What is the One-Stop Shop (OSS)?
The Union One-Stop Shop (OSS) (Articles 369a–369x VAT Directive) is an electronic portal allowing VAT-registered EU businesses to report and pay destination VAT due on all B2C intra-Community distance sales through one quarterly return in their home country.
SME Scheme & OSS Cohabitation Rules
As confirmed by the European Commission VAT Committee (123rd Meeting, Document C):
Cohabitation Permitted: Cohabitation between the SME scheme and the Union OSS scheme is fully permitted. An SME can exempt sales in Member States where it holds SME exemption, and simultaneously use Union OSS for Member States where it does not apply the SME scheme.
1
SME-Exempt Countries
Sales in Member States covered by your EX number are reported via your home SME quarterly turnover report as VAT-exempt.
2
OSS-Registered Countries
Sales in Member States where you do NOT use the SME scheme are declared in your quarterly Union OSS return, where destination VAT is paid.
3
Mandatory Turnover Aggregation
Calculation RuleCRITICAL: All supplies declared in your OSS return MUST still be included in your annual turnover calculation for checking your €100,000 Union SME Safeguard Cap!
Mutual Exclusivity with IOSS (Imports)
IOSS vs SME Scheme: Under Section 7.2 of the EC Explanatory Notes, the SME Scheme and the Import One-Stop Shop (IOSS) for non-EU imports (consignments ≤ €150) are mutually exclusive. To use IOSS for importing goods into the EU, an enterprise must opt out of the SME scheme for import transactions.
Official Sources & Legal References
- •EU VAT Directive 2006/112/EC — Title XII, Chapter 6 (Union OSS Scheme).
- •European Commission VAT Committee Guidelines — 123rd Meeting, Document C (taxud.c.1(2024)5028879).
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