Everything You Need to Know About the One Stop Shop (OSS)

In short: The One Stop Shop (OSS) is an EU VAT scheme that took effect on July 1, 2021. OSS lets businesses selling B2C goods and services across the EU register in one member state. They then file one quarterly VAT return and make one payment for all their EU sales through a single online portal.

Update (October 2026): The OSS rules below still apply in 2026. We have corrected who can use each scheme and added the 2026–2027 filing deadlines. ViDA, adopted in March 2025, extends the OSS from 1 July 2028.

Selling to customers across the EU used to mean many VAT registrations and filings, one in each country. The One Stop Shop (OSS) changes that. OSS is designed to simplify cross-border VAT compliance. It lets businesses report and pay VAT for all EU sales through a single online portal. In this guide, we explain how the OSS works, who it's for, how to register, and why it’s a game-changer for EU e-commerce.

What is OSS?

The One Stop Shop (OSS) is a system set up by the European Union to simplify VAT compliance. It helps businesses that sell goods or services online to customers in EU member states. The OSS replaced the Mini One Stop Shop (MOSS). The reforms came into effect on July 1, 2021.

There are a number of VAT schemes in the UK and EU that make VAT simpler, but none are as comprehensive as OSS. Under the OSS scheme, businesses can register for VAT in one member state. They then use that registration to declare and pay VAT on all cross-border sales within the EU through a single electronic portal.

This means you don’t have to register for VAT in every EU member state where you have customers. Those registrations can be time-consuming and costly.

The One Stop Shop covers two types of cross-border supplies:

• B2C (business-to-consumer) supplies of goods, such as ecommerce sales.
• B2C supplies of services, such as digital services.

The OSS system aims to make it easier for businesses to sell goods and services across the EU. It’s part of the wider EU ecommerce package, which includes other measures to promote cross-border ecommerce within the EU. It also lets businesses declare a range of other services provided to non-taxable persons across EU member states.

What's the difference between the Union and non-Union One Stop Shop?

The Union OSS covers intra-EU distance sales of goods and B2C services supplied by EU businesses. The non-Union OSS is for businesses outside the EU that supply services to EU consumers. These are the two parts of the One Stop Shop VAT scheme.

The EU’s Union OSS is mainly used by businesses established in the EU and registered for VAT. Non-EU sellers can also use it, but only for distance sales of goods shipped from inside the EU. The non-Union One Stop Shop is meant for businesses not established in the EU that sell services. This includes companies based in third countries such as the United States or China (and the UK following Brexit).

Both options let companies declare and pay VAT on their B2C sales to EU customers through the single electronic portal. The Union OSS covers distance sales of goods and services. The non-Union OSS covers B2C supplies of services only.

Who can use each OSS scheme in 2026?

Eligibility depends on where you are established and what you sell. The EU OSS portal lists these groups:

• Union OSS, EU businesses: B2C services supplied in EU countries where the business has no establishment, and intra-EU distance sales of goods (EU OSS portal).
• Union OSS, non-EU businesses: intra-EU distance sales of goods only, for example goods shipped to consumers from a warehouse in the EU (EU OSS portal).
• Union OSS, marketplaces: electronic interfaces treated as deemed suppliers can declare distance sales of goods and certain domestic supplies of goods (EU OSS portal).
• Non-Union OSS: businesses not established in the EU that supply B2C services taking place in the EU. This covers all such services, not only digital ones (EU OSS portal).
• Import OSS (IOSS): distance sales of goods imported from outside the EU in consignments worth up to €150. It is a separate scheme with monthly returns.

The €10,000 threshold applies only to intra-EU distance sales of goods and telecommunications, broadcasting and electronic services. Below that annual EU-wide total, you may charge your home country’s VAT. Above it, VAT is due in each customer’s country (EU OSS portal).

The schemes are optional. Once you join, a scheme covers all your eligible supplies in every EU country, not just some (EU OSS portal).

So, with the One Stop Shop VAT system, you only register with one country and file one VAT return, even if you sell across the EU. Your local tax authority then passes the VAT you’ve collected and paid on to the relevant EU countries for you.

How does the One Stop Shop (OSS) work?

The One Stop Shop (OSS) works through one registration, one quarterly return, and one payment, all handled online in a single EU member state. Here’s how each part works:

Centralized VAT registration

You don’t need to register for VAT in each EU country where you sell goods or services. Instead, you register for the OSS in just one EU member state. This cuts admin and saves time.

Quarterly VAT reporting

You file a single quarterly VAT return via the OSS portal in your chosen member state. This return includes sales to customers in all EU countries and shows the VAT owed for each destination country.

Payment simplification

You make one combined VAT payment to the tax authority of your registered member state. That authority then passes the VAT on to each EU country where the goods or services were sold.

Digital accessibility

The OSS runs entirely online. You can register, file returns, and make payments without dealing with complex international tax systems.

By bringing VAT processes together, the OSS greatly reduces compliance complexity. This lets you focus more on growth and customer satisfaction while still meeting your VAT obligations across the EU.

How do you register for the OSS system?

You register for the One Stop Shop online with the tax authority of one EU member state. First, you choose the member state where you'll be identified for VAT purposes. This is where you'll make your VAT declarations and pay VAT.

EU businesses must register in the member state where they are established. Non-EU businesses using the Union OSS register in the member state from which their goods are dispatched. Non-EU businesses using the non-Union OSS may choose any member state, and receive a VAT ID in the format EUxxxyyyyyz. Read more in our guide: Single EU VAT Registration - What it Means for Your Business.

To register for the One Stop Shop, you submit an online application form to the tax authority of your chosen country. You may also need to provide supporting documents, such as proof of VAT registration or identification documents.

Once the tax authority processes your registration, it will send you confirmation. You can then activate your One Stop Shop account and start declaring, collecting, and paying VAT on your EU sales.

When does OSS registration take effect?

OSS normally applies from the first day of the calendar quarter after you notify your member state of identification. You can start earlier, from your first eligible sale, if you notify by the tenth day of the following month (EU OSS portal).

• Several dispatch countries or fixed establishments: you may choose one, but the choice binds you for that year and the next two (EU OSS portal).
• VAT number: the Union OSS uses your existing domestic VAT number. A non-EU seller first obtains one from the member state of identification (EU OSS portal).

What are the OSS filing and payment deadlines?

Union and non-Union OSS returns are quarterly. Each return and its payment are due by the end of the month after the quarter ends, according to the EU OSS declare and pay guidance. The next deadlines are:

• Q3 2026 (July–September): due 31 October 2026.
• Q4 2026 (October–December): due 31 January 2027.
• Q1 2027 (January–March): due 30 April 2027.
• Q2 2027 (April–June): due 31 July 2027.

What else do you need to know about OSS returns?

• Nil returns: if you made no OSS sales in a quarter, you must still file a nil return (EU OSS portal).
• Corrections: you correct errors in a later return, within three years of the original due date (EU OSS portal).
• Payment: you pay your member state of identification, quoting the return’s unique reference. Payment counts only when it reaches that state’s bank account (EU OSS portal).
• Late filing or payment: you receive an electronic reminder on the tenth day after the deadline. Penalties and collection come from each member state of consumption (EU OSS portal).
• Exclusion: reminders for three consecutive periods, each not acted on within 10 days, lead to exclusion. For unpaid VAT, this does not apply if each period’s amount is under €100 (EU OSS portal).
• Records: keep OSS records for 10 years from the end of the year of the transaction, even after leaving the scheme. You must provide them electronically on request (EU OSS portal).

When do you still need a local VAT registration?

OSS does not replace your domestic VAT returns. The EU OSS portal states that OSS returns are additional to them. Common cases that still need a local VAT number include:

• Stock in another country: a sale from a warehouse in that country to a local consumer is a domestic supply. Only deemed-supplier marketplaces can report these through the Union OSS today.
• Moving your own stock: transferring goods to a warehouse in another EU country is outside the current OSS.

For a fuller list, see 9 common triggers for VAT registration in the EU.

What are the benefits of the One Stop Shop VAT scheme?

The main benefit of the One Stop Shop is that it saves time by streamlining VAT processes. This applies to businesses both inside and outside the EU. The key benefits include:

Simplified VAT compliance

The One Stop Shop simplifies VAT compliance for businesses selling goods or services across EU member states. You don’t need to register for VAT in each member state. Instead, you register for the OSS system in one member state and submit a single VAT return for all your cross-border sales. For a closer look, see OSS and IOSS - What Are They and What’s the Difference?.

Reduced administrative burden

With the OSS system, you no longer need to file separate VAT returns in each member state where you sell. You still charge each customer the VAT rate of their country. This cuts admin and makes it easier to meet your VAT obligations.

Improved customer experience

The One Stop Shop VAT scheme helps businesses give customers a better experience. You can offer full support and specialist advice so that VAT is charged and collected correctly at the point of sale, wherever the customer is.

What is the future of the One Stop Shop?

The One Stop Shop is likely to play an even bigger role in simplifying cross-border trade in the EU. The OSS has already transformed VAT compliance for EU businesses by streamlining cross-border tax management. As digital trade grows, the OSS supports the EU's vision of a more unified marketplace.

The next changes are already law. The EU adopted the VAT in the Digital Age (ViDA) package as Council Directive (EU) 2025/516 on 11 March 2025. It extends the OSS in two stages. The Import One Stop Shop (IOSS) continues alongside it.

Key ViDA dates for the OSS

• 14 April 2025: the directive entered into force (Directive (EU) 2025/516).
• 1 January 2027: first OSS amendments apply, including updated non-Union scheme rules and clearer rules on reclaiming input VAT through the refund procedure (Article 2 of the directive).
• 1 July 2028: the Union OSS widens. It will cover B2C sales of goods by sellers not established where the goods are taxed. This includes goods that never leave one country (Article 3, new Article 369b).
• 1 July 2028: a new special scheme for transfers of own goods starts. It lets businesses report stock moved to another EU country in one monthly return (Article 3, new Articles 369xa to 369xk).
• 30 June 2028 and 30 June 2029: call-off stock simplification ends. It covers only goods dispatched by 30 June 2028 and stops applying on 30 June 2029 (amended Article 17a).

For the wider reform, read what ViDA means for businesses.

The One Stop Shop with Taxually

At Taxually, we can take care of the One Stop Shop registration process for you, file your OSS returns, and pay VAT when it's due.

To find out more, book a free call with one of our VAT experts. We offer bespoke solutions for your business, can optimize your VAT costs, and help you reach millions of new potential customers.

How Taxually handles this

Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.

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