EU VAT One-Stop Shop schemes (OSS and IOSS)

The EU VAT One-Stop Shop (OSS) is a system that lets businesses selling to consumers across EU member states register, file, and pay VAT in a single country rather than in every country where they have customers. It replaced the old VAT MOSS scheme and individual distance-selling thresholds in July 2021.

There are three schemes, each covering a different type of seller and transaction:

Union OSS - For EU-established businesses selling digital products, physical goods, and services to consumers across the EU.
Non-Union OSS - For non-EU businesses selling digital products and services to EU consumers.
Import OSS (IOSS) - For any business shipping physical goods valued under €150 from outside the EU to EU consumers.

Union One-Stop Shop (OSS for EU businesses)

The Union OSS applies to EU businesses selling goods or services to consumers in other EU member states. Once annual cross-border B2C sales exceed €10,000, the business must charge the VAT rate of each customer’s country rather than its own domestic rate, and file a single quarterly OSS return covering all EU sales.

For customers in your own country, your domestic VAT rate applies.
For customers in other EU countries, the customer’s country VAT rate applies.

For EU businesses with less than €10,000 in annual sales to consumers in other EU countries, registration in the OSS is optional. You may continue to apply your domestic VAT rate until you cross the threshold.

Non-Union One-Stop Shop (OSS for non-EU businesses)

The Non-Union OSS applies to non-EU businesses selling digital products and services to EU consumers. There is no registration threshold: a non-EU business must register from its first sale to an EU consumer. The VAT rate of each customer’s country applies to every sale.

Note that the Non-Union OSS covers services only. Non-EU businesses selling physical goods dispatched from within the EU need a local VAT registration or an EU establishment to use the Union OSS.

Import One-Stop Shop (IOSS for low-value goods)

IOSS applies to physical goods with an intrinsic value below €150 shipped from outside the EU to EU consumers. It lets sellers collect VAT at checkout so buyers do not face a surprise VAT bill when their package arrives at the border.

Non-EU sellers must appoint an EU-resident intermediary who registers and files on their behalf. EU sellers can register directly in any member state.

Customs duties apply from 1 July 2026. The EU abolished the €150 customs duty exemption for low-value imports. All goods entering the EU now attract customs duties regardless of value or IOSS registration. For IOSS shipments under €150, a transitional flat rate of approximately €3 per item applies until July 2028. IOSS covers VAT only — customs duties are a separate obligation handled by the carrier or the buyer.

Without IOSS registration, the customs declarant (postal carrier, courier, or customs agent) collects VAT from the buyer at the border in addition to any applicable customs duties.

Common Questions

I am registered in the IOSS. Will Quaderno exclude sales over €150 from my IOSS report?

Yes. Quaderno will not include sales over €150 in your IOSS report. For those sales, VAT and any customs duties are collected at the border.

What happened to the old EU distance-selling thresholds?

The individual per-country distance-selling thresholds were replaced by a single EU-wide threshold of €10,000. Country-specific thresholds no longer apply.

I hold stock in multiple EU countries. Do I need to register in each one separately?

Yes. If you store goods in another EU member state, you generally need a local VAT registration there, regardless of your OSS registration.

🔎 You can learn more about the EU VAT One-Stop Shop schemes on our blog: