Key takeaways
- The VAT One Stop Shop lets you declare, in a single country, the VAT due on B2C distance sales across the whole European Union.
- A single €10,000 annual threshold decides whether you charge your own country's VAT or the customer's country VAT.
- The scheme has three parts: Union, non-Union and import (IOSS), the last for imported consignments up to €150.
- In Belgium, OSS registration and returns go through Intervat, the FPS Finance portal.
The VAT One Stop Shop, one portal for e-commerce VAT
When a business sells online to consumers across several EU countries, the VAT due is not always its own country's VAT. Above a certain volume, it is the VAT of the customer's country that applies. Without a simplification, that would mean registering for VAT in every member state where you sell. The VAT One Stop Shop (OSS) exists precisely to avoid this.
In force since 1 July 2021, the OSS lets you declare and pay, in a single member state, the VAT due on B2C distance sales across the entire Union. It extends the mini One Stop Shop (MOSS), in place since 1 January 2015 for TBE services only (telecommunications, broadcasting and electronically supplied services), by widening it to sales of goods and other supplies.
This article sets out who the OSS is for, how the €10,000 threshold works, what its three schemes cover, and how to use it in practice in Belgium.
The single €10,000 threshold: when the OSS applies
Before 2021, each country set its own distance-selling threshold, often €35,000 or €100,000. Those national thresholds were abolished and replaced by a single €10,000 annual threshold valid across the whole Union.
The threshold is calculated on the sum of two flows: intra-Community distance sales of goods and telecommunications, broadcasting and electronically supplied services ("TBE" services). It is not assessed country by country, but as a combined total.
- Below €10,000 (excluding VAT) of these transactions in both the current and the preceding calendar year, and if you are established in a single member state, you may apply your own country's VAT, as for a domestic sale.
- Above €10,000, the VAT due is that of the consumer's country, at its local rate. This is where the OSS becomes useful: it lets you declare that destination VAT in a single return, with no registration in each country.
single annual threshold
goods and TBE services combined
OSS schemes
Union, non-Union and import
IOSS ceiling
intrinsic value of an imported consignment
The three schemes of the One Stop Shop
The One Stop Shop is not a single scheme: it groups three distinct schemes, depending on the nature of the transaction and where the seller is established.
| Union scheme | Non-Union scheme | Import scheme (IOSS) | |
|---|---|---|---|
| Distance sales of goods within the EU | |||
| B2C supplies of services | |||
| Goods imported from a non-EU country (≤ €150) | |||
| Return frequency | Quarterly | Quarterly | Monthly |
The Union scheme covers distance sales of goods dispatched within the EU and cross-border B2C supplies of services made by a seller established in the Union. It is the scheme most used by Belgian e-commerce businesses. The non-Union scheme applies to services supplied by businesses established outside the EU. The import scheme, or IOSS, concerns goods imported from a non-EU country.
IOSS: import VAT on consignments up to €150
The IOSS (Import One Stop Shop) is the only genuinely new scheme created in 2021. It applies to distance sales of goods imported from a non-EU country in consignments whose intrinsic value does not exceed €150.
Its benefit is twofold. On one hand, it lets VAT be collected at the point of sale and declared through a single portal, rather than charged to the customer on import. On the other, it makes the transaction clearer for the buyer, who pays a VAT-inclusive price with no surprise charge on delivery. Unlike the Union and non-Union schemes, the IOSS return is monthly.
For sales to customers located outside the Union, the OSS does not apply: the transaction then follows the rules for exports, described in Invoicing a customer established outside the EU.
Filing OSS through Intervat in Belgium
In Belgium, OSS registration and returns are handled on Intervat, the FPS Finance portal, in a dedicated module separate from the periodic return. Registration is done once; the return recurs each period.
- 1
Register for the OSS scheme
OnceFrom Intervat, choose the right scheme (Union, non-Union or import) and register the business with FPS Finance.
- 2
Break VAT down by country
OngoingFor each eligible sale, track the customer's country and the applicable local VAT rate.
- 3
Submit the OSS return
Each periodQuarterly for the Union and non-Union schemes, monthly for the IOSS, even with no transaction in the period.
- 4
Pay the VAT due
At the deadlineA single payment to the Belgian administration, which then allocates the amounts between the member states concerned.
The OSS return does not replace the Belgian periodic VAT return: the two coexist. The rate to apply depends on the country of destination, which means knowing the local rates; for Belgium, see VAT rates in Belgium.
What to track for a correct OSS return
The annual total of distance sales and TBE services
To place your activity against the €10,000 threshold.
The country of destination of each B2C sale
It determines the applicable VAT rate.
The local VAT rate of the customer's country
Rates vary from one member state to another.
The line between OSS transactions and domestic ones
Only eligible cross-border sales go into the OSS.
E-commerce invoicing that tracks VAT by country
YouInv structures your invoices and separates your cross-border sales, so your OSS return is easy to prepare.
What the OSS changes for your business
The One Stop Shop does not change the VAT rules themselves: above the threshold, the customer's country VAT is due, with or without the OSS. What it changes is the administrative burden. Without it, crossing the threshold in three countries would mean three registrations and three local returns. With it, a single registration and a single return are enough.
The OSS stays optional: nothing forces you to use it, but the alternative — registering in each country of destination — is markedly heavier. For an e-commerce business selling above €10,000 into several EU countries, it is the reference scheme. The point to check on the tooling side: invoicing that clearly identifies the customer's country and the applicable rate, so the return needs no re-keying.
Further reading
- Intra-Community VAT: invoicing between EU businesses: the B2B rules, complementary to the OSS, which targets B2C.
- The periodic VAT return in Belgium: the regular return, which coexists with the OSS.
- VAT rates in Belgium: to place the rates that apply by country.
The reference sources prevail: the FPS Finance OSS portal and the European Commission OSS portal.
What is the VAT One Stop Shop (OSS)?
The VAT One Stop Shop (OSS) is an EU scheme, in force since 1 July 2021, that lets a seller declare and pay in a single member state the VAT due on B2C distance sales to consumers in other EU countries, instead of registering for VAT in each country of destination.
What is the €10,000 OSS threshold?
A single EU-wide threshold of €10,000 per year, calculated on the combined total of intra-Community distance sales of goods and TBE services (telecommunications, broadcasting and electronically supplied services). Below it you may apply your own country's VAT; above it the customer's country VAT applies and the OSS lets you declare it in one place.
What is the difference between OSS and IOSS?
The OSS covers distance sales of goods already located in the EU and cross-border B2C services. The IOSS (Import One Stop Shop) is a separate scheme for goods imported from a non-EU country in consignments with an intrinsic value not exceeding €150.
How do you file OSS in Belgium?
OSS registration and returns are handled in Belgium through Intervat, the FPS Finance portal. The OSS return is quarterly for the Union and non-Union schemes, and monthly for the import scheme (IOSS).
Is the VAT One Stop Shop mandatory?
No. The OSS is an optional simplification. A business may instead register for VAT in each country of destination, but the OSS avoids those multiple registrations.
