EU VAT guide

OSS vs local VAT registration

OSS can simplify covered B2C cross-border VAT reporting, but it is not a universal replacement for every VAT registration or transaction type.

When OSS can help

For eligible cross-border B2C sales in the EU, OSS can allow one registration, one return, and one payment for covered transactions across Member States.

Where OSS may not solve it

  • Domestic sales in a country where local registration is required.
  • B2B reverse charge transactions.
  • Imports and IOSS-specific cases.
  • Marketplace deemed-supplier transactions.
  • Exempt, reduced-rate, or special-scheme supplies that need separate analysis.

Decision checklist

  • Is the customer a consumer or business?
  • Is the sale domestic, cross-border EU, or import-related?
  • Is a marketplace or merchant of record responsible for VAT?
  • Do you have reliable customer location evidence?
  • Can your checkout apply the customer-country rate?

FAQ

Does OSS remove the need to know local VAT rates?

No. OSS reporting still generally requires the correct customer-country VAT rate for covered B2C sales.

Can non-EU sellers use OSS?

Some non-EU sellers can use relevant OSS schemes, depending on the transaction and business setup.

Official sources