VAT OSS – what is it and how does One Stop Shop work?
VAT OSS is an EU procedure that allows VAT due on eligible B2C transactions in other EU countries to be declared and paid in one country. It is not a new tax, a common VAT rate, or a single VAT number replacing all foreign registrations.
In practice, you choose your country of identification, submit an electronic OSS declaration there, and pay your tax. The administration of that country transfers the data and funds to the countries of consumption.
How does VAT OSS work?
For sales from Poland to a consumer in Germany, the tax may be settled under the Polish OSS procedure, but it is still German VAT at the applicable German rate. The mechanism is also described in the European Commission's official guide to the OSS One-Stop Shop.
- B2C SalesA company sells a good or service to a consumer.
- Country of consumptionYou determine the country to which VAT is due.
- Local rateYou apply the rate appropriate for transactions in that country.
- OSS DeclarationYou record the transaction in the country of identification.
- One paymentYou pay the total VAT to the administration of the country of identification.
- VAT transferData and tax go to the countries of consumption.
What does VAT OSS cover?
The One Stop Shop system includes three special procedures. In this guide, the word OSS primarily refers to the EU and non-EU procedures.
EU procedure
Primarily STO, certain B2C services and selected domestic deliveries made by a platform seller deemed to be a supplier.
Non-EU procedure
Eligible B2C services provided in the EU by a company without a registered office or fixed establishment in the EU.
IOSS import procedure
Distance selling of imported goods in shipments meeting IOSS requirements. Import remains a customs clearance procedure.
If the goods are located outside the EU before sale, please refer to the OSS vs. IOSS. If a non-EU company sells services to EU consumers, please refer to Non-Union OSS.
When qualifying transactions, the reference point remains the EU rules on the place of taxation and the VAT Directive.
| Procedure | Who can use it? | What does it include? | Declaration | A typical example | Separate guide |
|---|---|---|---|---|---|
| Union OSS | EU company, qualifying non-EU seller or platform recognised as a supplier. | STO, specific B2C services and selected domestic platform deliveries. | Quarterly | Goods PL → consumer DE. | WSTO and VAT OSS |
| Non-Union OSS | A company without a registered office or permanent place of business in the EU. | Eligible B2C services provided to consumers in the EU. | Quarterly | Non-EU company → service to EU consumer. | Non-Union OSS |
| IOSS | Seller or platform for qualifying import sales. | Distance selling of imported goods in shipments meeting the IOSS conditions. | Monthly | Non-EU goods → EU consumer. | OSS and IOSS |
Who can use the EU OSS procedure?
The EU scheme can be used by a company based in the EU, a non-EU company making a qualifying ESPO, or a platform deemed to be a supplier for transactions covered by this structure. Simply having a VAT number in an EU country does not automatically mean having a permanent establishment there.
Registration is voluntary. However, once you choose a procedure, you cannot settle only the countries you conveniently choose. The "all-in" principle requires that all transactions under the selected procedure be recorded in all relevant countries of consumption.
What transactions most often end up in OSS?
Intra-Community distance selling of goods
A typical case of goods is the shipment from one EU country to a consumer in another EU country, organized by the seller, on their behalf, or with their indirect involvement. The full terms and conditions are explained in the WSTO and VAT OSS.
B2C services
OSS is no longer limited to electronic services. First, the place of supply must be determined. If a specific rule transfers VAT to the consumer's country, settlement can be made to the OSS. Details: VAT OSS for B2C services.
Selling through marketplace
The platform does not settle VAT for the seller on every sale. However, in certain cases, it becomes a recognized supplier for VAT purposes, and the chain is divided into two deliveries. Criteria: VAT OSS and the marketplace.
Merchandise, B2C cross-border sales.
After determining the place of taxation.
OSS covers qualifying sales, not all company events.
Goods from stock in another EU country.
Potentially for WSTO DE → FR.
No local stock duties.
Domestic sales from German stock.
This is not WSTO.
A German number and VAT settlement may be required.
Sales to a corporate client.
Standard B2B selling is not OSS.
Depending on the type of transaction.
The goods are located outside the EU before sale.
Potentially, if the shipment meets the conditions.
Imports still remain customs clearance.
B2C service with tax base in France.
If the service qualifies for the procedure.
First, you need to establish the correct rule.
The 10,000 EUR limit is not the OSS registration limit
The €10,000 threshold applies to the place of taxation of a specific aggregate turnover: ESPO and cross-border B2C telecommunications, broadcasting, and electronic services. It does not cover all services or every OSS transaction.
What needs to be checked?
The application of the threshold requires the fulfilment of additional conditions, including the establishment in only one Member State.
What happens after crossing?
Sales covered by the rule are generally taxed in the country of consumption. You can use the OSS or fulfill local obligations.
The rules for net, current and previous year counting and the moment of exceedance are explained by the VAT OSS limit of EUR 10,000.
The State of Identification and the State of Consumption
One declaration may contain separate items for Germany, France, the Czech Republic and Italy, distributed according to the appropriate rates.
State of identification
Handles your registration, declaration and basic OSS payment.
The State of Consumption
It is the country that is entitled to VAT on a specific transaction.
What does OSS not replace?
OSS centralizes the settlement of specific transactions only. It does not automatically replace other tax and reporting obligations.
Local VAT
Registration for import, own stock movement, domestic sales from stock or other activities outside the procedure.
National declarations
VAT declarations related to the local number or B2B, WDT/WNT and reverse charge settlements.
Other reporting
Recovery of input VAT, INTRASTAT, other statistical reports or records required for OSS.
First, determine the customer's status.
Do you sell to several EU countries?
We help determine which transactions can be submitted to OSS and which require local registration and VAT returns. This is especially important for marketplaces, foreign warehouses, and multi-vendor sales.
How to start OSS billing in Poland?
First, qualify transactions and determine the country of identification. A Polish company without a foreign permanent establishment registers for the Union OSS in Poland via the VIU-R. Registration can be effective from the first day of the following quarter, and after meeting the conditions and timely reporting, also from the first qualifying sale. The full process is described in the VAT OSS registration , and the official source is information on OSS registration and the Polish OSS/IOSS system .
After registration, you submit a quarterly VIU-DO, also zero-based, and pay in EUR with the correct UNR. Step-by-step instructions: VIU-DO. The European Commission also describes the rules for OSS declarations and payments.
Are you ready for OSS?
- Transaction Map
- Customer status
- Place of goods
- Country of commencement and termination of transport
- Proper procedure
- The State of Consumption
- Correct VAT rate
- Currency and exchange rate
- Record
- Local VAT numbers
- Deadlines
- Marketplace responsibility
Find the answer to your VAT OSS problem
Choose a path that matches the stage your company is at.
I want to start
I want to submit a return
I sell goods
I have a problem
Related guides
The next six topics address the most frequently asked questions after learning about the VAT OSS mechanism.
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 guideDo you need support with your OSS VAT settlement?
If you need to process declarations and payments, please visit the service page. You can also check the detailed VIU-DO instructions first.
VAT OSS – FAQ
No. OSS is voluntary, but VAT due in the country of consumption must be accounted for. Alternatively, local obligations in the relevant countries may apply. Once OSS is selected, the procedure is not applied selectively.
No. OSS centralizes the reporting of specific transactions. It does not replace the numbers needed for inventory, import, local sales, or other obligations.
Standard B2B sales are not OSS. For goods, you analyze the IDT/ICT, and for services, the place of supply and reverse charge. An exception on the part of IDT recipients may be specific entities for which IDT is not subject to VAT.
Not in the OSS declaration. Refund or deduction is made through the appropriate local declaration or refund procedure. See VAT charged on OSS.
No. STO from a foreign warehouse can be transferred to OSS, but moving your own inventory and selling it locally may require local VAT. See OSS VAT and Amazon FBA and Foreign Warehouses.
Registration for the OSS is voluntary. However, it is mandatory to correctly settle the VAT due in the country of consumption. A company can use the OSS or fulfill the relevant local obligations. Once the procedure is selected, all transactions within its scope must be included in it.
The €10,000 threshold applies to the place of taxation of a specific aggregate turnover: ESPO and cross-border B2C telecommunications, broadcasting, and electronic services. It is not a limit for OSS registration and does not cover all transactions.
Under both the EU and non-EU procedures, declarations are filed quarterly. After registration, Polish taxpayers also submit VIU-DOs for periods without sales covered by the procedure. IOSS is settled monthly.
Under the Polish OSS procedure, tax is paid in EUR with a valid unique reference number (UNR). The amount includes the VAT reported for each country of consumption on the VIU-DO declaration.
Not always. OSS does not replace local registration resulting from, among other things, imports, own stock movements, domestic sales from stock, or other activities outside the scope of the procedure.
