Before 1 July 2021, an online seller shipping to buyers in several EU countries needed a separate value-added tax (VAT) registration and a separate return in each one. That paperwork stalled cross-border growth for small and mid-sized shops.
The EU VAT e-commerce package replaced that burden with two consolidated schemes: the One Stop Shop (OSS) and the Import One Stop Shop (IOSS). One registration, one return, VAT remitted to all 27 member states. The European Commission’s One Stop Shop portal confirms both launched on 1 July 2021. For a plain-language primer, see Commenda’s guide to what OSS and IOSS are.
What Are OSS and IOSS?
OSS lets a business report intra-EU business-to-consumer (B2C) cross-border sales on a single return filed in one member state. IOSS does the same for VAT on imported goods valued at €150 or less. Both launched on 1 July 2021 under the EU VAT e-commerce package, per the European Commission. OSS is an umbrella over two schemes; IOSS is a third, separate scheme.
The package also abolished the €22 low-value import VAT exemption. Before July 2021, imports under €22 entered the EU VAT-free, which undercut EU sellers and leaked revenue. The European Commission’s low-value consignment rules confirm every import is now VAT-liable regardless of value. The legal basis is Council Directive (EU) 2017/2455. IOSS lets sellers collect that VAT at checkout instead of buyers paying it at the border.
What Is the Difference Between IOSS and OSS?
OSS covers intra-EU B2C sales and is filed quarterly. IOSS covers imports of consignments valued at €150 or less from outside the EU and is filed monthly. Neither return allows input VAT deduction. The table below compares scope, users, collection timing, thresholds, frequency, and customs treatment, per the European Commission’s One Stop Shop portal.
| Feature | OSS | IOSS | Source |
|---|---|---|---|
| Scope | Intra-EU B2C cross-border sales of goods and services | Distance sales of imported goods ≤€150 | European Commission |
| Who can use it | EU businesses; non-EU businesses for certain goods and services | Any seller or deemed-supplier marketplace | European Commission |
| VAT collected | At the point of supply within the EU | At checkout, before goods enter the EU | European Commission |
| Threshold | €10,000 annual for single-country EU sellers | €150 intrinsic value per consignment | European Commission |
| Return frequency | Quarterly | Monthly | European Commission |
| Customs treatment | Standard rules; not an import scheme | Green lane clearance with a valid IOSS number | European Commission |
| Input VAT deduction | Not allowed on the return | Not allowed on the return | European Commission |
How Did MOSS Become OSS?
The Mini One Stop Shop (MOSS) became OSS on 1 July 2021. MOSS had operated since 1 January 2015 and covered only B2C digital, telecom, and broadcasting services. OSS widened the scope to intra-EU B2C distance sales of goods and all cross-border B2C services, per the European Commission, so physical-goods sellers now use the same single-return mechanism that once existed only for digital services.
What Is the Difference Between Union OSS and Non-Union OSS?
Non-Union OSS covers only B2C services supplied by non-EU businesses to EU consumers. It never covers goods. Union OSS covers intra-EU distance sales of goods plus cross-border B2C services by EU businesses. A non-EU seller holding stock in EU warehouses makes intra-EU sales, so those fall under Union OSS, not Non-Union OSS.
Fulfilment by Amazon (FBA) inventory is the common example. Stock dispatched from an EU warehouse is an intra-EU distance sale under Union OSS. The same seller uses IOSS separately for direct-to-consumer imports of €150 or less shipped from outside the EU. Sellers warehousing goods in Europe should review the VAT risks of holding stock in the EU.
| Scheme | Who can use it | What it covers | Return frequency | Source |
|---|---|---|---|---|
| Union OSS | EU businesses, plus non-EU businesses for certain goods | Intra-EU B2C distance sales of goods; cross-border B2C services | Quarterly | European Commission |
| Non-Union OSS | Non-EU businesses only | B2C services supplied to EU consumers | Quarterly | European Commission |
| IOSS | Any seller or deemed-supplier marketplace | Imported goods ≤€150 | Monthly | European Commission |
What Is the €10,000 VAT Threshold for Intra-EU Sales?
A business established in a single EU member state may charge home-country VAT until its combined intra-EU B2C distance sales of goods and cross-border telecom, broadcasting, and electronic (TBE) services pass €10,000 in a calendar year. Above that, destination-country VAT applies and OSS handles the reporting, per the European Commission. Non-EU sellers get no threshold; they charge destination VAT from the first sale.
Destination VAT means the buyer’s national rate applies, and those rates vary widely across the EU.
| Country | Standard VAT rate (2026) | Source |
|---|---|---|
| Luxembourg | 17% (lowest in the EU; cut to 16% in 2023, reverted to 17% in 2024) | European Commission VAT rates |
| Hungary | 27% (highest in the EU) | European Commission VAT rates |
| EU average | 21.9% | Tax Foundation, 2026 |
What Is the €150 IOSS Import Threshold?
IOSS applies only to consignments with an intrinsic value of €150 or less, per the European Commission. Intrinsic value excludes transport, insurance, and taxes unless they are bundled into the price and not shown separately. €150 is also the customs duty exemption line, so IOSS-eligible goods owe VAT but no duty. Above €150, IOSS cannot be used.
Above €150, standard import procedures apply. Import VAT, and possibly customs duty, falls due at the border. The importer or the carrier usually handles it. Splitting one consignment to fit under €150 is non-compliant when it is genuinely a single consignment.
How Do Marketplace Deemed Supplier Rules Work?
Electronic interfaces such as Amazon, eBay, and Etsy become the deemed supplier liable for VAT on goods valued at €150 or less imported and sold through the platform, and on any goods a non-EU seller sells to EU consumers through the platform. Council Directive (EU) 2019/1995 set these rules. Many small marketplace sellers therefore need no IOSS number of their own.
Shipments clear under the marketplace’s IOSS number. Sellers on their own storefront, such as Shopify or WooCommerce, still need their own registration. See Commenda’s guides to eBay VAT in Germany and Etsy VAT in the Netherlands for platform specifics.
How Do You Register for OSS VAT?
EU-established businesses register through the online OSS portal of their home member state’s tax authority. Non-EU businesses using Non-Union OSS register directly through the portal of any member state they choose. That registration is direct and needs no intermediary; the intermediary requirement applies to IOSS only. Registration takes effect from the first day of the next quarter.
In certain first-supply cases, registration takes effect immediately. The European Commission’s One Stop Shop portal links each national tax authority portal.
How Do You Register for IOSS and Get an IOSS Number?
EU businesses register directly through their home state’s IOSS portal. Non-EU businesses must appoint an EU-established intermediary who registers on their behalf and receives the IOSS number, unless they are established in a country with an EU mutual assistance agreement (Norway is the notable example). Each business receives one IOSS number valid across all 27 member states.
The IOSS number is confidential. Share it only with the customs declarant or carrier. Leaked numbers get abused to clear goods VAT-free, and the registered business carries the liability. The European Commission’s IOSS registration page covers the steps.
Do Non-EU Sellers Need a VAT Intermediary for IOSS?
Yes, unless the seller is established in a country with an EU mutual assistance agreement, such as Norway. EU-established sellers never need one. The intermediary must be EU-established and is jointly and severally liable for the VAT owed. That liability is why intermediaries charge fees and run due diligence before taking on a client.
The intermediary handles registration, files the monthly returns, and remits payment. When choosing one, weigh liability coverage, fee structure, e-commerce platform integrations, multi-country coverage, and reputation. Commenda’s guide to EU VAT compliance for non-EU sellers walks through the options.
When Are OSS and IOSS Returns Due?
OSS returns are quarterly, due by the end of the month after the quarter. IOSS returns are monthly, due by the end of the month after the reporting month, with payment due the same day. The European Commission publishes the fixed OSS deadlines. Nil returns are still required, even for a period with zero sales.
| Return period | Filing deadline | Source |
|---|---|---|
| OSS Q1 (Jan–Mar) | 30 April | European Commission |
| OSS Q2 (Apr–Jun) | 31 July | European Commission |
| OSS Q3 (Jul–Sep) | 31 October | European Commission |
| OSS Q4 (Oct–Dec) | 31 January | European Commission |
| IOSS (each month) | End of the following month | European Commission |
Errors are corrected in a later return, not by amending the original, within a three-year window. Neither OSS nor IOSS returns allow input VAT deduction. Filers recover input VAT through domestic VAT returns where registered, or via refund claims under the EU 8th Directive (EU businesses) or 13th Directive (non-EU businesses). A compliance calendar helps track the dates.
What Is Postponed VAT Accounting?
Postponed VAT accounting (PVA) lets an importer account for import VAT on its regular VAT return instead of paying it at the border. The cash never leaves and comes back. PVA matters for consignments above €150 or otherwise outside IOSS scope. Availability and conditions are set by each member state, so check the national tax authority before relying on it.
PVA and IOSS solve different value bands. IOSS collects VAT at checkout for goods €150 or less. PVA defers import VAT to the domestic return for higher-value goods. Country rules differ, so confirm current conditions with the relevant national tax authority. Commenda’s France IOSS registration guide covers one country’s approach.
How Does Green Lane Customs Clearance Work with IOSS?
A valid IOSS number transmitted in the customs declaration signals that VAT was already collected at checkout. The consignment then clears through the simplified green lane without VAT collection at the border. That avoids customs delays and the handling fees carriers charge buyers on delivery. Without IOSS, the carrier collects VAT from the recipient, often plus a fee.
VAT-inclusive pricing at checkout means the buyer sees the full price up front. No surprise charge lands when the parcel arrives. The European Commission’s One Stop Shop portal explains how customs systems read the IOSS number.
What Are the VAT Record Keeping Requirements in the EU?
OSS and IOSS registrants must keep transaction records for 10 years and make them available electronically to any member state on request, per the European Commission. Records include invoices, evidence of the customer’s location, and shipment and delivery proofs. Failure to keep them can lead to exclusion from the scheme.
How Commenda Simplifies IOSS and OSS Compliance
Commenda’s global indirect tax platform tracks your VAT registration obligations, filing deadlines, and returns across every jurisdiction from one dashboard. You get certainty that your EU VAT compliance is handled: OSS quarterly returns, IOSS monthly returns, and the records behind them, in one place.
The platform connects to your existing stack through 100+ enterprise resource planning (ERP), application programming interface (API), and custom integrations, so order and VAT data flow in without manual entry. You can also verify tax IDs across countries and track every filing date with the compliance calendar. Book a demo to get a free assessment of your EU VAT registration and filing obligations.
