Before July 2021, selling business-to-consumer (B2C) into the European Union meant registering for value-added tax (VAT) in every country you shipped to. Each country set its own distance-selling threshold, commonly €35,000 or €100,000. Registrations piled up. Buyers got surprise VAT bills at delivery, and carts got abandoned.
Two portals fixed most of that. The One Stop Shop (OSS) handles intra-EU B2C VAT in one quarterly return. The Import One Stop Shop (IOSS) handles low-value imports of €150 or less in one monthly return. The European Commission runs the official OSS portal guidance. Many sellers need both.
OSS vs IOSS: What Is the Difference?
OSS is for intra-EU B2C supplies, filed in one quarterly return. IOSS is for goods imported from outside the EU in consignments of €150 or less, filed in one monthly return. OSS covers goods already inside the EU plus cross-border services. IOSS covers low-value imports. A business can need both.
| Dimension | OSS | IOSS | Source |
|---|---|---|---|
| What it covers | Intra-EU B2C distance sales of goods plus cross-border B2C services | Goods imported from outside the EU in consignments of €150 or less | European Commission (vat-one-stop-shop.ec.europa.eu) |
| Who can use it | EU-established businesses; non-EU businesses for intra-EU goods and for B2C services (Non-Union) | Sellers of low-value imported goods; marketplaces as deemed supplier | European Commission |
| VAT collection moment | At the point of sale within the EU, remitted via the home portal | At checkout, at the destination country’s rate | European Commission |
| Threshold | €10,000 EU-wide, for sellers established in one member state | None; VAT applies from the first sale | European Commission |
| Return frequency | Quarterly | Monthly | European Commission |
| Customs treatment | None; goods already in the EU | No import VAT levied at the border because it was collected at checkout | European Commission |
| Intermediary | Not required | Required for most non-EU sellers | European Commission (Directive 2017/2455) |
Why Did the EU Replace MOSS With OSS in July 2021?
On 1 July 2021, the EU’s VAT e-commerce package expanded the Mini One Stop Shop (MOSS) into OSS, created IOSS, and abolished the €22 import VAT exemption. MOSS had run since 1 January 2015 and covered only telecom, broadcasting, and electronic (TBE) services. Per-country distance-selling thresholds gave way to one EU-wide €10,000 limit.
| Change | Before 1 July 2021 | From 1 July 2021 | Source |
|---|---|---|---|
| Digital-services filing | MOSS, live since 1 January 2015, TBE services only | OSS, covering goods and all cross-border B2C services | European Commission (vat-one-stop-shop.ec.europa.eu) |
| Distance-selling threshold | Per-country limits, commonly €35,000 or €100,000 | Single EU-wide €10,000 combined threshold | Directive (EU) 2017/2455 (eur-lex.europa.eu) |
| Low-value import relief | Goods valued €22 or less exempt from import VAT | Exemption abolished; all imports subject to VAT | European Commission (taxation-customs.ec.europa.eu) |
| Marketplace liability | Individual seller liable for VAT | Deemed-supplier rules make marketplaces liable for facilitated sales | Directive (EU) 2017/2455 (eur-lex.europa.eu) |
Abolishing the €22 relief was the causal reason IOSS exists. The European Commission reports the change generated almost €700 million in new VAT revenue in its first six months, equivalent to about €1.4 billion a year. The full legal basis sits in Council Directive (EU) 2017/2455. Under its deemed-supplier rule, marketplaces like Amazon and eBay became liable for VAT on many third-party sales they facilitate.
What Is the OSS VAT Scheme?
The One Stop Shop is an optional EU electronic portal. It lets businesses declare and pay VAT on B2C supplies across all member states through a single quarterly return filed in one member state of identification. OSS is one of three schemes in the 2021 package: Union, Non-Union, and Import (IOSS). One registration, one return.
Union OSS vs Non-Union OSS: Who Uses Which?
The Union scheme covers EU-established businesses making intra-EU distance sales of goods and cross-border B2C services. Non-EU businesses also use it for intra-EU goods movements. The Non-Union scheme is for non-EU businesses supplying B2C services only, never goods. It needs no intermediary. The seller picks any member state as its point of identification.
This corrects a common mix-up. According to the European Commission’s OSS guidance, the Non-Union scheme covers services only. Goods sold by non-EU sellers route through IOSS when the consignment is €150 or less, or through Union OSS for movements once the goods are inside the EU.
What Is the €10,000 VAT Threshold?
The €10,000 threshold is a single EU-wide annual limit. It covers intra-EU distance sales of goods plus cross-border TBE services combined, per the European Commission. Below it, a seller established in one member state may charge home-country VAT. Above it, destination-country VAT applies, and OSS makes that manageable.
The threshold has a strict restriction. It applies only to businesses established in a single EU member state. Non-EU sellers get no threshold. Businesses holding stock in more than one country get no threshold either. Both owe destination VAT from the first sale. Destination rates range from 17% in Luxembourg to 27% in Hungary, per the European Commission, so the correct rate depends on the buyer’s location.
What Is IOSS (Import One Stop Shop)?
IOSS covers distance sales of goods imported from outside the EU in consignments with an intrinsic value not exceeding €150. VAT is collected at checkout at the destination country’s rate, so no import VAT is charged at the border. Goods subject to excise duty, such as alcohol and tobacco, are excluded from the scheme, per the European Commission.
Two details matter for valuation and security. “Intrinsic value” excludes transport and insurance charges unless they are already included in the price, so a €140 item can qualify even with shipping added separately. The member state of identification allocates an IOSS number in the fixed format IMxxxyyyyyyz. Share it only with your customs declarant or carrier, because misuse of the number enables fraud. Buyers see a VAT-inclusive price at checkout, and consignments clear customs without the import-VAT stop at the border.
Do I Need OSS, IOSS, or Both?
Use this rule. An EU seller shipping within the EU uses Union OSS. A non-EU business supplying services to EU consumers uses Non-Union OSS. Any seller shipping goods from outside the EU in consignments of €150 or less uses IOSS. Sellers doing both intra-EU sales and low-value imports need both schemes.
Marketplaces change the picture. Under the deemed-supplier rules in Directive (EU) 2017/2455, the platform, not the individual seller, is treated as the supplier for VAT on facilitated sales. If you sell through such a marketplace, it may register and account for the VAT, which shifts who files. Confirm your channel’s setup before registering yourself.
How Do You Register for OSS?
Register through the tax authority portal of your member state of identification. EU businesses use the country where they are established. Eligible non-EU businesses use the country goods are dispatched from. Registration normally takes effect from the start of the next calendar quarter. One registration then covers all 27 member states.
- Confirm your member state of identification and hold a valid VAT number there.
- Choose the scheme: Union or Non-Union.
- Apply through that country’s online OSS portal.
- Charge destination-country VAT on qualifying B2C supplies once registered.
- File one quarterly return and make a single payment through the portal.
How Do You Register for IOSS as a Non-EU Seller?
Most non-EU sellers must appoint an EU-established intermediary. The intermediary registers on your behalf, files the monthly returns, and is jointly liable for the VAT, per Directive (EU) 2017/2455. Only sellers based in a country with a VAT mutual assistance agreement with the EU can register directly. EU-established sellers need no intermediary.
An IOSS intermediary is scheme-specific and differs from a broader fiscal representative, who acts as your VAT proxy for full local registration. UK sellers became third-country sellers after Brexit. The UK signed a VAT mutual assistance agreement, but practice on direct registration varies, so check current Commission guidance before relying on it. Our post-Brexit UK-to-EU VAT guide covers that path.
What Are the OSS and IOSS Filing and Record-Keeping Requirements?
OSS returns are quarterly. IOSS returns are monthly. Both schemes require records kept for 10 years and made available electronically on request to any member state’s tax authority. Corrections to earlier returns go in the current period’s return, not by amending old ones.
| Scheme | Return frequency | Record retention | Source |
|---|---|---|---|
| Union OSS | Quarterly (calendar quarter) | 10 years | European Commission (vat-one-stop-shop.ec.europa.eu) |
| Non-Union OSS | Quarterly (calendar quarter) | 10 years | European Commission |
| IOSS | Monthly | 10 years | European Commission |
How Commenda Helps With OSS and IOSS Compliance
OSS handles your intra-EU B2C VAT in one quarterly return. IOSS handles imports of €150 or less in one monthly return. Both cut many national registrations down to one. Knowing which you need, and staying on top of the deadlines, is where obligations slip.
Commenda’s global indirect tax software tracks your VAT registration obligations and filing deadlines across jurisdictions, so you know exactly what to file and when. It connects to your stack through 100+ enterprise resource planning (ERP), application programming interface (API), and custom integrations, and you can map upcoming due dates with the compliance calendar. For the full walkthrough, read our IOSS and OSS EU VAT compliance guide.
Book a demo to map your EU VAT obligations and find out whether you need OSS, IOSS, or both.
