VAT OSS and B2B sales – when is a business customer not subject to OSS?
Standard B2B sales do not go to OSS, but checking "I am buying on behalf of a company" is not enough.
For goods, you determine the buyer's status, intra-Community acquisition of goods (ICA), and transportation. For services, you verify whether the customer is acting as a taxpayer for a specific service. Only then do you choose intra-Community acquisition of goods (ICA), reverse charge, or B2C rules.
Goods and services are analyzed separately
The VAT number is important in both cases, but it doesn't answer all the questions on its own. For goods, physical transport is also crucial. For services, it depends on the customer's status for the specific service and the appropriate place of taxation rule.
When is the sale of goods considered IDT/IWNT?
A typical delivery to a taxpayer with an active VAT ID in another country, combined with inter-country transport and meeting other conditions, may constitute an IDT on the part of the seller and an INT on the part of the buyer. It is not considered an ISTO or a sale accounted for by the OSS.
- Determine buyer status
Check whether the buyer acts as a taxpayer and whether his ITC is subject to taxation.
- Verify VAT ID
Confirm the number appropriate for the intra-EU transaction and save the result.
- Combine delivery with transport
The goods must actually move between EU countries.
- Collect evidence and report
Document the transport and check the invoice, VAT-EU and INTRASTAT.
If the purchaser belongs to a specific group whose ITC is not subject to VAT under the rules set out in Article 3 of the VAT Directive, the supply may still meet the definition of ITC. The company name itself does not exclude the procedure described in the ITC and VAT OSS.
How to verify VAT ID in VIES?
Check the number in the official VIES and save the result at the time of the transaction. The system confirms the current status but does not allow for convenient retrieval of the number's validity for any historical date.
- Order detailsNumber, country and buyer details.
- VIES inquiryVerification before tax decision.
- Recording the resultDate, time, status and reference number.
- WDT/WNT, B2B tax decision or further analysis
- ArchivePDF file, system record or event log.
- RecheckWhen data is changed or corrected.
Combine it with buyer details, shipping and other evidence.
Verify the number and prefix with the customer. Don't automatically assume the customer is a consumer.
Save the attempt, apply the internal procedure, and retry the check. A lack of response is not a tax decision.
The European Commission recommends saving the result in case of an audit. VIES retrieves data from national databases, so an "invalid" status may also indicate that the number has not been activated for intra-EU transactions or that registration has not been completed.
B2B services and reverse charge
For services provided to a taxpayer acting as a taxpayer, the basic B2B rule shifts the place of taxation to the buyer's country. VAT is typically settled there by the buyer under the reverse charge mechanism. Such sales are not transferred to the OSS.
Does the customer act as a taxpayer for this service?
Check VAT ID, business details and how a specific benefit is used.
Basic rule: buyer's country
Typically reverse charge and settlement outside OSS.
Check the rule that applies to the consumer
OSS may be subject to VAT on qualifying services. See VAT OSS for B2C services.
Customer provides VAT ID after purchase - what to do?
Do not automatically convert a historical transaction from B2C to B2B. Entering the number later triggers requalification, but does not determine its outcome.
- Determine the right moment
Check the delivery or service date.
- Verify number
Determine its validity and relationship to the buyer.
- Check the nature of the purchase
Confirm business usage and customer status.
- Recreate transaction
Include transportation, documents and original reports.
- Document the correction
If the change is justified, keep a full track of the decision.
If the change affects a previous declaration, apply the rules described in the VAT OSS correction.
Same account type does not mean same settlement
The outcome depends on the type of service, the status of the buyer, and the transport. The examples below illustrate the direction of analysis, not the automatic classification of each transaction.
The buyer settles the WNT and the delivery meets the other conditions.
Potential WDT/WNT - outside OSSVAT in GermanyThe buyer is an organization belonging to a specific group.
Possible STO - check OSS conditionsWSTO and VAT OSSThe customer acts as a taxpayer and provides the correct VAT ID.
Basic B2B rule and reverse chargeVAT in FranceThe service is purchased privately by the consumer.
B2C/OSS possible - check service ruleVAT OSS for B2C servicesTrading platform and customer status
The platform should provide data that allows for the separation of B2C and B2B. The type of business account or company invoice alone does not replace verification.
Account type is not a tax qualification
The seller should know what information the customer provided, when the VAT number was verified, and whether the data allows for determining the status of a specific transaction. The VAT OSS and Trading Platforms.
Checklist before disabling transactions from OSS
Don't base decisions on a single field. Compare customer data with the item sold, transportation, documentation, and required reporting.
- Goods or services
- Customer name and address
- VAT ID and country of issue
- VIES date and time
- Result reference number
- Acting as a taxpayer
- Buyer's ITC status
- Direction of transport
- Delivery notes
- WDT/WNT or reverse charge
- WSTO or OSS
- Invoice and VAT-EU
- Possible INTRASTAT
- Later VAT ID
- Correction and justification
- Document archive
The physical flow of goods may create a separate statistical obligation. See how to combine data in the VAT OSS and INTRASTAT.
Don't call every company sale a "0% rate"
For B2C taxed in the country of consumption, you apply the appropriate rate for that country. Intra-Community supply and reverse charge require their own terms and documentation—they don't automatically result from the company invoice.
Not sure if your client should go to OSS?
We help separate B2B and B2C, organize VIES documents, transport and reporting, and then indicate the appropriate settlement in Poland and abroad.
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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 movements and local sales from the foreign warehouse.
Read the guideVAT OSS for sale without own warehouse
Analysis of the supply chain and the choice between OSS, IOSS and local VAT.
Read the guideVAT OSS and trading platforms
Cases in which a platform may be considered a supplier for VAT purposes.
Read the guideVAT OSS and business-to-business sales
Distinguishing the OSS procedure from IDT, INT, place of supply and reverse charge.
Read the guideVAT OSS for consumer 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 guideOSS Non-Union Procedure
Non-EU scheme for eligible consumer services provided by non-EU companies.
Read the guidePermanent place of business
The influence of a permanent 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 single-purpose and multi-purpose vouchers and the moment of VAT liability.
Read the guideSeparate B2B and B2C sales before submitting your declaration
Match customer status, VIES score, nature of service, and transportation with the appropriate invoice and report.
VAT OSS and B2B Sales - Questions and Answers
Typically, no, but the seller must properly establish the customer's status and transaction type. A company invoice is not sufficient proof.
No. Other conditions are also required, including the proper status of the buyer, international transportation, and required evidence.
Not automatically. You need to check the customer's status, their role in the transaction, and—for goods—the ITC status and transport.
Check the number in the official VIES system. Record the country, number, date, time, result, reference number, and buyer details.
The number may not exist, not be activated for intra-EU transactions, or its registration may not have been completed. First, verify the details with the customer; do not automatically classify them as a consumer.
VIES confirms validity for the current day, so it is worth archiving the verification result at the time of the transaction.
The basic B2B service billed in the buyer's country, usually via reverse charge, remains outside the OSS.
Perform documented requalification. Review the timing, customer status, nature of purchase, shipping, and original reports instead of automatically amending the transaction.
