OSS
Category: tax
One-Stop Shop — EU system allowing businesses to file VAT in one country for all EU B2C sales.
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The One-Stop Shop (OSS) is an EU-wide VAT simplification scheme launched on 1 July 2021 that allows businesses to report and pay VAT on all EU cross-border B2C sales through a single return in one EU member state. OSS eliminates the need to register for VAT separately in each EU country where sales occur. It covers both EU-based sellers (Union scheme) and non-EU sellers shipping from a single EU country.
The OSS (One-Stop Shop) is an EU VAT reporting mechanism that allows businesses to declare and pay VAT on cross-border B2C services and goods through a single quarterly electronic return, rather than registering for VAT separately in each of the 27 member states where they have customers. There are three OSS schemes: the Union Scheme for EU-established businesses supplying to other member states, the Non-Union Scheme for non-EU businesses providing digital services to EU consumers, and the Import OSS (IOSS) for goods valued at €150 or less imported from outside the EU. The OSS does not eliminate VAT — it simplifies the administrative process of reporting and paying VAT across multiple jurisdictions. Businesses with annual cross-border B2C sales below €10,000 may use the home-country VAT rate instead of the destination-country rate under the cross-border threshold exemption.
Examples
- • A German seller with B2C sales to France, Italy, and Spain can use OSS to report all EU sales on a single German quarterly return instead of registering in each country.
- • A non-EU seller shipping goods from a Polish warehouse to consumers across Europe can use the non-Union OSS scheme to file one return covering all EU B2C sales.
- • Sellers using OSS must charge the VAT rate of the customer's country (e.g., 20% France rate for French consumers) and pay via the OSS return.