Definition
VAT OSS (One Stop Shop) is an EU scheme that lets a business selling to consumers in other EU countries declare and pay the VAT due in all of them through a single quarterly return in one member state. It replaced the older MOSS scheme in 2021 and covers cross-border sales of services and distance sales of goods.
Also called: One Stop Shop, OSS, Union OSS, IOSS, VAT MOSS
VAT OSS in practice
Once a business's cross-border sales to EU consumers exceed an EU-wide threshold, it must charge VAT at the rate of the customer's country. Without OSS, that would mean registering for VAT in each country. With OSS, the business registers once and files one return listing sales by country.
There are three variants. The Union scheme is for EU businesses, the non-Union scheme is for non-EU businesses selling services to EU consumers, and the Import One Stop Shop (IOSS) covers low-value goods shipped into the EU from outside.
OSS applies to business-to-consumer sales. Sales to VAT-registered businesses in other EU countries normally fall under the reverse charge instead, and are not reported through OSS.
Example
A Dutch online course creator sells to consumers in France, Germany, and Spain. She charges each country's VAT rate at checkout and reports all of those sales on one quarterly OSS return in the Netherlands.
Frequently Asked Questions
Do non-EU businesses need OSS?
Non-EU businesses selling digital or other services to EU consumers usually must account for EU VAT, and the non-Union OSS scheme lets them do it through one registration.
Does OSS apply to sales to businesses?
No. OSS is for sales to consumers. Sales to VAT-registered businesses in other EU countries are generally reverse-charged, with the customer accounting for the VAT.
Related terms
- VAT VAT (value added tax) is a consumption tax charged at each stage of the supply chain on the value added, used in the EU, UK, and more than 160 other countries.
- Reverse charge Reverse charge is a VAT rule under which the buyer, rather than the seller, accounts for the VAT on a transaction.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- Multi-currency invoice A multi-currency invoice is an invoice issued in a currency other than the seller's home currency, usually the client's currency or an agreed international one such as USD or EUR.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.