The One Stop Shop (OSS) is an EU VAT simplification regime that allows businesses to report and pay VAT on certain cross-border B2C supplies through a single electronic portal in one Member State, rather than registering in multiple Member States.
Depending on the scheme used, OSS can cover cross-border B2C services, intra-Community distance sales of goods, certain domestic supplies of goods made by deemed suppliers, and distance sales of imported goods in consignments not exceeding EUR 150.
Which OSS scheme applies to my business?
The Union OSS can be used by EU-established businesses for certain B2C services supplied in Member States where they are not established, as well as for intra-Community distance sales of goods.
The Non-Union OSS is for businesses not established in the EU that supply B2C services taking place in the EU. Being VAT-registered in the EU does not by itself prevent use of the Non-Union scheme if the business is not established there.
The Import OSS (IOSS) applies to distance sales of goods imported from outside the EU in consignments not exceeding EUR 150, excluding excise goods. It is available to EU and non-EU businesses, although non-EU businesses generally need to appoint an intermediary unless a specific mutual assistance exception applies.
Do the VAT rules for digital services affect my business?
Yes, if you supply telecommunications, broadcasting, or electronically supplied services to private customers in the EU, VAT is generally due in the Member State where the customer is established, resides, or usually lives.
Typical examples include software subscriptions, mobile apps, digital downloads, streaming services, online gaming, and other electronically supplied services delivered over the internet.
What changed from MOSS to OSS?
The Mini One Stop Shop (MOSS) was introduced on 1 January 2015 to simplify VAT compliance for businesses supplying telecommunications, broadcasting, and electronically supplied services to consumers across the EU. From 1 July 2021, MOSS was replaced by the wider One Stop Shop (OSS) framework, which broadened the scope of the regime to include additional cross-border B2C services, intra-Community distance sales of goods, and certain supplies facilitated by electronic interfaces.
Do I need to register for VAT in every EU country where my customers are based?
Not necessarily. OSS allows businesses to declare eligible cross-border B2C supplies through one Member State of identification instead of registering separately in each Member State of consumption.
However, local VAT registrations may still be required for transactions that fall outside the scope of the relevant OSS scheme or must be declared domestically.
Can I choose OSS for some countries but not others?
No. If a business opts to use an OSS scheme, it must use that scheme for all supplies covered by that scheme in the relevant Member States.
This rule applies to transactions within the scope of the scheme, not to every transaction carried out by the business.
Can I reclaim input VAT through OSS?
No. OSS is a reporting and payment mechanism for output VAT only.
Input VAT incurred in other Member States must generally be recovered through the applicable VAT refund procedure or through local VAT registrations where required.
Is there a threshold for OSS?
A EUR 10,000 annual threshold applies in limited cases to cross-border B2C telecommunications, broadcasting, and electronically supplied services, and to intra-Community distance sales of goods made by suppliers established in only one Member State, subject to the statutory conditions.
This is not a general OSS threshold and does not apply to all supplies covered by OSS or IOSS.
Can non-EU businesses use OSS?
Yes. Non-EU businesses supplying B2C services in the EU can use the Non-Union OSS.
Non-EU businesses making eligible distance sales of imported goods may also use IOSS, although an intermediary is generally required unless a specific exception applies..
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