Since July 1st, 2021, the European Union (EU) has reshaped VAT rules for cross-border B2C transactions. New distance selling thresholds, new reporting solutions, extended marketplace liability rules with the introduction of the deemed supplier regime, etc. All of these new rules have changed the way international businesses sell to consumers across Europe. For businesses trading into the EU, VAT compliance has become both more centralised but also more technical.
Make your EU VAT obligations easier to manage
To support these regulatory changes, the EU introduced simplified reporting systems under the One Stop Shop framework. There are three separate schemes: the OSS Union Scheme, the OSS Non-Union Scheme and the Import One Stop Shop Scheme (IOSS).
These schemes allow e-commerce businesses to declare VAT due in multiple EU Member States through a single portal and, in certain situations, avoid the need for separate VAT registrations in each country of destination.
However, this simplification has its limits. The One Stop Shop is restricted to certain types of transactions and the VAT treatment can vary depending on the nature of the supply, the movement of goods, and the sales channel involved. The use of a marketplace, for example, may affect which entity is responsible for accounting VAT. In practice, businesses often need to manage both One Stop Shop reporting and local VAT registrations.
If not handled correctly, these schemes can result in costly mistakes, reporting issues, or even VAT losses.
It is also worth noting that these regimes only apply within the European Union. For sales into countries such as Switzerland, the United Kingdom, or Norway, a local VAT registration may still be required.
Our VAT experts can help you identify your obligations and determine the most appropriate compliance set-up for your business.
Eligibility: OSS EU, OSS non-EU, or IOSS?
Scheme | Eligibility | Threshold |
OSS Union Scheme | EU Sellers: Intra-EU distance sales of goods and services. Non-EU Sellers: Intra-EU distance sales of goods (i.e. : Amazon FBA). | EU Sellers: €10,000 / year. Non-EU Sellers: none, registration required from the first sale. |
OSS Non-Union Scheme | Non-EU Sellers: Intra-EU distance sales of services (digital services, etc.). | None: Registration required from the first sale. |
IOSS Scheme | EU & Non-EU Sellers: Distance sales of imported goods with a value lower than €150. |
None, only a limit of parcel’s value |
Our OSS/IOSS Solutions and Pricing
EASYTAX offers end-to-end support for businesses looking to manage their EU VAT obligations efficiently, with straightforward pricing and practical guidance at every stage. Reviewing your sales model carefully is essential, as the channel through which you sell may affect which party is responsible for accounting for and paying the VAT. Where marketplaces are involved, the applicable rules can, in some cases, shift the VAT liability from the seller to the platform. A clear understanding of these rules is key to avoiding reporting errors, duplicate declarations, or double payment of VAT. Timely payment remains equally important, as late payment may trigger action from the relevant EU Tax Authorities, together with interest and potential penalties.
OSS:
ONE Stop Shop scheme
(UNION / NON-UNION)
From €690 excl. VAT/year – Ideal for intra-EU B2C sales.
This service includes:
- Initial review of your transactions and VAT obligations.
- Registration under the required OSS scheme(s) ;
- Provision of reporting templates tailored to your needs ;
- Preparation and submission of quarterly OSS returns ;
- Transmission of payment instructions to ensure VAT is paid on time ;
- Monitoring of filing and payment deadlines to help avoid late payment interest and follow-up from the relevant Tax Authorities.
IOSS : Import One Stop Shop scheme
From €190 excl. VAT / month – Designed for distance sales of imported goods with a value less than €150 (goods shipped directly from a non-EU location to EU consumers) Ideal for distance sales of imported goods ≤ €150.
This service includes:
- Initial review of your transactions and VAT obligations.
- Registration under the IOSS scheme ;
- Provision of reporting templates tailored to your needs ;
- Appointment of Easytax as your IOSS intermediary ;
- Preparation and submission of monthly IOSS returns ;
- Monitoring of filing and payment deadlines to help avoid late payment interest and follow-up from the relevant Tax Authorities.
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per year
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per month
Our 4-Step Process
VAT review &
scoping
OSS / IOSS registration
Periodic OSS/IOSS returns
Ongoing compliance monitoring
- The OSS Union Scheme is used to report VAT on certain B2C supplies made within the EU through a single return. It is mainly relevant for intra-EU distance sales of goods and can also apply to certain cross-border B2C services. This scheme is meant for both EU and non-EU businesses.
- The OSS Non-Union Scheme is designed for non-EU businesses supplying services to private consumers in the EU. It allows those suppliers to declare VAT due in different Member States through one registration, without having to register separately in each country where their customers are located.
- The IOSS Scheme is a separate scheme for distance sales of imported goods with a value lower than €150. The goods must come from a non-EU location and shipped directly to EU consumers. It allows VAT to be collected at the point of sale and declared through a single monthly return.
Not necessarily. OSS and IOSS are optional simplification schemes, but they are often the most practical way to manage VAT obligations linked to cross-border B2C sales. They allow businesses to declare and pay VAT through a single registration, rather than having to register separately in multiple EU Member States.
In some cases, a business may use only one scheme. In others, both schemes may be relevant at the same time, for example where the business makes intra-EU B2C sales and also sells imported goods to EU consumers in consignments not exceeding EUR 150.
- For OSS, using the scheme can significantly reduce the number of local VAT registrations required for certain intra-EU B2C supplies. However, where the scheme does not apply, or where local obligations remain, separate VAT registrations may still be necessary.
- For IOSS, using the scheme means VAT is collected at the point of sale for eligible imported consignments not exceeding €150. If IOSS is not used, import VAT is generally collected when the goods enter the EU, which may result in additional charges for the customer at delivery.
A proper assessment is therefore key to understanding your obligations. Choosing the right scheme, or deciding not to use one, depends on your sales transactions, your stock location, your sales channels and the countries involved.
It actually depends on the scheme used and on where your business is established.
- For the IOSS, non-EU businesses need to appoint an EU-established intermediary in order to use the scheme ;
- For the Non-Union OSS scheme, an intermediary is not required. This scheme is available to non-EU businesses supplying services to private consumers in the EU through a single OSS registration.
- For the OSS Union scheme, the answer depends on the seller. If the business is established in the EU, no intermediary is required. If the business is established outside the EU but uses the Union scheme for eligible transactions, an intermediary may be required.
Even where an intermediary is not legally required, many businesses still choose to work with a VAT agent or compliance partner to help manage registrations, filings and payment deadlines, and to reduce the risk of reporting errors. This is often the case where the transaction flows are complex or several Member States are involved.
No. The fact that a marketplace is involved does not mean that it takes over all of your VAT compliance obligations.
In certain cases, the marketplace may be treated as the deemed supplier for VAT purposes. Where this happens, the platform becomes liable to collect and remit the VAT on the relevant transaction. This may apply, for example, to certain distance sales of imported goods in consignments not exceeding EUR 150 and to certain supplies made within the EU by non-EU sellers.
However, this should not be confused with a full transfer of the seller’s VAT obligations. Even where the marketplace is liable for the VAT on specific sales, the seller may still have other obligations depending on its supply chain, stock location, sales flows and registration status. A proper review is therefore essential to determine which transactions fall under the deemed supplier rules and which remain reportable by the seller.
OSS returns are filed quarterly while IOSS returns are filed monthly. In both cases, the return must be submitted on time and the corresponding VAT must be received by the Tax Authorities of the Member State in which the seller is identified by the end of the month following the relevant reporting period. Late receipt of payment may trigger interest and follow-up from the tax authorities.