“Every time I think I understand OSS…”: the EU €10,000 threshold and the quarterly OSS return, in plain words

Last updated 13 Oct 2026 · European Union

Short answer. If you sell goods at a distance or electronic services to consumers in other EU countries, there is one EU-wide threshold of EUR 10,000. Below it, those sales may stay subject to VAT in your own Member State; above it, VAT is due in each customer's country. The One Stop Shop (OSS) lets you declare and pay all of that through one quarterly return in one Member State, due by the end of the month after the quarter, and you must file a nil return for a quarter with no sales (European Commission OSS guide).

“The previous thresholds for distance sales of goods within the EU have been abolished and replaced by a new EU-wide threshold of EUR 10 000.”
— European Commission, VAT e-Commerce One Stop Shop (checked 13 Oct 2026)

Why OSS exists

Since 2021, B2C VAT in the EU is charged where the customer is. Without OSS, a small seller crossing the threshold would need a VAT registration in every country it sells to. OSS replaces that with one registration and one return in your Member State of identification, which forwards the money and the details to each country.

Which scheme?

Scheme	For	Return period
Union scheme	EU-established businesses: B2C services in Member States where they are not established, and intra-EU distance sales of goods (non-EU sellers can use it only for goods dispatched within the EU)	Calendar quarter
Non-Union scheme	Businesses not established in the EU, for B2C services in the EU	Calendar quarter
Import scheme (IOSS)	Distance sales of goods imported from outside the EU (via the scheme's rules)	Calendar month

All OSS returns, with payment, are due by the end of the month following the period. Under the Union scheme you use the same VAT number as for your domestic VAT; a non-Union seller gets a special EU number from the Member State it picks.

Common mistakes

Counting the threshold per country. The EUR 10,000 is one EU-wide total of cross-border B2C sales, not per country.
Skipping nil returns. A return is due for every period you are registered, even with no EU sales.
Putting home-country sales in OSS. Sales to consumers in a Member State where you have an establishment go in your domestic return there, not the Union scheme.
Paying without the reference. Your Member State of identification gives each OSS return a unique reference number; quote it with the payment.
Using OSS for B2B. OSS is for supplies to non-taxable persons (consumers).

Quarterly checklist

Total cross-border B2C sales checked against EUR 10,000
Sales split by customer country and VAT rate
Goods split by country of dispatch (Union scheme)
Return filed by the end of the month after the quarter (nil if nothing sold)
Payment made with the OSS reference number
Records kept as the OSS record-keeping rules require

Frequently asked questions

What is the EU OSS threshold?

There is one EU-wide threshold of EUR 10,000 for intra-EU distance sales of goods and cross-border B2C telecommunications, broadcasting and electronic services. Below it, those supplies may remain subject to VAT in the seller's own Member State.

When is the OSS return due?

By the end of the month following the tax period: the calendar quarter for the Union and non-Union schemes, and the calendar month for the import scheme.

Do I have to file an OSS return if I sold nothing?

Yes. A return is required for each tax period whether or not supplies were made; with no EU supplies you submit a nil return.

Can a non-EU seller use the Union scheme?

Only for supplies of goods that fall under the Union scheme (goods dispatched within the EU). For B2C services, a business not established in the EU uses the non-Union scheme.

Official sources

Not tax advice. A free explainer of European Commission guidance; national rules and rates differ, so confirm with your tax authority or adviser. Last checked 13 Oct 2026.

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