Distance Selling and B2C Services. New One Stop Shop (OSS) & Import One Stop Shop (IOSS) schemes


The new One Stop Shop (OSS) and the new Import One Stop Shop (IOSS) will replace the traditional distance selling rules which are currently in place across the EU from 1 July 2021. The main provisions are described below.

Eligible business can opt to register for these schemes, in advance of the go-live date of 1 July.

While the current Mini One Stop Shop (MOSS) applied across telecommunications, broadcasting and electronic (TBE) services, the OSS extends this and will apply to the following supplies:

  1. the cross-border supply of services on a B2C basis to a Member State where the supplier is not established.
  2. intra-Community distance sales of goods  with a new EU wide threshold of €10,000; No threshold applies for suppliers not established in the EU
  3. certain domestic supplies of goods.

An OSS registration should be available electronically in one EU Member State (usually the Member State of establishment) and should enable the supplier to declare its B2C supplies as noted above.

This should result in a single VAT reporting and payment obligation across multiple EU Member States for the above supplies. The supplier remits the VAT payable to the tax authorities in the jurisdiction the OSS registration is held, via a quarterly return, and this is in turn distributed as appropriate to the  Tax Authorities across the EU. As a result of the OSS, multiple EU VAT registrations should not be required to be held.

The supplier can still opt to use the current procedure of registering in each member state separately.

Deadline for filing the OSS return is 30 days from the end of the quarterly reporting period.


Union and Non-Union Schemes are available depending on the circumstance as applicable to each taxpayer.

1. Union Scheme

This is available to businesses who have an existing establishment in the EU. The scope of the Union Scheme will be extended from the current position to include cross-border supplies of services on a B2C basis and intra-Community distance sales of goods.

Non-EU established suppliers may also register for the Union Scheme but limited only to the taxpayer’s intra-Community distance sales of goods. This may result in non-EU established taxpayers also being required to register for the OSS under Non-Union Scheme as noted below for the supply of services.

2. Non-Union Scheme

This is available to businesses who do not have a business/fixed establishment in the EU. Such suppliers should be entitled to register for the OSS in any EU Member State.

The Non-Union Scheme will enable the reporting of B2C supplies of services to the EU.

low value goods below 150 euro -IMPORT ONE STOP SHOP (IOSS)

From 1st July 2021 a separate IOSS scheme also applies to the distance selling of goods imported into the EU from a non-EU country. The current low value consignment VAT relief threshold of €17 is abolished. Import VAT should be applied when importing goods into the EU.

The IOSS aims to facilitate the reporting and payment of import VAT on such goods whereby, the supplier can charge VAT at the point of sale and report and remit this VAT via a monthly IOSS return and not when the goods are imported in the EU. Where the IOSS is used, the value of the goods should be treated as being VAT inclusive at the time of payment and the importation of the goods treated as being VAT exempt.

Both EU and non-EU established suppliers can use IOSS. In addition, at the time of the supply, the intrinsic value of the consignment does not exceed €150.


It should be noted that online marketplaces or platforms will be considered to be deemed suppliers for vat purposes if it facilitates the following transactions:

  • distance sales of goods imported in EU from third countries in packages with a value of less than 150 euro irrespective of the place of the supplier
  • intra-EU distance sales irrespective of value and is made by a non-EU distance seller.

The above is a basic guide. Please contact a member of our staff for more information