VAT OSS for B2C services – what services can be settled via OSS?
A foreign consumer does not automatically mean foreign VAT or OSS.
First, determine the customer's status and place of supply rule. Only then choose a settlement procedure.
Eight directions of analysis of one B2C service
Start with the general rule. Only then should you check whether the nature of the service triggers an exception and transfers VAT to another country.
B2C service
How is the service actually performed, where is the proper place, what is the human involvement and who acts as the buyer?
General rule
Does the place remain in the country where the service provider is based?
Digital and electronic
Is execution automated and requires minimal human intervention?
Check the OSS VAT limitReal estate
What specific property is the service sufficiently related to?
Events
Where is the event taking place and does the benefit include admission?
Transport
How does the transport work and what type of transport is performed?
Restaurants and catering
Where is the service actually provided?
Renting a means of transport
Is the rental short or long term and where was the vehicle delivered?
Intermediaries
What transaction does the service provider mediate and where does it take place?
The address of a foreign customer does not transfer VAT on its own
For a standard B2C service, the place of taxation is generally in the country where the service provider is based. A Polish company providing standard advice to a French consumer does not automatically fall under French VAT.
First, determine the type of service and check the exceptions described in the rules regarding the place of taxation of services in the European Union. When tax remains due in Poland, the customer's place of residence alone does not constitute a sale accountable for OSS.
Eight services, eight different checkpoints
As of July 1, 2021, the scope of OSS is broader than the former MOSS. The procedure is not limited to e-books and applications, but the broad name of the service is still insufficient for unambiguous qualification.
| Service | Analysis point | Is it OSS? | Evidence | Attention |
|---|---|---|---|---|
| Human-assisted consulting | B2C General Rule | Not automatically | Agreement, scope and method of execution | The customer's address alone does not determine the VAT location. |
| Automatic rate | Electronic service possible | Possible | Automation, access, location data | Check for minimal human involvement. |
| SaaS | Electronic service possible | Possible | Billing address, IP, bank details | The service model may change the qualification. |
| Live webinar | Human involvement and the nature of the event | Depends | Program, interaction, access method | Video transmission does not automatically constitute an electronic service. |
| Ticket to the event | Location of the event and nature of the introduction | Possible | Ticket, regulations, place and date | Distinguish admission from other organizer services. |
| Hotel or property | Property location and direct relationship | Possible | Address and description of the relationship to the property | Not every landlord service is real estate related. |
| Catering | Place of actual execution | Possible | Place, date and scope of service | Separate catering from food delivery itself. |
| Car rental | Rental period, handover and customer location | Depends | Agreement, time and handover protocol | Different rules apply to short-term and long-term rentals. |
The detailed legal basis is contained in the provisions of the VAT Directive regarding the place of supply.
The video platform does not turn every service into an electronic service
What matters most is automation, the method of implementation and actual human involvement, not the product name or communication channel itself.
Recorded course unlocked automatically
- Human participation
- Minimum at the time of provision.
- Implementation
- Automatic access via the internet.
- VAT question
- Does it meet the definition of an electronic service?
Live webinar
- Human participation
- Significant and current.
- Implementation
- The presenter participates in the performance of the service.
- VAT question
- Is the event rule or another special rule appropriate?
Individual video consultation
- Human participation
- The service is based on the work of a consultant.
- Implementation
- The Internet is a communication tool.
- VAT question
- Does the general B2C rule apply?
When qualifying electronic services, the detailed rules of Implementing Regulation 282/2011 are also relevant .
The company's headquarters and presence in the EU determine the appropriate procedure
First, confirm that the service is taxable in another EU country. Then, verify the service provider's registered office and permanent establishments.
EU OSS procedure
- the qualifying B2C service is taxed in another EU country;
- the company has no registered office or suitable permanent location there;
- the sale can be demonstrated in the EU procedure.
OSS Non-Union Procedure
- the company has no registered office or permanent establishment throughout the EU;
- the qualifying B2C service is taxable in the EU;
- The full rules are described in the Non-Union OSS.
VAT in Europe.
Choose your market.
Registration, rates, declarations and local obligations – specifically described for each country where you develop sales.
Featured
Most frequently chosen
Germany
Most frequently chosenVAT Guide 2026
VAT
in Germany
Italy
Update 2026VAT Guide 2026
VAT
in Italy
France
Update 2026VAT Guide 2026
VAT
in France
Netherlands
Guide 2026VAT Guide 2026
VAT
in the Netherlands
Czech Republic
Guide 2026VAT Guide 2026
VAT
in the Czech Republic
Belgium
Guide 2026VAT Guide 2026
VAT
in Belgium
Spain
Guide 2026VAT Guide 2026
VAT
in Spain
The 10,000 EUR limit only covers some services
Do not automatically apply the threshold to the entire catalog of services billed in OSS.
Common Threshold Range
- cross-border B2C telecommunications services;
- B2C broadcasting services;
- B2C electronic services;
- WSTO counted together with these services.
The threshold does not cover all services that could potentially fall under OSS. See the full OSS VAT limit.
Location evidence depends on the type of service
Once the correct rule has been established, the client's country or other place that determines taxation must be documented.
Billing address
Data provided by the customer and used for payment.
IP address
Technical information about where the service is used.
Bank details
Country of account or payment provider.
SIM card and other data
Evidence appropriate to the specific provision model.
When the place of taxation is France, Germany or Spain, the local context is explained in the guides: VAT in France, VAT in Germany and VAT in Spain.
The state is set - now choose the right rate
The rate is based on the law of the country of consumption and the type of service.
Corporate client requires re-qualification
If the buyer is acting as a taxpayer, you'll typically be looking at B2B rules and the reverse charge mechanism, not OSS. Simply including the "company" field in the order form isn't sufficient.
Check out the full guide to VAT OSS and B2B sales.
What to write down before VAT configuration?
The marketing name of the service isn't enough. Also include the place of supply and method of performance in your product data.
Nature of the service
- a detailed description of the service;
- degree of automation;
- human involvement;
- date of execution;
- returns and price reductions.
Customer and location
- B2C or B2B status;
- VAT number;
- client country;
- evidence of location;
- state of consumption.
Reckoning
- special place rule;
- permanent place of business;
- proper rate;
- EU or non-EU procedure;
- possible local settlement.
Not sure where to tax your B2C service?
We help you separate the general rule from the exceptions, establish location evidence and choose the EU, non-EU or local settlement procedure.
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 guideIs the service eligible for OSS?
Taxenlight can prepare and submit the appropriate settlement after determining the country of consumption and the rate.
VAT OSS for B2C Services - Questions and Answers
No. Automation and minimal human involvement are key.
Not automatically. The standard B2C rule may leave VAT in the country of the service provider.
No. It applies to cross-border telecommunications, broadcasting and electronic services and ESPO, not all B2C services.
It can use the non-EU OSS scheme if it has no registered office or fixed establishment in the EU and the services are taxed in the EU.
It is important evidence, but it must be established whether the client acts as a taxpayer for a given service.
