EU VAT for Online Sellers in 2026: OSS, IOSS and Distance Selling

In short: An EU online seller can charge home-country VAT on cross-border consumer sales until they pass €10,000 a year EU-wide. Above that, VAT is due in each customer's country. The One Stop Shop (OSS) lets you declare it through one quarterly return. Imports up to €150 use the monthly Import One Stop Shop (IOSS).

This guide reflects the rules in force in October 2026. It summarises the EU framework and links to Taxually's detailed guides on each scheme and to our country VAT manuals. Always confirm rates and national rules with the tax authority before you file.

What is EU distance selling and how is it taxed in 2026?

A distance sale is a sale of goods to a consumer in another EU country, where you or someone on your behalf ships the goods. Since 1 July 2021, VAT on these sales is normally due in the country where the goods arrive.

The rule comes from the 2017 e-commerce VAT directive. The place of supply is "the place where the goods are located" when dispatch to the customer ends (Directive (EU) 2017/2455). In practice, a French shop selling to a consumer in Italy charges Italian VAT once it is above the threshold.

The same destination principle applies to telecommunications, broadcasting and electronic services supplied to EU consumers. For a plain-English background on the 2021 reform, see our guide to EU distance selling regulations.

How does the €10,000 EU-wide threshold work?

The €10,000 threshold is a single EU-wide limit, not a per-country limit. Below it, a small seller may charge the VAT of its home country on cross-border B2C sales.

• What counts: the combined value, excluding VAT, of intra-EU distance sales of goods and cross-border B2C telecommunications, broadcasting and electronic services (EU OSS portal).
• Which years: the test looks at the current and the preceding calendar year. If either year exceeds €10,000, destination-country VAT applies (Article 59c, VAT Directive).
• EU-wide total: the limit is measured across all Member States together, not per country (Greek tax authority OSS FAQ).
• Who can use it: only suppliers established in a single Member State that dispatch goods from that state. Non-EU businesses with fixed establishments in the EU cannot use it (EU OSS portal).
• Opting out: a seller below the threshold may choose to charge destination VAT anyway. That choice binds it for two calendar years (EU OSS portal).

The old national thresholds of €35,000 and €100,000 no longer exist. They were replaced by the single €10,000 limit on 1 July 2021 (Greek tax authority OSS FAQ).

When must you register for VAT locally instead of using OSS?

OSS only covers specific B2C cross-border supplies. Any other taxable activity in a country usually needs a local VAT number there, even if you also use OSS.

The OSS portal confirms that OSS returns "are additional to, and do not replace" domestic VAT returns (EU OSS portal). Common situations that need a local registration include:

• Stock held in another country: a sale from a warehouse in Germany to a German consumer is a domestic German supply. The Union scheme covers domestic supplies only for deemed-supplier marketplaces, so you need a German VAT number (EU OSS registration guidance).
• Moving your own goods between countries: transferring stock to a fulfilment centre in another Member State is a separate taxable event outside today's OSS. This is why pan-EU fulfilment programmes trigger several registrations. See 9 common triggers for VAT registration in the EU.
• B2B sales: OSS is designed for supplies to non-taxable persons (consumers). Sales to VAT-registered businesses follow the normal intra-Community supply and reverse charge rules.
• Imports into the EU in your own name: if you import goods above €150, or below €150 without using IOSS, import VAT is paid at customs. Read what import VAT is and how it works.
• Late OSS registration: if you miss the notification deadline for early sales, you must register and account for VAT in each country of consumption (EU OSS registration guidance).

Our step-by-step guide on how to register for VAT in the EU covers the local process. Amazon sellers should also read about the end of Amazon's call-off stock programme.

What is the difference between OSS and IOSS?

OSS (Union and non-Union schemes) covers goods already inside the EU and B2C services. IOSS (the import scheme) covers low-value goods shipped to EU consumers from outside the EU.

• Union OSS: for EU-established businesses supplying B2C services in other Member States, for intra-EU distance sales of goods, and for marketplaces acting as deemed suppliers. Non-EU sellers can use it, but only for intra-EU distance sales of goods (EU OSS registration guidance).
• Non-Union OSS: for businesses with no establishment in the EU that supply services to EU consumers. It cannot be used by EU-established businesses (EU OSS registration guidance).
• IOSS (import scheme): for distance sales of goods imported from outside the EU in consignments of an intrinsic value not exceeding €150. Goods subject to excise duty are excluded (Article 369l, VAT Directive).
• Return frequency: quarterly for Union and non-Union OSS; monthly for IOSS (EU OSS: declare and pay).
• All or nothing: once you join a scheme, it applies to all eligible supplies in all Member States. You cannot pick and choose countries (EU OSS portal).

For a side-by-side explainer, read OSS and IOSS: what they are and the difference. For the full detail on each, see everything you need to know about OSS and everything you need to know about IOSS.

How does the €150 IOSS limit work?

IOSS applies only when the intrinsic value of the consignment is €150 or less. With IOSS, the seller charges VAT at checkout and the parcel clears customs without further VAT.

• Above €150: the goods go through normal customs import procedures and customs duty is also due (Greek tax authority OSS FAQ).
• Excise goods: alcohol, tobacco and other excise products cannot use IOSS, whatever their value (Article 369l, VAT Directive).
• Without IOSS: import VAT is paid at import, often collected from the customer by the carrier. The directive also allows simplified "special arrangements" for postal and courier operators (Directive (EU) 2017/2455).
• Marketplaces: a marketplace that facilitates imports of €150 or less to EU consumers is treated as the deemed supplier for VAT (EU OSS portal).

Customs duty is changing too. From 1 July 2026, the EU charges an interim flat customs duty of €3 per item category in small parcels sent directly to EU consumers. It applies until 1 July 2028 and may be extended (Council of the EU). This is a customs measure; it does not change the €150 IOSS VAT limit.

For a practical walkthrough, see implementing IOSS step by step.

Who needs an IOSS intermediary?

A business established outside the EU must appoint an EU-established intermediary to use IOSS. EU businesses may appoint one, but do not have to.

• Liability: the intermediary is liable for the VAT and IOSS obligations of the business it represents (EU OSS portal).
• Identification: the intermediary registers first in its own Member State of identification. It then receives a separate IOSS VAT number for each seller it represents (EU OSS registration guidance).
• Exception: sellers in a third country with an EU mutual assistance agreement, shipping from that country, need no intermediary (EU OSS registration guidance).
• National extras: Member States may add their own conditions, such as a guarantee (EU OSS portal).

Non-EU sellers should also read our guide to EU VAT for non-EU businesses.

Where do you register for OSS or IOSS?

You register in one Member State of identification, and the law usually decides which one. You cannot freely pick a country if you are established in the EU.

• EU-established sellers: register in the Member State where the business is established, for both Union OSS and IOSS (EU OSS registration guidance).
• Non-EU sellers with no EU establishment (Union OSS): register in the Member State where dispatch of the goods begins (EU OSS registration guidance).
• Non-EU sellers with EU fixed establishments: choose one of those states; the choice binds you for the current year and the next two (EU OSS registration guidance).
• Non-Union OSS: a non-EU business may choose any Member State (EU OSS registration guidance).
• IOSS via an intermediary: the intermediary's Member State of identification applies (EU OSS registration guidance).

OSS registration normally starts on the first day of the next calendar quarter. You can start earlier, from your first eligible sale, if you notify by the tenth day of the following month. IOSS applies from the day the IOSS number is allocated (EU OSS registration guidance).

What are the OSS and IOSS filing and payment deadlines?

All OSS and IOSS returns and payments are due by the end of the month after the period ends. Union and non-Union OSS are quarterly; IOSS is monthly.

• Q1 OSS return: due 30 April (EU OSS: declare and pay).
• Q2 OSS return: due 31 July.
• Q3 OSS return: due 31 October.
• Q4 OSS return: due 31 January of the following year.
• IOSS return: due by the last day of the month after each calendar month.
• Weekends and holidays: they do not move the deadline. You cannot file before the period ends.
• Nil returns: required for any period with no eligible supplies.
• Currency: returns are generally in euro. Non-euro sales use the European Central Bank rate on the last day of the period.
• Corrections: made in a later return, within three years of the original due date.

Payment counts as made only when it reaches the Member State of identification's bank account. Payment plans must be agreed with each Member State of consumption (EU OSS: declare and pay). For how OSS sits alongside other filings, see common EU returns: Intrastat, ESL, VAT, OSS and IOSS.

What records must OSS and IOSS users keep?

You must keep detailed records of every OSS and IOSS transaction for 10 years from the end of the year of the transaction. This applies even after you leave the scheme.

• Retention period: 10 years (Article 369x, VAT Directive; EU OSS record keeping).
• Content: the Member State of consumption, type of supply, date, VAT payable, payments on account and the evidence used to locate the customer (EU OSS record keeping).
• Access: records must be made available electronically, on request and without delay, to the Member State of identification or any Member State of consumption.
• Invoices: under OSS and IOSS there is generally no obligation to issue an invoice. If you issue one, the rules of the Member State of identification apply (EU OSS record keeping).

What happens if you file or pay OSS late?

The Member State of identification sends a reminder ten days after a missed deadline. Penalties and interest then come from each Member State of consumption under its own national rules.

• Persistent late filing: three consecutive reminders, each unanswered within ten days, lead to exclusion (EU OSS: declare and pay).
• Persistent late payment: three consecutive unpaid periods lead to exclusion, unless the unpaid amount for each is below €100.
• Missing records: failing to provide records within a month of a reminder also counts as persistent non-compliance (EU OSS record keeping).
• After a reminder from a country of consumption: pay that country directly. Payments sent to the Member State of identification are returned.
• Intermediaries: if an IOSS intermediary is excluded, every seller it represents is excluded too.

Exclusion means you must register and file locally in every country where you sell. Penalty levels differ by country; see the country VAT guides below.

What ViDA changes are already adopted, and when do they apply?

The VAT in the Digital Age (ViDA) package was adopted on 11 March 2025 as Directive (EU) 2025/516. Its changes apply in stages between 2025 and 2035 (Directive (EU) 2025/516).

• From 14 April 2025: Member States may require domestic e-invoicing without asking the EU for a derogation.
• From 1 January 2027: technical changes take effect, including a wider non-Union OSS covering all services to EU consumers.
• From 1 July 2028 (single VAT registration): OSS extends to cover transfers of own goods and further supplies. A reverse charge applies more widely where the supplier is not established or registered in the country.
• From 1 July 2028 (platforms): platforms become deemed suppliers of short-term accommodation rental and passenger road transport. This does not apply if the host or driver gives a VAT number and charges VAT.
• 30 June 2028 and 30 June 2029: no new call-off stock arrangements can start after 30 June 2028. The call-off stock regime ends on 30 June 2029.
• From 1 July 2030: e-invoicing becomes the default, and digital reporting starts for intra-EU B2B transactions.
• By 1 January 2035: countries with existing real-time reporting systems must align them with the EU model.

Read our analysis of what ViDA means for businesses.

What are the standard VAT rates in all 27 EU countries?

Standard VAT rates range from 17% in Luxembourg to 27% in Hungary. Under OSS, you charge the rate of the customer's country, so you need each country's rate for every product.

The list below follows the European Commission's Your Europe table, last checked by the Commission on 13 July 2026 (Your Europe VAT rates). Regional rates, such as those in the Azores, Madeira or Greek islands, are excluded. Reduced rates apply only to specific goods and services, so check the product category in each country.

• Austria: standard VAT rate 20%; reduced 10% / 13%. Austria VAT guide
• Belgium: standard VAT rate 21%; reduced 6% / 12%. Belgium VAT guide
• Bulgaria: standard VAT rate 20%; reduced 9%. Bulgaria VAT guide
• Croatia: standard VAT rate 25%; reduced 5% / 13%. Croatia VAT guide
• Cyprus: standard VAT rate 19%; reduced 5% / 9% (super-reduced 3%). Cyprus VAT guide
• Czechia: standard VAT rate 21%; reduced 12% (plus 0% for listed supplies). Czechia VAT guide
• Denmark: standard VAT rate 25%; reduced 0% for listed supplies only. Denmark VAT guide
• Estonia: standard VAT rate 24%; reduced 9%. Estonia VAT guide
• Finland: standard VAT rate 25.5%; reduced 10% / 13.5%. Finland VAT guide
• France: standard VAT rate 20%; reduced 5.5% / 10% (super-reduced 2.1%). France VAT guide
• Germany: standard VAT rate 19%; reduced 7%. Germany VAT guide
• Greece: standard VAT rate 24%; reduced 6% / 13% / 17% (super-reduced 4%). Greece VAT guide
• Hungary: standard VAT rate 27%; reduced 5% / 18%. Hungary VAT guide
• Ireland: standard VAT rate 23%; reduced 9% / 13.5%. Ireland VAT guide
• Italy: standard VAT rate 22%; reduced 5% / 10% (super-reduced 4%). Italy VAT guide
• Latvia: standard VAT rate 21%; reduced 5% / 12%. Latvia VAT guide
• Lithuania: standard VAT rate 21%; reduced 5% / 12%. Lithuania VAT guide
• Luxembourg: standard VAT rate 17%; reduced 8% (super-reduced 3%, parking 14%). Luxembourg VAT guide
• Malta: standard VAT rate 18%; reduced 5% / 7% (parking 12%). Malta VAT guide
• Netherlands: standard VAT rate 21%; reduced 9%. Netherlands VAT guide
• Poland: standard VAT rate 23%; reduced 5% / 8%. Poland VAT guide
• Portugal: standard VAT rate 23%; reduced 6% / 13% (mainland). Portugal VAT guide
• Romania: standard VAT rate 21%; reduced 11%. Romania VAT guide
• Slovakia: standard VAT rate 23%; reduced 5% / 19%. Slovakia VAT guide
• Slovenia: standard VAT rate 22%; reduced 5% / 9.5%. Slovenia VAT guide
• Spain: standard VAT rate 21%; reduced 10% (super-reduced 4%). Spain VAT guide
• Sweden: standard VAT rate 25%; reduced 6% / 12%. Sweden VAT guide

How do you choose an OSS and IOSS compliance provider?

Choose a provider that covers your full EU footprint: OSS, IOSS and any local registrations your stock or B2B sales create. Software alone rarely covers filings in every country.

• Scheme coverage: Union OSS, non-Union OSS and IOSS in one place, plus local VAT returns where you hold stock.
• Intermediary service: non-EU sellers using IOSS need an EU-established intermediary that accepts liability.
• Data connections: imports from marketplaces, web shops and payment platforms, with mapping of product categories to reduced rates.
• Rate maintenance: a clear process for updating rates when countries change them.
• Deadline control: calendars and reminders for quarterly OSS, monthly IOSS and local filings.
• Record keeping: secure storage of transaction-level evidence for the 10-year retention period.
• ViDA readiness: a plan for the 2028 OSS extension and 2030 e-invoicing and digital reporting.
• Pricing clarity: per-country, per-return and registration fees stated upfront.

Options include tax-engine software, marketplace VAT services, local accountants in each country and managed compliance platforms. Taxually's CrossTax handles OSS, IOSS and local VAT registrations and filings for online sellers.

Sources

• European Commission: One Stop Shop portal
• European Commission: Register for the OSS
• European Commission: Declare and pay in the OSS
• European Commission: Record keeping and audits in the OSS
• Council Directive (EU) 2017/2455 (EUR-Lex)
• Council Directive (EU) 2025/516, VAT in the Digital Age (EUR-Lex)
• Council of the EU: final green light to customs duty rules for small parcels (11 February 2026)
• Your Europe: VAT rules and rates
• Independent Authority for Public Revenue (Greece): OSS FAQ