OSS VAT limit €10,000 – when is a sale subject to VAT in the customer’s country?
The €10,000 limit is not a limit for OSS registration. It is a common EU threshold for the place of taxation of certain B2C transactions.
Once VAT is exceeded, it essentially passes to the state of consumption. For taxpayers settling the threshold in Poland, the statutory equivalent is PLN 42,000.
How to check the OSS VAT limit?
The threshold covers both eligible ESPO and cross-border TBE B2C services. You check the condition for the previous and current calendar years.
It is not converted into PLN every year at the current exchange rate.
Used by taxpayers settling the threshold in Poland.
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Second incremental counter
What counts towards the limit?
You calculate the total value excluding VAT for all EU countries. You don't create a separate threshold for Germany, France, or the Czech Republic.
| Transaction | Count? | Why? | Target Guide |
|---|---|---|---|
| WSTO | Yes | Qualified B2C distance sales of goods in the EU. | WSTO and VAT OSS |
| B2C electronic service | Yes | Qualified cross-border TBE service covered by the threshold rule. | VAT OSS for B2C services |
| B2C consulting | NO | Not every B2C service is a TBE service that falls under the threshold. | B2C and OSS services |
| B2B | NO | Standard corporate sales remain outside this B2C threshold. | VAT OSS and B2B |
| IOSS | NO | Import distance selling has a separate procedure. | OSS and IOSS |
| Local sales | NO | Transport begins and ends in the same country. | OSS or local VAT |
| Goods with assembly | NO | It is not a standard threshold ESPO. | Delivery location analysis |
| A new means of transport | NO | Subject to special VAT rules. | Separate analysis |
When can the threshold be applied?
Merely having a turnover of less than €10,000 is not sufficient. The taxpayer and the transactions must meet all the conditions for simplification.
One state of establishment
The taxpayer is established in only one Member State. The actual FE in the other Member State may opt out of the threshold.
Proper scope of transaction
The sale meets the conditions of STO or qualified cross-border TBE B2C services.
Previous and current year
In none of the periods examined did the total value of eligible transactions exceed the threshold.
A VAT number or warehouse alone does not determine FE. See the Fixed Establishment and VAT OSS and the STO conditions. Official rules on the place of taxation are also published by the European Commission.
Which order exceeds the threshold?
If the previous year was below the limit, you monitor the current year cumulatively. Sales that resulted in the exceedance are now subject to the consumption state rule.
The previous year remains below the threshold.
500 PLN remains to the threshold.
New sum: PLN 42,700.
Not sure which transactions fall under your threshold?
We help you separate your STO and TBE services from your local sales, B2B, imports, and warehouse flows before the system starts charging you incorrect rates.
Is it possible to select the customer's country VAT in advance?
Yes. A taxpayer may opt out of the simplification and opt for taxation in the country of consumption before exceeding the threshold.
The State of Consumption
A change in the place of taxation may occur earlier than the threshold is exceeded.
Two calendar years
The Commission indicates that the choice made will be binding for two calendar years.
Do small sales from the DE warehouse remain subject to Polish VAT?
Not based on the limit itself. The threshold prevents sales originating from foreign stock from being taxed in Poland simply because the turnover is low.
DE Magazine
The goods are in Germany before sale.
FR Client
Transport begins in Germany and ends in France.
WSTO analysis with DE
Stock may also create separate local obligations in Germany.
You will find more information in the VAT OSS and Amazon FBA and in the VAT in Germany.
What to do after crossing?
First, determine the transaction exceeding the threshold. Then, change the VAT calculation and select the method for settling the tax in the countries of consumption.
- Determine the transaction exceedingSpecify the date, amount and country of consumption.
- Change checkoutEnable the correct VAT rates for your customer countries.
- Choose OSS or local VATOSS centralizes settlements but is not mandatory.
- Submit VIU-RIf you choose OSS, include the date of your first transaction. OSS VAT registration.
- Prepare a VIU-DO report.Separate sales by country and rate. VIU-DO.
- Verify ConfigurationVerify rates, products, and transactions outside of OSS.
Threshold Control Checklist
- One state of establishment
- Previous year
- Current year cumulative
- Values excluding VAT
- All countries together
- WSTO and TBE services
- The actual legal value of the threshold
- Order exceeding
- Voluntary choice
- OSS or local VAT configuration
VAT OSS Library
Select a topic on the left. On the right, you'll see a brief summary and a direct link to the relevant guide.
VAT OSS
General guide to the One Stop Shop mechanism, procedures, country of identification and country of consumption.
Read the guideOSS VAT Limit
Explanation of the EUR 10,000 threshold, how it is calculated and when the place of taxation changes.
Read the guideWSTO and VAT OSS
Conditions for intra-Community distance sales of goods, recipients and most important exclusions.
Read the guideOSS and IOSS
Comparison of sales of goods located in the EU with import sales from a third country.
Read the guideVAT OSS registration
Separate instructions for registration to the EU OSS procedure via the VIU-R form.
Read the guideVIU-DO
A practical guide to the OSS quarterly VAT return, EUR currency and UNR number.
Read the guideVAT OSS correction
Rules for settling refunds, discounts and errors relating to a previous period.
Read the guideOSS VAT records
The scope of data needed to prepare declarations and subsequent control of OSS settlements.
Read the guideDeregistration from VAT OSS
Withdrawal from the procedure and change of country of identification.
Read the guideExclusion from VAT OSS
Reasons for exclusion, consequences and conditions for re-registration.
Read the guideOSS VAT audit and penalties
Risks related to errors, missing declarations, arrears and incomplete records.
Read the guideVAT OSS and Amazon FBA
Separation of STO from stock transfers and local sales from the foreign warehouse.
Read the guideVAT OSS in dropshipping
Analysis of the supply chain and the choice between OSS, IOSS and local VAT.
Read the guideVAT OSS and the marketplace
Cases in which a platform may be considered a supplier for VAT purposes.
Read the guideVAT OSS and B2B sales
Distinguishing the OSS procedure from WDT, WNT, place of supply and reverse charge.
Read the guideVAT OSS for B2C services
Services where the place of taxation may be in the country of the consumer.
Read the guideVAT OSS and INTRASTAT
Explanation of why the OSS procedure does not replace statistical obligations.
Read the guideInvoices, KSeF, JPK and cash register
The relationship between the OSS procedure and national documentation and record-keeping obligations.
Read the guideOSS or local VAT
Scenarios in which the procedure does not replace registration and declaration in another country.
Read the guideSME procedure and VAT OSS
Comparison of two separate solutions for cross-border VAT settlements.
Read the guideVAT charged at OSS
Ways to recover VAT on costs outside the OSS declaration.
Read the guideNon-Union OSS
Non-EU scheme for eligible B2C services provided by non-EU companies.
Read the guidePermanent place of business
The influence of the fixed establishment on the choice of the country of identification and the scope of OSS settlement.
Read the guideEU special territories
Areas that require a separate analysis of the territorial scope of EU VAT.
Read the guideGift cards and vouchers
Settlement of SPV and MPV vouchers and the moment of VAT liability.
Read the guideAre you over the threshold and want to settle your sales via OSS?
We help organize data, prepare VIU-DO declarations and payments for consumption countries.
OSS VAT Limit – FAQ
No. This is a single overall threshold for eligible transactions to all EU countries.
Excluding VAT.
No. This includes certain cross-border telecommunications, broadcasting and electronic services, not all services covered by OSS.
No. You must correctly account for the VAT of the countries of consumption; OSS is a voluntary alternative to local settlement.
Not in a way that allows you to ignore the previous year. You check the condition for both the previous and current year.
There is no mandatory limit for OSS registration. A threshold of €10,000, or PLN 42,000 for Poland, applies to the place of taxation of eligible transactions. OSS remains a voluntary method of settling VAT due in the countries of consumption.
The EU threshold is €10,000 net of VAT. For taxpayers settling the threshold in Poland, the statutory equivalent is PLN 42,000. This value is not converted annually at the current euro exchange rate.
Add up eligible ESPO and cross-border B2C TBE services to all EU countries net of VAT. Check separately for the previous year and the current year cumulatively. Do not add standard B2B, local sales, or imports accounted for via IOSS.
Once the threshold is exceeded or the tax base for eligible transactions is selected, the place of taxation changes. However, there is no automatic obligation to use OSS – the taxpayer can choose either OSS or the appropriate local settlement method.
