OSS and VAT One-Stop Shop: Everything E-commerce Sellers Need to Know

Introduction: The OSS Revolution for E-commerce

Before July 2021, selling online across multiple European countries was an administrative nightmare. Each country had its threshold, rules, and forms. A French e-commerce seller selling in Germany, Spain, and Italy potentially had to register and declare VAT in each of these countries.

The OSS (One-Stop Shop) regime changed everything. One declaration, one country, for all your European B2C sales.

Single European Threshold

Since July 1, 2021, a single threshold of €10,000 in annual sales to other EU countries triggers the obligation to collect destination country VAT. The OSS regime simplifies managing this complexity.

What Exactly is the OSS Regime?

The One-Stop Shop is a simplification mechanism that allows you to:

Declare all VAT due in other EU countries via a single declaration
Pay this VAT in one payment to your national tax authority
Avoid VAT registration in each country where you sell

The Three OSS Variants

1. Union OSS (extended MOSS)

For B2C sales of goods shipped from the EU to other EU countries. This is the most common regime for e-commerce sellers.

2. Non-Union OSS

For service providers established outside the EU who provide services to European consumers.

3. IOSS (Import One-Stop Shop)

For sales of goods imported from third countries worth ≤ €150. A separate regime with its own rules.

€10,000single EU thresholdOSS obligation trigger

How Does the OSS Regime Work in Practice?

Step 1: Check Your Eligibility

You can use OSS if:

You are established in an EU country
You sell goods or services to consumers (B2C) in other EU countries
Your sales exceed the €10,000 annual threshold to other EU countries

Step 2: Register for the One-Stop Shop

Registration is done through your national tax authority's website. The process takes a few days.

Step 3: Apply the Correct VAT Rates

This is where it gets complicated. Each country has its own rates:

Country	Standard Rate	Reduced Rate
France	20%	5.5% / 10%
Germany	19%	7%
Spain	21%	10%
Italy	22%	10%
Belgium	21%	6% / 12%

Watch Out for Reduced Rates

Each country defines which products qualify for reduced rates. An e-book might be at 5.5% in France but 19% in Germany. NomadVAT automatically identifies the applicable rate based on country and product type.

Step 4: Declare and Pay Quarterly

The OSS declaration is quarterly:

Q1 (Jan-Mar): due by April 30
Q2 (Apr-Jun): due by July 31
Q3 (Jul-Sep): due by October 31
Q4 (Oct-Dec): due by January 31

How NomadVAT Simplifies Your OSS

NomadVAT automates the entire process:

1Automatic identification of OSS vs non-OSS sales

2Application of correct rates by destination country

3Country-by-country breakdown for your declaration

4Calculation of amounts to declare per quarter

5Alerts when you approach or exceed the threshold

Conclusion: OSS, a Powerful Tool That Requires Rigor

The OSS regime has considerably simplified life for European e-commerce sellers. But "simplified" doesn't mean "simple". The multiplicity of rates, localization rules, and potential pitfalls require rigorous management.

Automation is no longer a luxury, it's a necessity for any e-commerce seller selling beyond their borders.