Shopify glossaryGlossary4 min read
What Is the EU OSS VAT Scheme? One-Stop Shop for Shopify Sellers
OSS lets an EU store report the VAT it owes in other EU countries through one return at home. Here is how the scheme works, when you need it, and how to set it up in Shopify.
Key takeaways
- OSS (One-Stop Shop) lets a business report and pay VAT due in other EU countries through one return in a single member state, instead of registering in each country.
- Once an EU seller's cross-border sales to consumers pass €10,000 a year, it charges each customer's local VAT rate. OSS is how most stores report that.
- Union and non-Union OSS returns are quarterly, due by the end of the month after each quarter: 30 April, 31 July, 31 October and 31 January.
- In Shopify you add OSS under
Settings > Taxes and duties > European Union. It needs Shopify Tax or Basic Tax, and it can't run together with IOSS.
- Who it is for
- EU stores selling across borders
- Time needed
- 4 minutes to read
- What you need
- Your EU sales by country
OSS (One-Stop Shop) is the EU VAT scheme that lets a business declare and pay the VAT it charges consumers in other EU countries through one quarterly return in a single member state, instead of registering for VAT in each country. Online stores mainly use it once their cross-border sales to consumers pass €10,000 a year.
In the Netherlands it's called the btw-eenloketsysteem. I set it up for Dutch and other European Shopify stores, and the rules below come from the European Commission's OSS portal and Shopify's Help Center, as checked on 7 November 2026. This is general information, not tax advice.
How OSS works
- The €10,000 threshold. If your cross-border sales of goods to consumers in other EU countries stay at or below €10,000 (excluding VAT) in the current and previous calendar year, you can charge your home country's VAT. Above it, you charge the VAT rate of each customer's country.
- One registration. You register in your member state of identification, which for an EU business is where it's established.
- All or nothing. Once you opt in, OSS covers all qualifying sales to all member states. You can't use it for some countries only.
- One return, one payment. You file the VAT for every country in one return and pay the total at home. Your tax office passes each country's share on.
The three OSS schemes
| Scheme | Who uses it | Returns |
|---|---|---|
| Union OSS | EU businesses selling to consumers in other EU countries | Quarterly |
| Non-Union OSS | Non-EU businesses selling services, such as digital products, to EU consumers | Quarterly |
| Import OSS (IOSS) | Sellers of imported goods in parcels to €150 | Monthly |
A worked example
A Dutch store sells to consumers in Belgium and Germany. In its first year it sells €6,000 to Belgium and €3,000 to Germany: €9,000 in total, under the threshold, so it can charge Dutch VAT on everything.
The next year, sales reach €7,000 to Belgium and €5,000 to Germany, so the total passes €10,000. Now Belgian customers pay Belgian VAT and German customers pay German VAT. Without OSS, the store would register for VAT in both countries. With OSS, it files one quarterly return with the Dutch Belastingdienst.
OSS in Shopify
- Check your tax service. OSS only works with Shopify Tax or Basic Tax. Basic Tax is only available in the EU to stores set up to collect tax there before 13 May 2026.
- Open the EU settings. Go to
Settings > Taxes and dutiesand click European Union in the Regional settings section. - Add the registration. In Collect VAT cross-border, click Collect VAT and choose Collect using a One Stop Shop (OSS) registration.
- Enter your details. Pick the country of your OSS registration, enter your VAT number and click Collect VAT.
Shopify then charges each customer's local rate. It doesn't file the return for you, and OSS registrations don't apply to orders fulfilled from a location outside the EU. My guide to EU OSS VAT on Shopify covers the full setup, and Dutch readers can follow btw instellen in Shopify.
By country
- Netherlands and the rest of the EU: Union OSS is the scheme for physical goods shipped from inside the EU to consumers in other member states.
- UK: a GB business shipping goods to EU consumers from Great Britain is importing, so IOSS is the relevant scheme for parcels up to €150, not Union OSS.
- US and Australia: the same applies to physical goods. Non-Union OSS only matters if you sell services such as digital products to EU consumers.
Common misconceptions
- "OSS and IOSS are the same thing." OSS covers sales within the EU. IOSS covers imports up to €150. Shopify can't run both at once.
- "Under €10,000 I have to use OSS." You don't. Below the threshold you can charge home-country VAT, or opt in to OSS anyway.
- "Shopify files my OSS return." Shopify charges the right rates. You still file and pay.
- "OSS covers business customers." It's for sales to consumers. Sales to VAT-registered businesses follow other rules.
Related terms
- IOSS: the import scheme for parcels of €150 or less.
- Duties and import taxes: the customs charges on goods entering the EU.
- Sales tax nexus: the US version of a registration trigger, set by each state.
- Member state of identification: the one EU country where you register for OSS and file.
What to do next
- Add up your cross-border EU sales for this year and last year, excluding VAT.
- Register for OSS with your tax office if you're over €10,000 or close to it.
- Set up Shopify with the steps above, then place test orders to two EU countries.
- Get help if needed. I build and fix stores for Dutch merchants, and an accountant should confirm your registration before you file.
Free tools
Check your own store
Free, no sign-up. Each one runs a part of this guide for you.
Frequently asked questions
What is OSS VAT?
OSS (One-Stop Shop) is an EU scheme that lets a business declare and pay VAT due in other EU countries through one return in a single member state. It saves registering for VAT in every country you sell to.
When do I need to use OSS?
Once your cross-border sales of goods to consumers in other EU countries pass €10,000 a year, excluding VAT, you charge each customer's local VAT rate. OSS is optional, but without it you would register for VAT in each of those countries.
When are OSS returns due?
Union and non-Union OSS returns are quarterly, due by the end of the month after the quarter: 30 April, 31 July, 31 October and 31 January. Weekends and public holidays don't move the deadline.
What is the difference between OSS and IOSS?
OSS covers sales of goods between EU countries and certain services, with quarterly returns. IOSS covers goods imported into the EU in parcels of €150 or less, with monthly returns.
Can Shopify handle OSS?
Shopify can charge the correct VAT rate for each EU country once you add your OSS registration under Settings > Taxes and duties > European Union. It needs Shopify Tax or Basic Tax, and you still file the return yourself.
Sources
- The One Stop Shop, European Commission
- Declare and pay, European Commission
- Register for the One Stop Shop, European Commission
- Setting up EU taxes, Shopify Help Center
- EU tax reference, Shopify Help Center
Related services and work
I'm a Shopify developer and CRO specialist. I have built and improved Shopify stores since 2018, completed more than 1,000 projects, and hold a 4.96 average rating across 719 client reviews.
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