What is OSS? The EU OSS scheme explained simply

The OSS (One-Stop-Shop, EU scheme) lets you report and pay the VAT on sales to private customers in other EU countries centrally with the Federal Central Tax Office (BZSt). You do not register in each EU country separately. You file one return per quarter for all countries concerned. The scheme has applied since 1 July 2021.

Last updated: 29 October 2026

In short

Idea: One return and payment to the BZSt instead of registrations in every EU country, for businesses based in Germany.
Tax rate: For distance sales, the rate of the country where the goods arrive applies.
Threshold: Distance sales plus certain services max. €10,000 (prior, current year): German VAT if established only in Germany, not waived.

What is the OSS for?

If you send goods to private customers in another EU country, the sale is generally taxed there. The place of supply of an intra-Community distance sale is the place where the goods are when the transport ends (§ 3c (1) UStG). Without a special scheme that would mean registrations, returns and payments in each of these countries.

The OSS takes that off your hands. The BZSt puts it this way: by taking part you no longer have to register for VAT in each member state in which you make supplies under the scheme. The obligations are fulfilled centrally in the member state of registration. You notify your participation when you want to use the scheme (§ 18j (1) UStG).

What this means for you: the OSS lets you report and pay EU sales VAT in one place instead of registering in every country.

Who is the OSS for?

The BZSt names businesses based in Germany that, for payment,

supply services to private persons in EU member states where they are not established,
make intra-Community distance sales of goods, or
provide an electronic interface, such as a marketplace, and are therefore treated as if they had supplied the goods themselves.

By law, an intra-Community distance sale is the supply of goods dispatched or transported by or on behalf of the supplier from one member state to another (§ 3c (1) UStG). For an online seller that means: you ship goods from Germany to end customers in another EU country.

Whether your customer is a business is shown by their VAT ID. The BZSt notes that you can check foreign VAT IDs for validity.

What this means for you: the OSS is meant for businesses established in Germany that sell to private customers in other EU countries.

What does the €10,000 threshold mean?

One special rule is the €10,000 threshold. It applies if you are established in only one EU member state. Your total from distance sales and certain services to customers in the other member states must not have exceeded €10,000 in the previous year, and must not exceed it in the current year. Then you tax these sales with German VAT. You can declare to the tax office that you waive this, which binds you for at least two calendar years (§ 3c (4) UStG).

Once the threshold is exceeded, the VAT of the destination country applies from the sale that exceeds it (destination principle). Details: The EU OSS threshold of 10,000 euros: examples.

What this means for you: the €10,000 threshold decides whether destination-country VAT applies, so watch your EU totals.

How does the OSS work in five steps?

Have a VAT ID: you apply to take part and state your VAT identification number.
Register in the BZStOnline-Portal: the application must be submitted through the BZStOnline-Portal. Registration generally starts on the first day of the quarter after the application. See OSS registration in Germany.
Sell and keep records: the tax rate of the country in which the sale is taxable applies. You keep records of your OSS sales; the retention period is ten years.
File each quarter: the return goes electronically to the BZSt, by EU country and tax rate, in euro. Even without sales you file a nil return.
Pay: you transfer the tax so that it has reached the federal cash office by the end of the following month.

A calculation with numbers is in OSS return worked example. The exact dates are in OSS return: how often and by when.

What this means for you: follow the five steps in order, and file one return per quarter.

What the OSS is not

Not a replacement for the advance VAT return. You declare your domestic sales to the tax office as before.
Not a scheme for single countries. Participation applies uniformly to all EU member states (§ 18j (1) UStG).
No input VAT deduction in the OSS return. Input VAT from member states where you only have OSS sales is claimed through the VAT refund procedure. See OSS and input VAT.
Not a scheme without duties. Anyone who repeatedly fails to meet the duties on time is excluded.

What this means for you: the OSS covers only sales to private customers in other EU countries; other sales stay in your normal returns.

Which mistakes come up most often?

Counting the threshold per country. The €10,000 covers all other EU countries together.
Still charging German VAT after the threshold is exceeded. From then on the destination country's VAT applies.
Forgetting the nil return. Even without sales in the quarter a return is due.
Missing the deadline. What then applies is in OSS: missed the deadline.
Applying too late. Registration generally only starts at the beginning of the quarter after the application. If you exceed the threshold in the middle of a quarter, you can register by the tenth day of the following month with effect from the day you exceeded it; after that, retroactive registration is not possible.

What this means for you: register in time and file every quarter; keep your records.

How VAT GPT helps

VAT GPT is the tax software for online sellers, freelancers and small businesses in Germany. It calculates and files in one place, in this order:

your OSS return
VAT
EÜR
trade tax
income tax

In three steps:

Upload: You upload your Amazon or eBay CSV reports and your invoices. The AI reads amounts, countries and tax rates.
Check: VAT GPT breaks down the VAT for Germany and the EU (OSS) and calculates the OSS return for all EU countries. You check and confirm.
Send: With VAT GPT Pro, the OSS return goes directly to the Federal Central Tax Office.

You apply for the OSS registration yourself in the BZStOnline portal. Try VAT GPT

Frequently asked questions

Who has to file an OSS return? Every business that takes part in the OSS, every quarter, even without sales (nil return). If you do not take part, you file no OSS return. You then tax your distance sales in the destination country once its VAT applies: above the threshold or after waiving it.

From when does the OSS apply? From the sale that takes you over the €10,000 threshold, the VAT of the destination country applies. If you were already above it last year, it applies from the first sale of the year. The OSS reports it centrally. Registration generally starts on the first day of the quarter after you apply.

Can I use the OSS without a VAT ID? No. You apply for participation electronically and give your VAT identification number.

What does OSS stand for? One-Stop-Shop. The BZSt calls the procedure "One-Stop-Shop, EU-Regelung"; it replaced the earlier Mini-One-Stop-Shop.

Since when does the OSS exist? The One-Stop-Shop EU scheme has been in force since 1 July 2021.

Is participation compulsory? You notify your participation when you want to use the scheme (§ 18j (1) UStG). Without taking part, the relief from registering in every country does not apply.

Who is responsible? The BZSt. The registration and the tax return belong in the BZStOnline-Portal.

How often do I file? Once per calendar quarter, in one return for all EU countries.

Does the OSS apply to small businesses? Yes, the €10,000 threshold applies to you too. Above it you can use the OSS, as one of three possible routes. More in OSS for small businesses.