Selling goods or digital services to consumers across the European Union can be complex. Every EU country has its own VAT rates, rules and reporting deadlines. To simplify this, the European Union introduced the VAT One Stop Shop system, widely known as OSS. Through OSS, companies can declare and pay all EU VAT for consumer sales using one central VAT return.
For businesses registered in the Netherlands, the Dutch OSS system offers one of the most efficient and digitally advanced environments in the EU. In this guide, you will learn how OSS works, who needs it and how it fits into your financial operations. Insights are based on the European Commission VAT One Stop Shop portal and leading Dutch tax sources, combined with the practical experience of Oakhill Financial Services.
What is the OSS One Stop Shop
The OSS One Stop Shop is an EU wide VAT system that allows businesses to file VAT on cross border B2C sales through one online portal instead of registering in each country where customers live.
With OSS:
- you apply the VAT rate of the consumer’s country
- you report all qualifying sales in one quarterly OSS return
- the Dutch Tax Administration distributes VAT to each EU member state
OSS applies only to B2C transactions. B2B transactions follow the normal intra EU VAT rules and often use the reverse charge mechanism.
Why the OSS system matters for growing businesses
Before OSS, companies needed multiple VAT registrations if they sold to consumers in several EU countries. This created high administrative burden, extra bookkeeping work and a greater risk of late filings and penalties.
With OSS, companies can scale their EU presence more efficiently. At Oakhill Financial Services we see that businesses using OSS can expand faster because VAT obligations no longer slow down operational growth. If you want structure around your numbers while you scale, you can read more about our controlling services and CFO support.
When your business should use OSS
You should use OSS when:
- you sell goods or specific services to EU consumers and
- your total cross border B2C sales exceed EUR 10.000 per calendar year
Once you exceed this threshold, you must apply the VAT rate of the customer’s country. OSS makes that process manageable through one Dutch VAT return.
Example
A Dutch company sells to consumers in Germany, Belgium and France. If total EU consumer sales exceed EUR 10.000, foreign VAT rates apply. Without OSS, the company would need local VAT registrations in those countries. With OSS, everything is reported through the Netherlands.
Types of OSS systems in the EU
Union OSS
For EU established businesses selling goods or services to EU consumers.
Non Union OSS
For non EU companies providing services to consumers in the EU.
Import One Stop Shop IOSS
For goods up to EUR 150 imported from outside the EU and sold to EU consumers.
Benefits of OSS in the Netherlands
One single quarterly VAT return
You no longer need VAT registrations in multiple EU countries. All qualifying B2C sales are reported in one return.
Lower administrative costs
All VAT reporting flows into one return and one payment, which reduces complexity and internal workload.
Easier expansion across Europe
You can sell to all EU member states without additional VAT registrations, which makes international scaling much more accessible.
Reduced compliance risk
Working with one clear system reduces mistakes and missed deadlines. This is especially valuable for fast growing ecommerce businesses.
Strong Dutch tax infrastructure
The Netherlands has a reliable and user friendly digital portal for OSS filings. Many international sellers choose the Netherlands as their hub for EU sales.
Businesses that combine OSS with professional financial oversight often scale faster and with more stability. If you need support, explore our financial reporting dashboards that help track VAT, revenue per country and profit metrics in real time.
How OSS works step by step
1 Registration
You register for OSS in the Dutch tax portal Mijn Belastingdienst Zakelijk. After approval you report all qualifying B2C EU sales through this scheme.
2 Applying the correct VAT rates
Your webshop or invoicing system must show and apply the correct VAT rate for each EU country where your customers are located.
3 Quarterly OSS reporting
You file the OSS return every quarter and include all B2C sales separated per EU country and VAT rate. Corrections can be included in later returns.
4 Payment and distribution of VAT
You pay the total VAT to the Dutch Tax Administration. They route the right amounts to each EU member state where your consumers are based.
What OSS does not cover
OSS is powerful but does not cover every situation. It does not apply to:
- B2B transactions
- local sales in another EU country
- goods stored in another EU member state before sale
- transactions above EUR 150 under IOSS
- excise goods such as alcohol or tobacco
Companies that store goods abroad or run complex EU supply chains may still need local VAT registrations in addition to OSS. If you are scaling internationally and need a financial partner to oversee this, our CFO as a service can support your VAT planning, forecasting and compliance.
Common mistakes companies make with OSS
- using OSS for B2B instead of B2C transactions
- applying incorrect foreign VAT rates
- wrong allocation of sales per country
- confusing OSS with IOSS
- missing filing deadlines
- ignoring the impact of stock held in other EU countries
Many of these issues are caused by poor financial reporting or lack of structured monthly reviews. Oakhill supports companies with automation based reporting and monthly steering information so that international growth remains under control.
OSS for non EU companies using the Netherlands
Non EU sellers can register in the Netherlands for the Non Union OSS scheme and for IOSS. This allows them to access the European market through a single Dutch VAT interface, using the strong Dutch infrastructure while meeting EU VAT obligations.
OSS and your financial administration
To comply with OSS you must track at least the following data:
- sales per EU country
- VAT rate used per transaction
- refunds and corrections
- transaction dates
- type of goods or services sold
Reliable reporting is essential. Many businesses choose a financial partner to maintain accurate dashboards and automate VAT tracking. At Oakhill we provide finance dashboards and controlling support that integrate with your accounting systems and help you scale internationally with confidence.
Conclusion
The OSS One Stop Shop system simplifies VAT compliance for businesses selling to consumers across the European Union. Instead of multiple VAT registrations, companies can manage all EU VAT obligations through one Dutch OSS return. This enables faster expansion, lower administrative burden and improved compliance.
For businesses preparing to scale across Europe, combining OSS with structured financial reporting, cash flow insight and external CFO support creates a strong foundation for sustainable growth. If you need guidance on VAT structuring or international financial oversight, Oakhill Financial Services can support you with controlling, reporting and CFO services tailored to fast growing businesses.
OSS One Stop Shop FAQ
What is OSS One Stop Shop?
The OSS One Stop Shop is an EU wide VAT system that allows businesses to report and pay VAT on cross border B2C sales through one single VAT return in the EU country where they are registered. For Dutch businesses this is done through the Dutch Tax Administration.
What does OSS mean in retail?
In retail, OSS refers to the VAT One Stop Shop system that applies when a retailer sells goods to consumers in other EU countries. Once the retailer passes the EU threshold, foreign VAT rates must be used and OSS simplifies the reporting.
What does OSS payment mean?
An OSS payment is the total VAT amount that a business owes for all its cross border B2C sales within the EU for a given quarter. The business pays this amount to its local tax authority, which distributes the VAT to other EU countries.
What does OSS mean in VAT?
In VAT terminology, OSS stands for One Stop Shop. It is a special EU scheme created to reduce the administrative burden for businesses selling to EU consumers. It centralises VAT reporting in one member state.
Who can use OSS?
EU based businesses selling goods or certain services to EU consumers, non EU companies providing digital services and companies importing low value goods via IOSS can use the relevant OSS schemes, provided they meet the conditions.
Is OSS mandatory for EU sellers?
OSS becomes necessary once a business exceeds the EUR 10.000 threshold for cross border B2C sales within the EU. Above that threshold you must apply foreign VAT rates. OSS is then the simplest way to comply.
Does OSS apply to B2B?
No. OSS applies only to B2C transactions. B2B supplies follow the normal intra EU rules, often using the reverse charge mechanism or requiring local VAT registration where goods are stored or services are deemed supplied.
What is the difference between OSS and IOSS?
OSS is used for B2C sales of goods and services within the EU when the supplier and goods are already in the EU. IOSS Import One Stop Shop is used for imported goods up to EUR 150 that are sold to EU consumers. Both simplify VAT reporting, but they cover different transaction types.
Do I need special accounting for OSS?
Yes. You must track sales per country, VAT rates, refunds and corrections. Most companies benefit from a dedicated financial dashboard and professional controlling support to ensure that OSS reporting is accurate and complete.