northern Ireland and the EU. For now it will follow EU VAT rules for the sales of goods but will be treated as a non-EU country for sales of services. So, from now on, sales of goods from NI based traders or to NI consumers may be declared through the Union scheme.

ViDA and the move to single VAT registration

A core objective of the EU’s ViDA package regarding both OSS and IOSS is to minimise the need for businesses to hold multiple VAT registrations. By 2028, the Single VAT registration (SVR) pillar will allow companies to manage almost all their cross-border VAT obligations through a single portal in their home Member State.

Timeline

• January 2027: OSS Expansion: The OSS scheme will be extended to cover supplies of electricity, natural gas, heating and cooling
• 1 July 2028 (Single VAT registration go-live):
  • OSS expansion: Extension to domestic B2C supplies of goods by non-established suppliers and supplies with installation/assembly
  • Transfers of Own Goods: A new special OSS scheme for cross-border transfers of own inventory
  • Mandatory reverse charge: Implementation of a mandatory B2B reverse charge for non-established suppliers
  • Platform economy: Deemed supplier rules for short-term accommodation and passenger transport (Member States may delay this rule until 1 January 2030).

Key changes to the OSS under ViDA

The current OSS is limited largely to cross-border B2C services and intra-Community distance sales. ViDA expands this scope significantly to effectively eliminate the need for foreign VAT registrations for e-commerce and inventory movements. 

1.Transfer of Own Goods (New scheme)

Currently, moving your own stock between EU warehouses (e.g. from France to a warehouse in Ireland) usually requires a VAT registration in the destination country to report an “intra-Community acquisition.” 

A new OSS scheme will allow businesses to report these cross-border movements of own goods. This effectively replaces the current “Call-Off Stock” simplification (which will be phased out) and removes the trigger for VAT registration in countries where you simply hold stock. 

2. Domestic sales

Currently, if a non-established business sells goods locally to a consumer (e.g. goods sold from a local warehouse in Spain to a Spanish consumer by a German company), they must register for Spanish VAT. These “domestic” B2C sales can be reported via the OSS, which removes the need for local VAT registrations for B2C sales within Member States if the seller is not established there.

3. Expanded Transaction Scope

The OSS will be widened to include: 

• Supply of goods with installation or assembly
• Supply of goods on board ships, aircraft or trains
• Supply of energy (gas, electricity, heating/cooling) to consumers. 

Summary

Feature	Current status	Future status (ViDA)
Inventory movements	Requires local VAT registration in destination country	Reportable via new OSS scheme (July 2028)
Call-off stock	Specific simplification rules exist	Phased out; replaced by the new OSS scheme
Domestic B2C Sales	Requires local VAT registration	Reportable via OSS (July 2028)

The OSS is a powerful tool for simplifying EU VAT compliance. For businesses selling across borders, it reduces multiple registrations, streamlines VAT collection and keeps your reporting in one place.

Next steps for businesses

While the major changes to the OSS go live in 2027 and 2028, businesses should begin mapping their supply chains now. Specifically, assess where you currently hold foreign VAT registrations solely for stock movements or domestic B2C sales, as these may become redundant. 

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