The One-Stop Shop (OSS) and its predecessor MOSS (Mini One-Stop Shop) simplify VAT compliance for businesses selling digital services to EU consumers from a single registration point.
What is OSS?
The One-Stop Shop (OSS) lets businesses register for VAT in one EU country and report all EU sales through that single registration. Without OSS, you'd need to register in every country where you have customers. OSS covers B2C sales of goods and services across the EU.
When OSS Applies
OSS applies to: digital services (software, e-books, streaming) sold to EU consumers, distance sales of goods to EU consumers (above threshold), and certain services supplied to non-taxable persons. The threshold for goods is €10,000 in annual cross-border sales to all EU countries combined.
OSS Filing Requirements
Under OSS, you file quarterly VAT returns listing sales to each EU country. You charge each customer their local VAT rate and report the totals by country. Payment is made to your registration country, which distributes it to other countries. Records must be kept for 10 years.
Determining Customer Location
You must determine where your customer is located to charge the correct VAT rate. For digital services, use two non-contradicting pieces of evidence: IP address geolocation, billing address, bank location, or mobile country code. Our API helps by providing the correct rate once you know the customer's country.