Selling to consumers in other EU countries: the €10,000 threshold and how the One Stop Shop (OSS) works

Last updated 22 Oct 2026 · India

Short answer. Since 1 July 2021, an EU business selling goods at a distance, or telecom, broadcasting and electronically supplied services, to consumers in other EU countries may charge its own country's VAT only while those sales stay under €10,000 a year EU-wide. Above that, it charges the VAT of the customer's country. Instead of registering in each country, it can use the One Stop Shop (OSS): register in its home country and file one quarterly OSS return, due by the end of the month after the quarter.

Which scheme

Scheme	Who	What
Union OSS	EU businesses (and non-EU sellers of goods stored in the EU)	Intra-EU B2C distance sales of goods; B2C services taxed where the customer is
Non-Union OSS	Businesses not established in the EU	B2C services to EU consumers (no €10,000 threshold)
Import OSS (IOSS)	Sellers of imported goods	Consignments of €150 or less

Quarterly routine

Record each sale with the customer's country and the VAT rate of that country.
File the OSS return by the end of the following month (Q4 2026: by 31 January 2027), even if nil.
Pay the total VAT to your home tax authority, which passes it on.
Keep records for 10 years.

Common mistakes

Counting the €10,000 per country. It is one EU-wide total.
Charging home VAT after crossing the threshold during the year; the change applies from the sale that crosses it.
Putting B2B sales into OSS. OSS is for B2C only; B2B uses reverse charge.
Missing nil returns in quarters with no sales.

Frequently asked questions

What is the EU OSS threshold?

€10,000 a year of cross-border B2C distance sales of goods and telecom, broadcasting and electronic services, counted EU-wide, for businesses established in one EU country.

When is the OSS return due?

By the end of the month following each calendar quarter.

Can non-EU businesses use OSS?

Yes. Non-EU businesses supplying services to EU consumers use the non-Union scheme, with no threshold.

How long must OSS records be kept?

10 years from the end of the year of the transaction.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 22 Oct 2026.

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