Glossary
What is the One Stop Shop (OSS)?
The One Stop Shop (OSS) is an EU VAT scheme that lets a seller declare and pay VAT on cross-border sales to consumers across the EU through a single quarterly return, instead of registering for VAT in every member state where they sell. |
How does OSS work?
The seller charges the customer’s local VAT rate at the point of sale, then reports every member state’s sales on one return filed in a single country. That country’s tax authority redistributes the VAT to the others. Registration replaces what could otherwise be dozens of separate national VAT registrations.
OSS or IOSS which applies?
- OSS covers goods already inside the EU moving cross-border to consumers, plus certain services.
- IOSS covers goods imported from outside the EU in low-value consignments.
- A seller holding stock in an EU warehouse and also shipping direct from outside the EU may need both.
Why it exists
OSS arrived on 1 July 2021 as part of the EU’s e-commerce VAT package, replacing the older distance selling thresholds that each member state set individually. Those thresholds meant a growing seller could trip into a new national VAT registration without noticing OSS removed that trap.
iCustoms keeps OSS and IOSS treatment straight across your EU flows, so the right scheme applies to every order. |
