If you ship goods to consumers across multiple European countries, OSS (One-Stop-Shop) is hard to avoid. It lets you report VAT on your EU-wide B2C sales through a single registration, sparing you separate VAT registrations in every country. But OSS is not a master key — misused, it leads to underpaid tax and back-assessments. This guide covers where it applies, filing cycles and the most common traps.
What problem does OSS solve
After the EU VAT reform of July 2021, OSS replaced the old distance-selling thresholds. The core change: once your cross-border B2C sales to EU consumers exceed EUR 10,000 per year, you must charge VAT at the buyer's country rate.
Before OSS, that could mean registering and filing VAT separately in Germany, France, Italy and more. OSS lets you register once in a single member state and report all your EU-wide B2C distance sales through that one channel.
- Cross-border B2C distance sales, goods shipped from one country to consumers in others → use OSS, one number for filing
- Local stock in a country (e.g. Amazon FBA sub-warehouse) → that country still needs local VAT; OSS cannot replace it
What OSS covers, and what it does not
This is the most critical and most misunderstood point. OSS only covers "cross-border B2C distance sales" — goods moving from one EU country to a private consumer in another. It does not cover:
- Local stock and local dispatch: if you hold FBA stock in Germany and ship to German buyers, that is a domestic sale requiring German local VAT, not OSS.
- B2B sales: business-to-business follows reverse charge and other rules, outside OSS.
- Stock transfers: importing from China, or moving your own stock between member states, involves import VAT and transfer reporting that OSS does not handle.
Filing cycle and process
OSS is filed quarterly, four times a year. By the end of the month after each quarter, you submit B2C distance-sale details for all member states and pay all VAT at once; the registration country distributes it to the consumption countries.
- Choose one EU member state as your OSS registration country (usually where your company is established)
- Register for OSS (Union Scheme) on that country's tax portal
- Each quarter, total B2C distance sales per country and compute VAT at each country's rate
- Submit the return and pay before the deadline
The three most common traps
1. Assuming OSS replaces all VAT registrations
The number-one myth. If you hold local stock in any country (e.g. Amazon Pan-EU splitting stock to Poland, Czechia), that country has a local VAT obligation OSS cannot save. Many sellers get back-assessed for unreported local sales.
2. Miscounting the EUR 10,000 threshold
This threshold is the total of your B2C distance sales to all EU countries, not per country. Once the total crosses the line, VAT applies at the buyer-country rate from that order on.
3. Wrong VAT rate
OSS requires the buyer's country rate. EU standard rates differ (Germany 19%, France 20%, Italy 22%, etc.) and some goods have reduced rates. Using one flat rate is a common error.
FAQ
Can I choose any OSS registration country?
Under the Union Scheme you should generally register in the member state where your company is established or has a fixed establishment. If your company is in Germany, you usually register OSS in Germany.
Do I still need local tax agents with OSS?
If you hold local stock in several countries, local VAT filings there are still required and often need local tax agents. OSS only simplifies the cross-border distance-sales part.
OSS is a powerful tool for multi-country selling, but only one piece of the European tax puzzle. Local VAT registration, EPR packaging compliance, and EORI and customs at import are equally essential to launch and keep your European business running.
Further reading • Landing guideEurope company registration & VAT complianceCompany registration, VAT number and OSS filing, end to end→