What are the VAT OSS and IOSS schemes?
OSS and IOSS are the European Union's One-Stop Shop schemes for VAT on cross-border sales to consumers. Instead of registering in every EU country where its customers live, a seller registers in one member state and files a single return there covering the VAT due in all the others. IOSS covers imported goods in consignments worth up to €150.
Also calledOne-Stop ShopImport One-Stop ShopOSSIOSS
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- Started
- 1 July 2021
- EU-wide threshold
- €10,000 a year
- IOSS consignment limit
- €150
How OSS and IOSS work
The schemes started on 1 July 2021, replacing the earlier mini One-Stop Shop for digital services. Business-to-consumer sales of goods shipped between EU countries, and of digital and other services, are taxed at the VAT rate of the customer's country. Below an EU-wide threshold of €10,000 a year of such cross-border sales, a seller established in one member state can charge its home VAT instead. There are three schemes: the Union scheme for EU sellers, the non-Union scheme for non-EU businesses selling services, and the Import scheme, IOSS, for distance sales of imported goods in consignments of no more than €150, excluding goods subject to excise. OSS returns are quarterly and IOSS returns monthly, and the seller pays the total through the one portal. ViDA, the EU's VAT in the Digital Age package, extends OSS to more supplies from July 2028.
Common questions
Who has to use OSS?+
No one is forced to: OSS is optional. But a seller above the €10,000 threshold must charge VAT in each customer's country, and without OSS it would need a VAT registration in each of them.
What is the difference between OSS and IOSS?+
OSS covers sales of goods moving within the EU and services to consumers. IOSS covers goods imported from outside the EU and sold to EU consumers in consignments worth up to €150.
Can non-EU businesses use OSS?+
Yes. Non-EU businesses selling services to EU consumers use the non-Union scheme, and sellers of low-value imported goods can use IOSS, usually through an intermediary established in the EU.
Software for OSS and IOSS returns
Part of Accountio’s accounting technology coverage · Glossary
