You sell online to consumers in several European countries: do you need to register for VAT in each of them? Since the e-commerce VAT reform, the OSS and IOSS one-stop shops let you, under conditions, declare and pay that VAT in a single place.
This article explains the difference between OSS and IOSS, the thresholds to check, the steps to register and the links with your other obligations, including VAT registration in France and the role of a fiscal representative in France.
OSS: one return for your intra-EU B2C sales
The OSS (One-Stop Shop) scheme lets you declare and pay, through a single entry point, the VAT due on all your intra-EU distance sales of goods and certain services supplied to consumers. It avoids VAT registration in each Member State of consumption, while applying the VAT rate in force in the customer’s country.
In practice you file one OSS return in a single Member State, which then shares the VAT among the countries of consumption. See our page on OSS / IOSS.
IOSS: simplifying VAT on low-value imports
For distance sales of goods imported from non-EU countries with an intrinsic value of up to €150, the IOSS (Import One-Stop Shop) scheme lets you collect VAT at the point of sale and declare it in a single return, avoiding import VAT formalities for each parcel.
In some cases, notably for sellers established outside the EU, an intermediary established in the EU is required to use IOSS.
OSS or IOSS: which scheme fits which situation?
| Criterion | OSS | IOSS |
|---|---|---|
| Goods | Goods shipped from one Member State to another | Goods shipped from a non-EU country |
| Value limit | €10,000 EU-wide threshold for B2C intra-EU sales (see below) | €150 per consignment |
| Return frequency | Quarterly | Monthly |
What to check before registering
- The €10,000 annual threshold for intra-EU distance sales and B2C electronic services, above which the VAT of the destination country applies.
- Goods excluded from the scheme (excise products, in particular).
- Consistency between your OSS/IOSS returns and your other VAT obligations (national returns, Intrastat/EMEBI).
- Keeping proof of delivery and transport, required in an audit.
Registering in practice
A business established in the EU registers for the Union scheme in its Member State of establishment. A business established outside the EU that supplies services to consumers can use a separate non-Union scheme and picks the Member State where it registers. In both cases, the tax authority of that country receives the return and the payment, then passes the VAT on to the countries of consumption.
Remember that OSS only covers the sales it is designed for: your domestic sales, and any local obligations in a country where you hold stock, remain under the usual national rules.
Steps to use the one-stop shop
Keep your evidence (delivery, transport and customer-location proof). To explore the links with other filings, see our pages on VAT returns and EMEBI / DES.
How Hanoutax can help
Hanoutax is an indirect-tax agent. Under a mandate, it helps e-commerce businesses pick the most suitable scheme for their activity, register with the competent authority and file their quarterly or monthly OSS/IOSS returns. If an intermediary or accredited representative is required (notably for IOSS), Hanoutax coordinates the set-up with them.
Hanoutax acts as a French VAT agent under power of attorney, which is different from a fiscal representative. See also our article on e-invoicing and intra-EU VAT.
FAQ
What is the difference between OSS and IOSS?
OSS covers distance sales of goods between Member States and certain services to consumers. IOSS covers goods imported from non-EU countries with an intrinsic value of up to €150. The returns are filed at different frequencies.
Is the €10,000 threshold set per country?
No. It is assessed across all your intra-EU distance sales of goods and B2C electronic services in the EU. Above it, the customer’s country VAT applies, and OSS lets you declare it in one place.
Is using OSS compulsory?
No, it is optional. Without it, you generally need to register for VAT in each country of consumption concerned. The choice depends on your sales volume and administrative resources.
Can a non-EU seller use IOSS?
Yes, but in principle it must appoint an intermediary established in the EU, with some exceptions. The exact conditions depend on its situation and should be checked before registering.
Which goods are excluded from IOSS?
Excise products are among the goods excluded. Consignments above €150 are also outside IOSS and follow the usual import rules.
Simplify VAT on your online sales?
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
