Selling to EU consumers: the One Stop Shop (OSS)

Selling to customers in other EU countries sounds like a great opportunity for growth—until the VAT rules hit. If you're selling goods or digital services to EU consumers, a special VAT regime called the One Stop Shop (OSS) kicks in at a surprisingly low threshold. Once you cross it, you must register and file VAT in each country where you make sales. This guide explains when the OSS applies, how to register, and how to stay compliant.

When the One Stop Shop applies#

The OSS—officially the Union scheme—is a simplified way to handle VAT when you sell to consumers in other EU countries. It exists because traditionally, you'd have to register for VAT in every country where you had a customer, which was a nightmare for small sellers.

The OSS applies specifically to distance sales—when you sell goods or digital services to a private customer (B2C) in another EU country and you do not physically supply the goods yourself (e.g., you don't send a parcel with your hands). Distance sales are typically made by post, courier, or digital delivery, and they're taxed in the buyer's country, not yours.

The €10,000 threshold#

The key trigger is €10,000 annual turnover in B2C distance sales to other EU countries. This is calculated per calendar year:

• If your B2C distance sales to the entire EU stay under €10,000 in a calendar year, you apply your Dutch VAT rate (usually 21%) to all sales, and you report them normally in your Dutch VAT return.
• The moment your distance-sales turnover crosses €10,000 in a year, you must register for the Union OSS scheme. Once registered, you must apply the VAT rate of the customer's country, not your own.
• The threshold resets on January 1 each year.

What counts as distance sales?#

Not all cross-border sales trigger the OSS. Here are the main distinctions:

Distance sales that trigger OSS:

• Goods (physical products) shipped to consumers in other EU countries
• E-books, software, SaaS subscriptions, online courses sold to consumers in other EU countries
• Digital services (freelance work delivered online) to consumers in other EU countries
• Dropshipping or reselling goods to consumers abroad

Sales that do NOT trigger OSS:

• B2B services: When your customer is a business (even abroad), reverse charge applies instead—you invoice 0% VAT and they account for VAT in their country
• Goods you physically hand over: If you meet the customer and hand them goods in person (even in another EU country), it's not a distance sale; you typically apply your rate
• Services where you travel to provide them: If you travel to another country to deliver a service on-site, it may not be covered by OSS
• Goods supplied from another EU warehouse: If you have inventory in another EU country that customers pick up or you ship from there, different rules may apply

How the Union OSS works#

Once you register, here's what happens:

1. You charge the customer's country VAT rate#

Instead of your Dutch 21%, you charge the rate where the customer lives. A German consumer might owe 19%, a French consumer 20%, an Irish consumer 23%. Your invoice must show the correct VAT for their country.

2. You report all foreign sales via one return#

You file a single Union OSS return (OSS-aangifte) once a month or quarterly to the Dutch Belastingdienst, depending on your filing cycle. This return lists:

• The country where the customer is based
• The VAT rate you applied
• The total revenue in that country
• The VAT collected

You submit this return via Mijn Belastingdienst Zakelijk, and the Belastingdienst forwards the VAT owed to each country on your behalf.

3. You pay VAT to the Netherlands (which redistributes it)#

The VAT you collected goes to the Dutch tax office, which then distributes it to the relevant countries. You don't have to open VAT accounts in Germany, France, or anywhere else. It's a huge simplification compared to the old multi-country registration nightmare.

How to register for the Union OSS#

Registration is straightforward:

1. Log into Mijn Belastingdienst Zakelijk with your DigiD or eHerkenning
2. Find the OSS registration section (Diensten → Btw → One-Stop-Shop registratie or similar)
3. Fill in the registration form: Confirm your business details, state that you're offering distance sales to other EU countries, and select your reporting frequency (monthly or quarterly)
4. Submit: You'll usually get a confirmation immediately, and a reference number

Once registered, you'll receive a Union OSS identification number (starting with "NL"), which you must include on invoices to EU consumers.

Key compliance points#

• Accurate invoicing: Every invoice to an EU consumer must show the customer's country VAT rate and your Union OSS number
• Record-keeping: Keep clear records of which country each customer is in; the Belastingdienst may audit to verify you applied the right rates
• Monthly or quarterly filings: Choose your frequency when you register and stick to it
• Currency: You can report in EUR; if you sell in another currency, convert at the exchange rate on the invoice date
• Threshold clarity: Track your B2C distance sales separately from B2B services; only distance sales count toward the threshold

The risk of underpayment#

If you charge a customer 19% (German rate) but the Belastingdienst later discovers they were actually in a 23% country, you'll owe the 4% difference plus interest. This is why accurate customer-country verification is critical. Most eCommerce platforms auto-detect the buyer's location; if you're invoicing manually, ask the customer where they're located and keep proof.

When you might NOT need the Union OSS#

• Below €10,000: If your annual B2C distance sales stay under €10,000, you don't need to register. You apply Dutch VAT (21%) and declare it on your regular return.
• Only B2B: If you only sell to businesses, use reverse charge instead (invoice 0% and use ICP reporting).
• Only local sales: If you only sell to Dutch customers or hand-deliver goods to any EU customer, the OSS doesn't apply.
• Physical goods from outside the EU: If you import goods from outside the EU and resell them to EU consumers, different VAT rules apply (import VAT, not OSS).

Frequently asked questions#

Selling across the EU is exciting, and the OSS was designed to make it manageable. The key is registering at the right moment and keeping accurate records of which country each customer is in. Once you're registered, filing is straightforward: one return to the Dutch Belastingdienst covers all your distance sales to all other EU countries. Keep on top of your €10,000 threshold, and you'll avoid nasty surprises. For automatic VAT tracking and OSS support, ZZP Belasting simplifies the entire process.

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