VAT OSS for E-Commerce 2026 – Complete Guide to the One Stop Shop Procedure

The VAT One Stop Shop (OSS) procedure, introduced as part of the EU e-commerce VAT reform on 1 July 2021, has become one of the most important tools for online sellers operating across EU borders. By allowing businesses to declare and pay VAT in a single EU member state for all B2C transactions made across the bloc, OSS has significantly reduced the administrative burden of cross-border e-commerce. This guide covers how OSS works in 2026, who qualifies, how to register, and what changes are coming.

What Is VAT OSS and How Does It Work?

VAT OSS (One Stop Shop) is a system that allows businesses selling goods or services online to consumers in other EU countries to fulfil their VAT obligations through a single registration and a single quarterly return, rather than registering for VAT separately in each country where they make sales.

There are three OSS schemes:

Union OSS — for EU-established businesses selling intra-Community distance goods or providing B2C services where the place of supply is in another member state.

Non-Union OSS — for businesses established outside the EU, covering B2C supplies of electronic, telecommunications, and broadcasting services to EU consumers.

Import OSS (IOSS) — a separate scheme for distance sales of imported goods with a value up to €150, allowing VAT to be collected at the point of sale and declared centrally.

Under OSS, a business registers in its country of establishment, files a single quarterly return covering all qualifying sales across the EU, and pays the total VAT due in one transfer. The home tax authority then distributes the funds to the relevant member states.

Who Can Use OSS?

OSS is available to businesses that:

• Sell goods or services online to consumers (B2C) in EU member states other than their own
• Are registered for VAT in their home EU country (for Union OSS)
• Do not hold stock in the countries where they sell — if goods are stored in a foreign warehouse or Amazon FBA fulfilment centre, local VAT registration in that country is still required

Participation in OSS is voluntary, but for businesses exceeding the €10,000 threshold, it is the most practical alternative to registering locally in every EU country where they have customers.

The €10,000 Threshold

A single EU-wide threshold of €10,000 net per year applies to all intra-Community distance sales of goods and cross-border B2C services combined. In Poland, this equates to approximately PLN 42,000.

Below the threshold: VAT can be charged at the home country’s rate and declared domestically. Voluntary OSS registration is still possible and can be beneficial for businesses approaching the limit.

Above the threshold: VAT must be accounted for at the rate of each customer’s country. Businesses then have three options:

1. Local VAT registration in each country where goods are delivered — required regardless of OSS whenever stock is physically held in a country
2. OSS registration — single quarterly return in the home country, covering all distance sales to EU consumers (only for goods dispatched from the home country)
3. Combination of both — local VAT registration in countries where stock is held, plus OSS for distance sales made from those warehouses to customers in other EU countries

Important: OSS cannot be used retroactively. If the threshold is exceeded and registration is delayed, any past transactions must be reported through local VAT registrations in the relevant countries.

Registration Process (Poland)

To register for OSS in Poland, businesses submit Form VIU-R electronically through the tax portal. The competent authority is the Second Tax Office Warsaw-Śródmieście.

• Standard processing time: 2–5 working days
• If registering by proxy: a UPL-1 form (authorisation to sign and file returns) and a PPS-1 form (general authorisation) must be submitted first, which can extend the total process to 10–15 working days
• Registration takes effect from the first day of the quarter following the quarter in which the application was submitted
• If qualifying sales begin before that date, the business must notify the Second Tax Office Warsaw-Śródmieście by the 10th day of the month following the first qualifying transaction

Filing OSS Returns

OSS returns (Form VIU-DO) must be submitted quarterly, by the last day of the month following each quarter:

• Q1 (January–March): by 30 April
• Q2 (April–June): by 31 July
• Q3 (July–September): by 31 October
• Q4 (October–December): by 31 January

Returns must cover all transactions subject to the OSS procedure and include details of sales, applicable VAT rates per country, and the total VAT due. Payment is made in a single transfer in euros.

Corrections

Corrections to OSS returns cannot be made by amending the original return. Instead, any correction must be included in a subsequent OSS quarterly return, and can be submitted up to three years after the original deadline. It is therefore essential to prepare returns carefully before submission.

OSS and Amazon Sellers

The applicability of OSS differs depending on the fulfilment model used:

Amazon FBM (Fulfilment by Merchant): Sellers managing their own logistics and dispatching all goods from their home country can take full advantage of OSS, using a single return to cover all EU distance sales.

Amazon FBA (Fulfilment by Amazon): Sellers using Amazon warehouses in other EU countries must register for VAT locally in each country where their stock is held. OSS can still be used for distance sales made from those warehouses to customers in third EU countries, but it does not replace the local VAT obligation in the storage country.

Penalties for Non-Compliance

A business can be excluded from the OSS procedure if it systematically fails to comply with its obligations. Persistent non-compliance includes, for example, failure to submit returns for three consecutive calendar quarters. Once excluded, the business must register for VAT locally in each EU country where it has customers.

Low-Value Imports: The €22 Exemption Was Abolished in 2021

Since 1 July 2021, the VAT exemption for small shipments imported from outside the EU (previously applying to goods worth up to €22) no longer exists. All goods imported into the EU are now subject to VAT, regardless of value. For non-EU sellers, the Import OSS (IOSS) scheme provides a simplified way to collect and declare VAT on imported consignments up to €150 at the point of sale.

What’s Coming: ViDA and OSS Expansion

The ViDA package entered into force on 14 April 2025. From 1 January 2027, minor legislative clarifications will affect OSS and IOSS users. From 1 July 2028, broader Single VAT Registration reforms will extend OSS to cover movements of own goods between EU countries and domestic B2C supplies by non-established sellers — significantly reducing the need for multiple foreign VAT registrations.

From 1 January 2027, the OSS scheme will also be expanded to cover cross-border supplies of gas, electricity, heating, and cooling energy.

Businesses should ensure their current OSS compliance is in order while beginning to assess how the 2027–2028 changes will affect their registration and reporting structure.

Summary: Key Benefits of OSS for E-Commerce

• Single registration — no need to register for VAT in every EU country where consumers are located (provided no stock is held there)
• Single quarterly return — one declaration covers all qualifying EU distance sales
• Single payment in euros — one transfer distributed by the home tax authority across member states
• Reduced administrative costs — fewer filings, no language barriers with foreign tax authorities
• No retroactive declarations — careful threshold monitoring is essential, especially during peak sales periods

For questions about OSS registration, filing, or e-commerce VAT compliance across the EU, our team is ready to help: Contact us — amavat®