One-Stop-Shop (OSS) – EU VAT Simplification

The One-Stop-Shop (OSS) is an EU-wide VAT simplification scheme effective from 1 July 2021, allowing businesses to declare and remit VAT on cross-border B2C supplies of goods and services through a single online portal in their member state of establishment. This removes the need for multiple VAT registrations across EU countries where turnover is generated.

• Scope: Cross-border B2C services, intra-Community distance sales of goods, certain domestic supplies via online marketplaces
• Threshold: EU-wide threshold of EUR 10,000 for cross-border B2C turnover (TBE services and distance sales of goods); below this, home-country VAT rate applies
• Three schemes: EU scheme, non-EU scheme, import scheme (IOSS)
• Successor: Replaces and expands the Mini One-Stop-Shop (MOSS)

The ViDA package (VAT in the Digital Age), published in the EU Official Journal on 25 March 2025, will extend the OSS framework from July 2026 to all B2C goods supplies and from July 2028 to transfers of own goods between Member States.

The OSS is the evolution of the Mini One-Stop-Shop (MOSS), which applied from 2015 exclusively to electronically supplied services, telecommunications and broadcasting services. MOSS was extended to a significantly broader scope under the EU VAT Action Plan of 2016 and Directive (EU) 2017/2455.

Directive (EU) 2019/1995 introduced the marketplace deemed-supplier rules, while Implementing Regulation (EU) 2019/2026 set out the procedural implementing details (registration, returns, record-keeping). Due to the COVID-19 pandemic, the originally planned 1 January 2021 entry into force was postponed by six months to 1 July 2021 through Council Decision (EU) 2020/1109 of 20 July 2020.

On 25 March 2025, the ViDA package (VAT in the Digital Age) was published in the EU Official Journal – the most significant OSS reform since 2021. From July 2026, the Union OSS scheme will cover all B2C goods supplies; from July 2028, transfers of own goods between Member States will also be included.

The OSS covers:

• Cross-border B2C services of all kinds (EU scheme for EU-established businesses)
• Intra-Community distance sales of goods (e.g. e-commerce)
• Supplies via online marketplaces (deemed supplier rules)
• Non-EU-established businesses may use the non-EU scheme for B2C services in the EU

B2B transactions and supplies with assembly/installation are excluded.

• Registration on the OSS portal of the member state of establishment
• Quarterly OSS VAT returns (even if nil)
• Single VAT payment to the registration state; distribution to consumption member states by the authorities
• Application of VAT rates of each consumption member state
• Record-keeping for 10 years
• EU-wide EUR 10,000 threshold: Covers the combined total of cross-border B2C TBE services and intra-Community distance sales of goods; below the threshold, home-country VAT rate applies, but voluntary opt-in for destination-country VAT rate is available

3 corrections:
- COVID postponement date in key_dates incorrect (2020-12-01 instead of 2020-07-20)
- EUR 10,000 threshold incorrectly labelled as 'micro-businesses'
- Official URL returns 404 error
2 updates:
- No mention of ViDA package (March 2025)
- last_amended outdated — ViDA package not reflected
3 clarifications.