Since 2021, EU e-commerce VAT has been reportable through a single portal. The operational confusion is still enormous — especially around when OSS versus IOSS applies.
The €10,000 Threshold
An EU-based seller crossing €10,000 of annual B2C distance sales to other EU member states must apply the destination country\'s VAT rate. Below that threshold, the country-of-establishment rate applies.
How OSS Works
OSS (One-Stop-Shop) lets you declare VAT for all other EU member states through a single portal in your country of establishment. Your Hungarian Kft. registers with the HU OSS portal, reports German, Italian, and French sales on one form, and the Hungarian tax authority forwards the amounts to the relevant states.
Filing is quarterly; payment is due by the end of the following month.
How IOSS Differs
IOSS (Import One-Stop-Shop) applies to goods under €150 shipped from outside the EU (e.g. from Turkey) to EU consumers. Without IOSS, every parcel is held at customs; with IOSS, VAT is collected by the seller at checkout and remitted in bulk, and the parcel is delivered with no customs hold.
Which Applies to You?
- EU-warehoused seller (Amazon Pan-EU, own warehouse): OSS.
- Direct shipper from outside the EU: IOSS.
- Both: register for both schemes.
The Common Error
Sellers confuse IOSS with "cheap shipping". IOSS is a VAT collection and reporting mechanism only; customs duty still applies. The second frequent error: single-country VAT registration instead of OSS, then filing separately in every destination member state — this is operationally ten times more expensive.
