OSS scheme
One VAT return for EU-wide sales
OSS is a special VAT scheme through which an e-shop reports tax on cross-border sales to EU consumers in one return filed at home, instead of registering in every country. The duty to charge VAT at the customer's national rate begins once sales pass a 10,000 euro threshold.
The threshold and what follows it
Since 1 July 2021 a single threshold of 10,000 euros excluding tax replaced the earlier 35,000 and 100,000 euro limits that each country set for itself. Crucially the threshold is cumulative — every cross-border sale to consumers across all member states counts towards the same figure, not one per country.
Below the threshold a shop can charge its domestic VAT rate. Above it, VAT follows the customer's country: a Hungarian buyer at the Hungarian rate, a German buyer at the German one. Without OSS that would mean VAT registration in every country sold into. OSS is the simplification: one return, one payment, with the states redistributing the amounts between themselves.
What it demands of the shop
The accounting change lands in the software, usually sooner than a merchant expects. The VAT rate stops being a property of the product and becomes a function of product and destination country, so the price has to be recalculated the moment the customer enters an address.
- Rate by destination country, not one rate across the catalogue.
- A decision on whether the final price moves or the margin does — either works, but pick one.
- Reporting broken down by country, not a single combined figure.
- Continuous threshold tracking, so the crossing is not discovered in hindsight.
- The same logic on the invoice, in the email, and in the accounting export.
Why it is not only an accounting topic
The most common failure is leaving VAT to the accountant while the shop spends a year charging the domestic rate. The difference then comes out of the merchant's margin, and at volume it is a noticeable sum.
The second issue is the displayed price. If the rate moves by country, either the customer sees a price different from the catalogue or margin drops on higher-rate markets. That choice should be made deliberately and reflected in pricing. Supporting multiple rates and countries is a standard part of a custom e-shop, and it connects to the shift to electronic invoicing.
Selling into several EU countries?
Explore custom e-shopsFrequently asked questions
Is the threshold counted per country?
No, it is cumulative. All cross-border consumer sales across every member state add up to the same figure, which is why shops cross it earlier than they expect.
Is registering for OSS mandatory?
OSS itself is a voluntary simplification. What is mandatory, once the threshold is passed, is charging VAT at the customer's national rate. Without OSS that means registering for VAT in the individual states, which is considerably harder in practice.
Does OSS cover marketplace sales?
When selling through large platforms the VAT liability may shift to the platform itself. The rules vary by situation, so the specific setup is worth agreeing with a tax adviser before the system is configured.