EU OSS Registration
The EU One Stop Shop (OSS) scheme, introduced July 2021, allows businesses selling digital services to EU consumers (B2C) to register for VAT in one EU country and remit VAT for all EU consumer sales through a single return — eliminating the need for separate VAT registrations in each member state.
The EU One Stop Shop (OSS) scheme, introduced 1 July 2021, is a single VAT registration mechanism for businesses selling digital services or goods to consumers (B2C) across the EU. Instead of registering for VAT separately in every EU country where you have consumer customers, you register for OSS in one EU member state and file a single quarterly return there, covering all your EU consumer sales. The tax authorities distribute the VAT to the correct member states.
Who needs OSS registration
- →EU-based businesses selling digital services to EU consumers in other member states, once they exceed €10,000 in annual cross-border consumer sales
- →Non-EU businesses selling digital services to EU consumers — the €10,000 threshold does not apply; OSS (or IOSS for goods) is required from the first sale
- →Businesses previously registered under the old MOSS (Mini One Stop Shop) scheme — OSS replaced MOSS in July 2021
Note
OSS only applies to B2C (business-to-consumer) sales. If your EU customer has a valid VAT number and you are making a B2B cross-border supply, reverse charge applies instead — OSS is irrelevant for that transaction. This is why VAT number validation is critical: it determines which regime applies.
OSS vs the pre-2021 system
Before OSS, the threshold was €35,000–€100,000 per country (varying by member state) — below that, you charged your home country's VAT rate on consumer sales. Above it, you had to register locally. OSS replaced this with a single €10,000 EU-wide threshold for EU businesses (first cross-border sale for non-EU businesses) and a single registration in one member state.
How OSS interacts with VAT number validation
OSS and VAT number validation work together at the checkout step. When a customer claims to be a business by providing a VAT number, you validate it via VIES. If valid: reverse charge applies — no OSS needed, zero-rate the invoice. If invalid or not provided: treat as B2C — apply the appropriate EU VAT rate and report via OSS. This validation step is the gate between two completely different VAT regimes.
OSS filing and reporting
- →File quarterly — return due by the end of the month following each quarter (Q1 return due April 30)
- →Report B2C sales by destination country and applicable VAT rate
- →Pay in euros to your country of registration — the OSS portal distributes to other member states
- →Keep records for 10 years
- →OSS does not cover B2B transactions, imports of goods above €150, or sales to customers in your own member state
Frequently asked questions
What is EU OSS registration?
OSS (One Stop Shop) is an EU VAT simplification scheme that lets businesses selling digital services or goods to EU consumers register for VAT in one EU country instead of registering separately in every country where they have consumers. A single quarterly return covers all EU consumer sales, with the OSS authority distributing VAT to the correct member states.
Does my SaaS business need OSS registration?
If you sell to EU consumers (individuals without a VAT number), yes — once you exceed €10,000 in annual cross-border consumer sales (or from the first sale if you are based outside the EU). If you sell exclusively to EU businesses (validated VAT numbers), OSS does not apply — reverse charge handles those transactions and no OSS registration is needed.
Does OSS apply to B2B transactions?
No. OSS exclusively covers B2C supplies. For B2B cross-border supplies within the EU (where your customer has a valid VAT number), the reverse charge mechanism applies and OSS is irrelevant. This is why validating customer VAT numbers at checkout determines which regime applies: B2B → reverse charge; B2C → OSS.
Can non-EU businesses use OSS?
Yes — non-EU businesses can register for OSS (specifically the Non-Union OSS scheme) to cover sales of digital services to EU consumers. The €10,000 threshold does not apply; non-EU businesses must register for OSS before making their first B2C sale to an EU consumer. Registration is done with any EU member state's tax authority of your choice.
Validate EU VAT numbers via API
100 free validations/month. No credit card. Sub-10ms cached responses.
Related resources
Related terms
Reverse Charge VAT
A VAT accounting mechanism where the buyer — not the seller — accounts for VAT on a cross-border B2B supply. The seller invoices at zero-rate; the buyer self-assesses VAT in their own country. EU law requires VAT number validation before applying it.
B2B VAT Exemption
Zero-rate treatment applied to cross-border EU B2B supplies where the buyer holds a valid VAT number in a different member state. Not a true exemption — the transaction is still VAT-applicable; the buyer self-accounts via the reverse charge mechanism.
EU VAT Number
A unique identifier issued by a national EU tax authority to businesses registered for value added tax. It enables zero-rate treatment on cross-border B2B transactions and is the basis for all EU VAT compliance.