How does the EU OSS VAT scheme work?

EU OSS VAT scheme is a significant simplification for intra-EU cross-border sales.

The One-Stop Shop (OSS) is a system that simplifies Value Added Tax (VAT) compliance for businesses involved in cross-border trade within the European Union (EU). OSS offers several benefits, including:

  1. Simplified VAT Reporting: OSS allows businesses to declare and pay VAT on goods and services sold to customers in multiple EU member states through a single, centralised VAT return. This streamlines the reporting process and reduces administrative complexity.

  2. Reduced Administrative Burden: Businesses using OSS can avoid the need to register for VAT in each EU member state where they have customers. This significantly reduces the administrative burden associated with VAT compliance.

  3. Improved Cash Flow: OSS enables businesses to pay VAT in one lump sum, rather than making separate payments to multiple tax authorities. This can improve cash flow management.

  4. Enhanced Customer Experience: By simplifying VAT compliance, OSS can help businesses offer transparent pricing to customers, leading to a smoother and more predictable shopping experience.

  5. Compliance with EU Regulations: OSS ensures that businesses comply with EU VAT regulations, reducing the risk of non-compliance and associated penalties.

  6. Access to a Wider Customer Base: By simplifying VAT compliance, OSS can make it easier for businesses to expand their reach and sell to customers in multiple EU member states.

  7. Reduced Risk of Double Taxation: OSS helps prevent double taxation by allowing businesses to declare VAT in the member state of identification (where they are registered for OSS) and avoiding the need to declare VAT in multiple member states.

  8. Streamlined Record-Keeping: Businesses using OSS can maintain simplified and standardised records for VAT purposes, reducing the need for complex record-keeping systems.

  9. Compliance with Digital VAT Regulations: OSS covers digital services, ensuring that businesses offering such services can comply with VAT requirements across the EU.

  10. Consistency and Clarity: OSS provides a consistent approach to VAT compliance across the EU, making it easier for businesses to understand and follow the rules.

OSS allows for registered companies to collect VAT at checkout, report, and pay VAT on all their intra-EU cross-border sales in the country of registration quarterly. In other words, a single registration is sufficient to begin selling to all EU countries as long as the seller has capability to calculate VAT in accordance with the rate of the country of consumption.

OSS is a significant simplification and everyone should be registered for the scheme. 


EAS assists you with OSS registration. With EAS OSS solution, EAS automatically creates OSS reports to a ready-to-file file which can be uploaded to your local tax authorities

You can start the process by registering at or by booking a meeting here