One Stop Shop (OSS) VAT Guide 2025: Rules, Registration & Filing

The EU’s One Stop Shop (OSS) is a VAT reporting scheme launched on 1 July 2021 to simplify cross-border B2C sales. It lets businesses declare all eligible EU sales through one VAT return and payment, instead of registering in each country.

Key Takeaways

• OSS replaces MOSS and now covers intra-EU distance sales of goods and more services.
• Businesses must charge VAT at the customer’s local rate, not their own country’s rate.
• Three schemes exist: Union OSS (EU businesses), Non-Union OSS (non-EU services), and IOSS (low-value imports ≤€150).
• Filing is quarterly (Union/Non-Union) or monthly (IOSS), done online via the Member State portal.
• OSS is optional but once chosen, all eligible B2C cross-border sales must be reported through it.

What is OSS VAT?

The One Stop Shop (OSS) VAT scheme is a framework introduced by the European Union to streamline VAT compliance for cross-border business-to-consumer (B2C) sales. It replaced the earlier Mini One Stop Shop (MOSS), which applied only to digital services, and now extends to distance sales of goods and a wider range of services.

Instead of registering for VAT in every EU country where you sell to private consumers, businesses can declare and pay VAT through a single quarterly return in their chosen Member State of Identification (MSI). That state then redistributes the collected VAT to the respective Member States where the customers are located.

Key Features of OSS VAT

• Single EU-wide filing: File just one return covering all eligible B2C sales across EU states.
• Quarterly returns: Returns are submitted electronically every quarter, simplifying compliance.
• Local VAT rates apply: You must still charge customers their local VAT rate, not your own country’s.
• Centralized payment: VAT is paid to the tax authority of the MSI, which then forwards the payments to other EU states.
• Covers multiple transaction types: Applies to both intra-EU distance sales of goods and cross-border services to consumers.

Who Needs to Register for OSS VAT?

The One Stop Shop (OSS) VAT scheme is designed primarily for businesses selling goods or services cross-border within the EU. Registration is not universal—only certain businesses qualify or benefit from joining.

How the OSS Scheme Works?

Here is how One Stop Shop (OSS) VAT scheme work in EU countries like France 

• Registration in France: A French business or a foreign business choosing France as its Member State of Identification (MSI) registers for OSS through the French tax portal (Impots.gouv). Once registered, the business can declare VAT for all eligible cross-border sales to EU customers via this single portal.
• Sales Across the EU: If a French online retailer sells clothing to customers in Germany, Spain, and Italy, it does not need to register for VAT in each of these countries. Instead, it declares all these sales through the French OSS portal.
• VAT Rates Applied: Even though the French tax portal is used, the VAT rate of the customer’s country still applies. Sales to Germany are taxed at the German VAT rate (19%), sales to Spain at the Spanish VAT rate (21%), and sales to Italy at the Italian VAT rate (22%). This ensures that VAT is collected correctly for each EU country.
• Filing OSS Returns: Businesses submit a quarterly OSS VAT return via the French tax portal. This return includes details of total sales made in each EU Member State, the applicable VAT rates, and the VAT collected.
• Payment of VAT: The total VAT due for all EU sales is paid in a single payment to the French tax authorities. France then redistributes the correct amounts to the tax authorities in the countries where the customers are based.
• Record-Keeping: Businesses must keep detailed transaction records for 10 years. These records can be audited by any EU tax authority if required.

Types of OSS Schemes in France

There are three types of OSS schemes that businesses may fall under, depending on their activities:

Union OSS Scheme

The Union OSS applies to EU-established businesses making cross-border B2C sales of goods and services within the EU.

Applicability

• French and other EU businesses selling goods to consumers in another EU country (intra-EU distance sales).
• EU suppliers of services to non-taxable persons in other EU Member States.

Example: A French e-commerce retailer selling clothes directly to German consumers can declare German VAT in France through the Union OSS scheme.

Non-Union OSS Scheme

The Non-Union OSS applies to businesses established outside the EU that supply certain services to non-taxable persons within the EU.

Applicability

• Non-EU companies (e.g., a U.S. software provider offering digital downloads to French or other EU customers).
• These companies must select one EU Member State (such as France) to register and file under OSS.

Example: A Canadian SaaS provider billing customers in France and Spain registers in France under the Non-Union OSS to handle VAT obligations centrally.

Import One Stop Shop (IOSS)

The IOSS is a special scheme that covers distance sales of goods imported from outside the EU valued at up to €150 per consignment.

Applicability

• EU and non-EU businesses selling low-value goods imported into the EU to consumers.
• Marketplaces facilitating such sales are often required to collect VAT on behalf of sellers.

Example: A French customer orders a smartphone case worth €30 from a Chinese online retailer. Using IOSS, the retailer can charge French VAT at checkout and declare it via the French IOSS portal, ensuring quick customs clearance.

How to Register for OSS in France

If your business makes cross-border B2C sales within the EU, you can register for the One Stop Shop (OSS) in France through the official tax portal.

1. Go to the official tax authority website: Impots.gouv.fr
2. Log in to your business account. If you don’t have one, create it first.
3. From your dashboard, select Manage services.
4. Activate the service called EU VAT one-stop shop / OSS-IOSS window.
5. Provide your company details: SIREN number, VAT number, company name, and registered address.
6. Enter business contact information such as email and phone number.
7. Indicate the start date from which you want to use the OSS scheme.
8. Submit the registration request online.
9. Wait for confirmation. Once approved, your registration is valid from the first day of the next quarter.

Note: For non-EU businesses using IOSS (Import One Stop Shop), you may need to complete additional forms (e.g., Form 3563-SD) and send them to the French tax e-commerce service.

Documents and Information Required

• SIREN number (French company identifier)
• French or EU VAT number
• Company’s legal name and address
• Contact details (email, phone)
• Proof or declaration of business activity involving B2C cross-border sales within the EU

How to File OSS VAT Returns?

Businesses registered under the OSS scheme in France must file their returns online through the official French tax portal: Impots.gouv OSS Portal.

Here are the steps to File OSS VAT Returns

1. Log in to your account on the https://www.impots.gouv.fr/ OSS Portal.
2. Navigate to the “One Stop Shop (OSS)” section.
3. Select the relevant reporting period (quarter).
4. Enter total sales made in each EU Member State.
5. Apply the correct VAT rates for each Member State.
6. Review the calculated VAT amounts and confirm accuracy.
7. Submit the OSS VAT return online.
8. Make a single payment of the total VAT due to the French tax authorities.
9. Save confirmation of submission and payment for your records.

Why Is the OSS Scheme Important?

Here’s why OSS is beneficial:

• Simplifies compliance: Businesses only need one VAT registration for all EU sales.
• Saves time and cost: Reduces administrative and legal costs of multiple country registrations.
• Improves cash flow: Ensures VAT is declared and paid in a single return, avoiding delays.
• Encourages cross-border sales: Makes it easier for SMEs to expand into other EU markets.
• Reduces errors: A centralized system lowers the risk of misreporting VAT.
• Supports EU digitalization goals: Part of the EU’s broader effort to modernize VAT reporting.

OSS VAT vs. Traditional VAT Registration

Here’s how OSS VAT compares to traditional VAT registration to help you clearly see the differences.

Conclusion

The EU OSS simplifies VAT for cross-border B2C sales by consolidating registration and reporting. In France, OSS registration and reporting are handled via the DGFiP portal. Businesses that qualify (selling digital services or distance goods above €10k) can use OSS to avoid dozens of national VAT filings. However, OSS is optional; companies may still register locally in each country if they prefer. If you opt into OSS, ensure timely quarterly filings and familiarize yourself with the OSS portal to avoid penalties.