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The European Union has several registration schemes that affect how you charge and report VAT. Choosing the correct registration type is crucial for compliance.

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Standard Registration

A standard VAT registration in a specific EU country. This is the traditional registration type where you:
  • Register in each country where you exceed registration thresholds
  • Charge local VAT rates to customers in that country
  • File VAT returns in each country separately
  • Can recover input VAT on purchases in that country
When to use: When you have a physical presence, warehouse, or significant sales in a specific EU country.

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OSS for EU (One-Stop Shop)

The EU One-Stop Shop allows you to register in one EU country and report VAT on sales to consumers (B2C) across all EU member states. Key features:
  • Register in one EU country only
  • Charge destination country VAT rates (where the customer is located)
  • File a single quarterly return covering all EU sales
  • No need for multiple EU registrations
When to use:
  • You’re selling B2C to customers across multiple EU countries
  • You exceed the €10,000 annual distance selling threshold
  • You want simplified compliance across the EU
Example: A French company sells software to consumers in Germany, Spain, and Italy. Instead of registering for VAT in each country, they use OSS for EU to report all sales through their French registration.

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OSS for Non-EU

This scheme is for non-EU businesses selling to EU consumers. It allows you to register in one EU country to report and remit VAT on all EU B2C sales. Key features:
  • Register through one EU member state (even though you’re not based there)
  • Charge destination country VAT rates
  • File quarterly returns in that member state
  • Avoid registering in every EU country where you have customers
When to use:
  • Your business is based outside the EU
  • You sell digital services, goods, or other products to EU consumers
  • You want a single point of compliance for EU VAT
Example: A US-based SaaS company selling to consumers in multiple EU countries registers for OSS in Ireland to handle all EU VAT obligations.

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IOSS (Import One-Stop Shop)

IOSS is specifically for distance sales of imported goods valued at €150 or less from outside the EU to EU consumers. Key features:
  • Designed for e-commerce and marketplace operators
  • Collect VAT at point of sale (instead of customs)
  • File monthly returns
  • Simplified customs clearance (no VAT at border)
When to use:
  • You sell physical goods from outside the EU to EU consumers
  • Order values are €150 or less
  • You want to collect VAT upfront and avoid customs delays
Example: A Chinese e-commerce platform selling consumer electronics to EU customers uses IOSS to collect VAT at checkout and streamline delivery.
Choosing the wrong registration type can lead to incorrect tax calculations and compliance issues. If you’re unsure which registration type applies to your business, consult with a tax advisor.