Since the July 2021 e-commerce VAT reform, distance sales of goods to consumers in the European Union are subject to a single annual threshold of €10,000, across all EU countries combined. Beyond this threshold, VAT is due in the country of consumption, which would in theory require registration in each destination country.
The OSSAn EU scheme allowing a single quarterly return to declare and pay VAT due on distance sales across several EU countries. Learn more → (One Stop Shop) allows this VAT to be declared and paid through a single quarterly return. The IOSSA scheme allowing VAT to be collected at the point of sale on low-value goods (up to €150) imported and sold to EU consumers. Learn more → (Import One Stop Shop) regime applies to imported low-value consignments, up to €150, allowing VAT to be collected at the point of sale rather than at import.
Are you affected?
- E-commerce seller selling to consumers in several EU countries
- Distance sales turnover exceeding the EU-wide €10,000 threshold
- Import of low-value goods (up to €150) sold to EU consumers
- Marketplace or platform facilitating cross-border distance sales
How we proceed
Determining the applicable regime
Reviewing your sales flows to determine whether OSS, IOSS, or both apply to your business.
One-Stop Shop registration
Preparing and filing the registration with the relevant authority.
Periodic return
Filing quarterly (OSS) or monthly (IOSS) returns depending on the regime.
Country-by-country threshold monitoring
Ongoing monitoring of your sales volumes by country to anticipate any change in applicable regime.
Frequently Asked Questions
What's the difference between OSS and IOSS?
Does the €10,000 threshold apply per country or overall?
The €10,000 threshold is a single, EU-wide threshold covering all your distance sales combined — not a separate threshold per country.
Does the IOSS €150 threshold apply per order or per year?
It applies to the intrinsic value of each individual parcel, not to a cumulative annual total.
Do I need to register in every EU country?
No — that's precisely the point of the One Stop Shop: a single OSS or IOSS return covers all the EU countries affected by your sales.
Does an Amazon FBA seller need to use OSS?
An FBA seller storing goods in several EU countries remains subject to local registration rules in those storage countries; OSS applies in addition, for distance sales to other EU countries.
Does a marketplace handle VAT on my behalf?
In some cases the marketplace is deemed liable for VAT (notably for IOSS or certain facilitated sales), but this doesn't automatically remove the seller's own reporting obligations.
What happens if I exceed the threshold during the year?
Once the €10,000 threshold is exceeded, VAT becomes due in the country of destination on subsequent sales, unless you opt for the OSS scheme to centralise this reporting.