One-Stop-Shop (OSS): The Ultimate 2025 Guide for EU-Selling Freelancers & Online Stores
Peter
Updated on:
Jul 14, 2025
The EU One-Stop-Shop (OSS) lets freelancers and online stores file one quarterly VAT return for all EU B2C sales instead of registering in every country.
Covers distance sales of goods and digital services
Single €10 000 pan-EU threshold replaces 27 local limits
Pay VAT in € once; BZSt distributes it to each state
Cuts compliance costs, late-filing risk, and admin hours, crucial as cross-border e-commerce keeps rising in 2025
One-Stop-Shop Principle Explained
From MOSS to OSS: the evolution
In 2015, the EU introduced the Mini-One-Stop-Shop (MOSS) to simplify VAT on cross-border digital services. It worked—but only for streaming, software, and similar intangibles. On 1 July 2021, the scope was dramatically widened:
Then (MOSS) | Now (OSS) |
Digital services only | Digital services plus distance-sales of goods |
Separate thresholds per country | Single €10 000 EU-wide threshold |
Limited to non-EU sellers & e-services | Applies to all EU-based businesses selling B2C across borders |
The upgrade was driven by booming e-commerce, fragmented VAT rules, and billions in lost tax revenue. By merging service and goods provisions, the One-Stop-Shop (OSS) became the new default for compliant growth in the European single market.
The “single EU VAT portal” concept
At its core, OSS consolidates 27 separate VAT accounts into a single quarterly return, which is submitted via your home tax office—in Germany, this is the BZSt Online-Portal (BOP). Here’s how the workflow looks:
Register once in BOP under the OSS regime.
Collect foreign VAT at the customer’s local rate during checkout.
File one consolidated return (in euros) by the end of the month following each quarter.
Pay a single amount to the Bundeskasse Trier.
BZSt forwards the funds and transactional data to each destination country—no extra logins, no local VAT IDs required.
The result? Lower compliance costs, fewer deadlines, and zero language hurdles, while EU tax authorities still get the right amount of VAT. That’s why regulators call OSS the “single EU VAT portal”—and why sellers see it as a passport to friction-free cross-border growth.
Who Should Use the One-Stop-Shop?
The OSS regime isn’t mandatory, but for many businesses it’s the fastest route to stress-free EU VAT. Here’s a clear checklist.
Cross-border B2C sellers
If you ship physical goods from one EU country to private consumers in another, OSS is your friend. Typical profiles:
Shopify / WooCommerce stores scaling beyond domestic markets
Amazon, eBay, or Etsy merchants dispatching from a German warehouse to France, Italy, Spain, and other countries.
Brands running their own fulfillment centers within Germany but serving EU-wide customers
Why join? One VAT number, one return, no surprise registration letters from foreign tax offices.
Digital & telecom service providers
Streaming apps, SaaS platforms, online courses, e-books, VoIP, or mobile data bundles—if you sell electronically supplied services to European consumers, you’ve technically been using MOSS since 2015. OSS maintains the same workflow but allows you to include any distance sales of goods in the same filing.
Typical wins
Combine subscription and merchandise revenue in one quarterly return
Charge the correct local VAT rate automatically at checkout
Avoid dozens of separate e-service VAT portals across the EU
Micro-businesses and the €10 000 threshold
The EU established a single € 10,000 net turnover threshold for all cross-border B2C sales (including goods and digital services).
Scenario | OSS needed? |
Your total EU-wide B2C sales last year below €10 000 and stay below this year | Optional—you may keep charging German VAT and report domestically |
You breached €10 000 in either the current or previous calendar year | Strongly recommended—otherwise you must register for VAT in every destination country |
Even ultra-small sellers often opt in early because:
Growth can tip you over €10 000 mid-year; OSS future-proofs you.
Customers see local VAT on invoices, boosting trust and conversion.
Early adoption means no messy mid-year price or system changes.
💸 If you sell B2C goods, digital content, or both across EU borders, OSS is typically the simplest and most cost-effective compliance path once your ambitions extend beyond German borders.
How the OSS Scheme Works Step-by-Step
Eligibility checklist
Before you hit “Register”, make sure you tick all the Union-OSS boxes:
Requirement | Why it matters |
B2C cross-border supplies of goods or digital services inside the EU | OSS only covers sales to private customers in other Member States, not B2B or purely domestic turnover. |
EU VAT ID already issued | You cannot sign up without a valid domestic VAT number. |
Exceeded (or expect to exceed) the €10 000 pan-EU threshold or you voluntarily opt-in | Below €10 000 you may still charge German VAT, but many sellers join early to future-proof growth. |
No need for local VAT numbers due to foreign warehouses | If you hold stock in another EU country, you still need a local VAT ID there; OSS does not replace that obligation. |
If every row shows a green check mark, OSS is available and usually the most efficient route.
Registration via the BZSt BOP portal
Germany’s Federal Central Tax Office (BZSt) handles OSS through its BOP (Bundeszentralamt-Online-Portal). The entire process is electronic, but please plan for a few weeks for the initial certificate.
Get or confirm your German VAT ID – a hard requirement for Union-OSS.
Create a BOP account & download the certificate
Log in with an existing ELSTER certificate or request a new BOP certificate; postal activation codes can take up to six weeks. (BZSt)
Submit the “Registrierungsanzeige – OSS EU-Regelung” form inside BOP.
Timing rule: Registration takes effect from the first day of the next calendar quarter, unless you start OSS-relevant sales sooner and notify BZSt by the 10th day of the following month.
Pro tip: Register before you cross the € 10,000 line so your checkout prices don’t need mid-quarter adjustments.
Quarterly filing & payment timeline
OSS uses the calendar quarter as its tax period. Both the VAT return and the single payment are due by the last day of the month that follows the quarter:
Quarter | Sales period | Return + payment deadline |
Q1 | 1 Jan – 31 Mar | 30 April |
Q2 | 1 Apr – 30 Jun | 31 July |
Q3 | 1 Jul – 30 Sep | 31 October |
Q4 | 1 Oct – 31 Dec | 31 January (next year) |
Miss the deadline, and BZSt will email a reminder 10 days later; persistent lateness can trigger penalties in every destination country.
Payment is a single SEPA transfer to the Bundeskasse Trier, quoting the unique reference generated by BOP.
Record-keeping & audit (10-year rule)
EU law requires OSS traders to store detailed electronic records for 10 years from 31 December of the year in which each transaction occurs. Your archive must let any EU tax authority verify:
Date, value, and description of the supply
Customer location evidence (two non-contradictory data points)
VAT rate applied and amount due per Member State
Proof of shipment/delivery (for goods) or consumption (for services)
Currency conversion is used if not invoiced in €
Keep these files export-ready (CSV, XML, PDF); BZSt can request uploads through BOP during an audit. (BZSt)
✅ Tick the eligibility boxes, register once in BOP, file and pay on time every quarter, and lock down your 10-year digital audit trail—then OSS compliance becomes a background task instead of a monthly headache.
Transactions Covered by OSS
Intra-EU distance sales of goods
OSS covers “intra-Community distance sales of goods”—any shipment that
leaves one EU Member State and
is delivered to a private consumer (B2C) in another Member State.
Since 1 July 2021, the old country-by-country thresholds have been eliminated; a single €10,000 pan-EU limit now applies. Once you exceed it (or opt in voluntarily), every cross-border parcel is included in your quarterly OSS return at the buyer’s local VAT rate.
Exceptions: goods installed/assembled on-site, and new means of transport, are explicitly excluded; therefore, they remain subject to local VAT registration.
Digital services to private consumers
All electronically supplied services—software subscriptions, streaming, mobile data, e-books, and online courses, as well as telecom and broadcasting services —are still covered (they were transferred from MOSS to OSS in 2021). You charge VAT where the consumer lives and report through OSS, thereby sparing yourself the need to navigate 27 separate e-service portals.
Marketplace “deemed-supplier” rules
When a marketplace facilitates either
intra-EU distance sales of goods by any seller, or
imports ≤ €150 from non-EU territories,
EU law treats the platform as the “deemed supplier.” The marketplace, not the underlying merchant, must collect and remit VAT—often via its own OSS/IOSS number. If you also run an independent web shop, only the off-platform sales are included in your OSS return.
What’s excluded (B2B, excise goods, domestic sales)
OSS is a simplification, not a catch-all. The following do not belong in an OSS return:
Excluded supply | Why |
B2B transactions | Reverse-charge rules mean the buyer accounts for VAT; OSS is strictly B2C. |
Purely domestic German sales | Still reported in your local VAT return, not OSS. |
Excise-duty goods (alcohol, tobacco, energy) | Require local excise procedures; OSS does not handle them. |
Goods shipped from a foreign warehouse where you hold stock | You need a local VAT ID for those in-country sales before the goods leave the warehouse. |
Understanding these boundaries keeps your OSS filings clean and prevents costly double registrations or audits.
OSS for Small Businesses: Benefits & Caveats
Using vs. waiving the micro-business rule (€10 000)
Under EU law, if your total cross-border B2C turnover (goods + TBE services) remains below €10,000 in both the current and previous calendar years*, you may continue to charge German VAT and report everything in your domestic USt-VA. This is often referred to as the micro-business rule or place-of-supply exception.
Why you might use it
Zero extra filings—only your regular German VAT return.
Prices stay consistent for German and foreign shoppers (one VAT rate).
No upfront OSS learning curve.
Why you might waive it and opt in to OSS anyway
Future-proof growth: The moment you exceed € 10,000 mid-year, you must switch to destination VAT. Early OSS registration avoids mid-season repricing.
Customer trust: Invoices display the buyer’s local VAT rate, which can often serve as a conversion booster.
Marketplace parity: if you already sell via Amazon/eBay (which remit VAT as deemed suppliers), aligning your own-shop checkout with local rates keeps pricing consistent.
Heads-up for 2025+
A new EU SME exemption lets tiny firms stay VAT-free up to €85 000–€100 000 EU turnover if each Member State adopts it. This runs outside OSS; once you join OSS, you cannot use that exemption. Assess both paths with your tax adviser.
*TBE = telecom, broadcasting & electronic services.
Worked examples: below vs. above €10 000
Scenario | Cross-border B2C turnover (calendar year) | VAT you charge | Filing route |
Anna’s Art Prints – ships €6 800 of posters from Berlin to France/Italy | €6 800 (< €10 000) | German 19 % | Include in German USt-VA only (OSS optional) |
Leo’s Laptop Accessories – Q1 sales: €11 200 (€4 500 FR, €3 700 ES, €3 000 PL) | €11 200 (≥ €10 000) | Local VAT rates: FR 20 %, ES 21 %, PL 23 % | Must register for Union-OSS (or individual VAT numbers in each country) |
📈 Staying under € 10,000 keeps compliance ultra-light, but once ambition (or a viral TikTok) pushes you over the line, OSS is typically the most cost-effective and fastest way to stay compliant.
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Feeling overwhelmed? We've created an easy-to-follow handbook designed specifically for new Etsy sellers and creative freelancers like you. Kickstart your journey confidently!
Step-by-step starting checklists: registration, invoicing, taxes
Ready-to-use invoice samples with the correct destination VAT layout for cross-border sales
German tax calendar and deductibles cheatsheet so you never miss tax deadlines and tax write-offs
Everything is written for newcomers—using plain language, avoiding jargon, and featuring plenty of screenshots.
OSS vs IOSS vs Local VAT Registration
Key differences at a glance
Feature | Union-OSS | Import-OSS (IOSS) | Local VAT registration |
What it covers | Distance sales of goods & digital services within the EU (Seller → EU consumer) | Distance sales of imported goods ≤ €150 (Non-EU warehouse → EU consumer) | Any supply that falls outside OSS/IOSS—e.g. local warehouse sales, B2B, excise goods |
Where VAT is paid | Via one quarterly return to home tax office (BZSt in Germany); authority splits the money | Via one monthly return to the Member State of identification; customs release sped up | Directly to the tax office in each Member State where you hold stock or make other taxable supplies |
Thresholds | €10 000 pan-EU turnover (optional below, mandatory above) | No turnover threshold—limited by consignment value (€150) | None; obligation arises as soon as you need a local VAT ID |
Goods value limit | None | ≤ €150 per parcel; above that, normal import VAT applies | None |
Digital services? | Yes | No | Yes (if you choose local reg. instead of OSS) |
Best for | EU-based merchants shipping from one EU country to private customers EU-wide | Non-EU sellers or dropshippers sending low-value parcels into the EU | Sellers with warehouses in multiple EU countries, excise products, or domestic B2C/B2B sales |
Decision matrix—Which path fits your model?
If you… | …then pick | Because |
Ship from Germany only to EU consumers and expect sales to exceed (or already exceed) €10 000 | Union-OSS | One VAT ID, one return, zero foreign registrations |
Use a 3PL/warehouse in France and Spain to serve nearby customers | Local VAT registrations in FR & ES plus Union-OSS for any shipments that still leave Germany | Stock held abroad triggers local VAT IDs; OSS still simplifies the rest |
Dropship from China with average basket €49 to EU buyers | Import-OSS | IOSS lets you pre-collect EU VAT, avoids customs delays for parcels ≤ €150 |
Sell SaaS subscriptions + branded merch shipped from Germany | Union-OSS | Covers both digital services and goods in one filing |
Stay under €10 000 cross-border turnover but plan aggressive growth next year | Voluntary Union-OSS | Prevent mid-year repricing & registrations if you suddenly go viral |
Trade alcohol or e-cigarettes across borders | Local VAT & excise registrations | Excise goods are outside OSS/IOSS scope |
Rule of thumb:
OSS = intra-EU goods/services from one Member State
IOSS = low-value imports into the EU
Local VAT IDs = whenever you store stock, exceed €150 import value, sell excise goods, or supply B2B domestically
Choose the path that minimises registrations without risking under-collection of VAT in any market you serve.
Common Pitfalls & How to Avoid Them
Even though the One-Stop-Shop is designed to make life easier, a few trip wires can still catch sellers off guard. Let’s run through the three most frequent issues we see in 2025—and how to dodge them without breaking a sweat.
Late or Incorrect Registration
Picture this: your side-hustle jewelry store suddenly takes off on TikTok, French and Italian orders roll in, and you smash the €10 000 cross-border limit halfway through the year. You still have until the 10th day of the month following that first OSS-relevant sale to file your registration, but most founders are so busy packing parcels that the date slips by. Miss it, and you’re technically liable for local VAT registrations in every destination country you shipped to during the interim.
How to stay safe:
Register proactively—the moment your forecasts show you’ll hit €10 000 this calendar year.
Calendar-block the OSS deadlines just like you would a product launch.
If you realize you crossed the line late, register anyway and include the earlier transactions in your first return; most EU tax offices prefer late compliance to silence.
Wrong FX Rates & Currency Issues
OSS returns must be filed in euros, even if your checkout charges Swedish kronor or Polish złoty. The rule is simple: use the European Central Bank rate from the last day of the quarter. What trips sellers up is relying on live API rates from their payment provider instead of the fixed ECB snapshot. The result? Your VAT amounts don’t quite match what the French or Spanish tax office receives, and reconciliation letters start flying.
Fix it: Lock the correct ECB rate into your accounting software at quarter-end, then rerun the currency conversion in bulk before submission. If you’re using Norman, we pull that rate automatically and flag any transactions that used a different one, so no midnight spreadsheet gymnastics.
Warehouse Locations and Unintended VAT IDs
The biggest OSS myth is that it covers all EU selling scenarios. Not so. If you store inventory in another Member State—perhaps you’ve joined a 3PL in the Netherlands or Amazon has quietly shifted stock to Poland—those local dispatches are considered domestic supplies, completely outside the scope of OSS. The day your goods arrive at the warehouse, you’re expected to have a Polish (or Dutch) VAT number, regardless of your OSS status.
Many sellers discover this the hard way: they receive a “welcome” letter from a foreign tax office demanding late filings, along with interest.
Your move: keep a real-time map of where your stock physically sits. If you use fulfillment services, ask for a monthly “inventory by location” report. The moment new territory appears, start the local VAT application—or move the goods back to Germany before you ship anything out. Norman’s warehouse tracker pings you when stock crosses a border, so you never wake up to an unexpected VAT number request again.
🚨 Stay ahead of these three pitfalls, and OSS turns into the hassle-free VAT passport it was meant to be—freeing you to focus on growth, not red tape.
How Norman Automates Tax Reporting
Imagine finishing your quarterly bookkeeping and pressing a single button, with all relevant tax reports created automatically. That’s the workflow Norman gives you.
Seamless data flow – Sync your bank and upload documents. Norman will do the matching and categorization.
Built-in logic – Norman tags each sale as domestic, EU, third-country, and the applicable VAT rate.
One-click submission – Whether quarterly or annual returns roll around, you review, hit “Submit”, and Norman transmits the XML returns to tax authorities: no portal gymnastics, no CSV uploads, no late-night copy-paste.
Result: compliance that takes minutes, not days, leaving you time to chase new customers instead of chasing tax authorities.
But wait, there’s more:
Live tax estimates - See how much taxes you owe change with every transaction.
Free unlimited invoicing – Issue compliant e-invoices for free.
Personalized tax tips – Learn what tax write-offs you are missing based on your accounting and Norman’s experience.
Make EU VAT effortless with Norman.
Frequently Asked Questions
What is the One-Stop-Shop principle?
The One-Stop-Shop (OSS) lets EU businesses report all cross-border B2C sales in a single quarterly VAT return submitted to their home tax office. Instead of juggling 27 registrations, you pay once in euros; your authority splits the money among the other Member States.
How does the One-Stop-Shop scheme work?
Register in the BZSt Online Portal, charge each customer the VAT rate applicable to their country, and continue selling. At quarter-end, you file one OSS return and send one payment to the Bundeskasse Trier. Germany forwards both data and cash to every destination tax office—job done.
Who needs the One-Stop-Shop?
Any EU-based freelancer, brand, or marketplace seller who ships goods or delivers digital services to private customers in other EU countries and whose cross-border turnover is over €10 000 per year (or who opts in early for simplicity).
Which sales fall under OSS?
Distance sales of physical goods that cross an internal EU border
Electronically supplied services, telecom, and broadcasting to EU consumers
Marketplace-facilitated imports under €150 fall under IOSS, while purely domestic or B2B transactions stay outside OSS.
Is OSS mandatory?
It’s optional below €10 000 in cross-border B2C turnover. The moment you exceed that threshold—or decide you’re tired of juggling differing VAT rates manually—joining OSS becomes the easiest compliant path. Staying out means registering for VAT in every country where the buyer is located.
OSS vs IOSS: When to use each?
Use OSS when you dispatch goods from one EU country to another or sell digital services inside the EU.
Use IOSS when shipping low-value consignments (≤ €150) from outside the EU directly to EU consumers; it speeds up the processing of parcels through customs and handles import VAT in one step.
Conclusion & Next Steps
EU e-commerce continues to surge ahead, and the tax rules are finally catching up. The One-Stop-Shop gives you a single, predictable route through the maze—no more emergency registrations, no more guessing foreign VAT rates. Register once, file once, pay once, and get back to building products your customers love.
Here’s a simple action plan:
Run the numbers: if your cross-border B2C turnover is approaching € 10,000, don’t wait—start the OSS registration today.
Grab the guide: drop your email in the form above and we’ll send you 'Mastering Freelance in Germany' plus the quarterly tax write-offs cheat-sheet and the tax calendar.
Automate the grunt work: let Norman pull the sales data, calculate the correct VAT, and fire off each return while you sleep.
Ready? Sign up with Norman to make tax compliance effortless.