Concept Definition
What is the EU One Stop Shop (OSS)?
The EU One Stop Shop (OSS) is a simplified VAT registration scheme introduced in July 2021 that allows businesses selling digital services, telecommunications, and distance goods to EU consumers to register for VAT in one EU member state and file a single return covering all EU sales, instead of registering in every country where customers are located.
What are the OSS schemes?
The EU OSS introduced in 2021 comprises three schemes:
- Union OSS: For EU-established businesses selling goods and digital services B2C across the EU.
- Non-Union OSS: For non-EU businesses providing digital services to EU consumers.
- Import OSS (IOSS): For businesses importing low-value goods (under EUR 150) directly to EU consumers.
Frequently Asked Questions
- Is OSS mandatory?
- OSS is voluntary. Businesses can choose to register locally in each EU member state instead. However, OSS significantly reduces administrative burden for businesses with cross-border B2C sales and is generally preferred over multi-country registration.
- Does OSS cover B2B transactions?
- No. OSS covers only B2C transactions. B2B cross-border supplies within the EU are covered by the reverse charge mechanism, not OSS. OSS also does not cover domestic B2C sales, which are subject to normal national VAT rules.