OSS for small businesses: does the 10,000-euro threshold apply?

Yes, the €10,000 OSS threshold applies to small business owners (Kleinunternehmer). It is separate from the €25,000 and €100,000 limits. If your distance sales and digital services to private customers in other EU countries stay within €10,000 net last year and this year, you need no OSS. Above it you have three options: OSS, local registration or the EU small business scheme.

Last updated: 29 October 2026

In short

Small business limit: €25,000 previous year, €100,000 current year (§ 19 UStG); separate from the OSS threshold.
Above €10,000: The place of supply is in the destination country; § 19 UStG exempts only sales made in Germany.
Combinable: OSS and EU small business scheme (§ 19a UStG): not in one country (EU Commission), yes in different ones.

How do the two limits differ?

	German small business scheme	OSS threshold	EU small business scheme
Legal basis	§ 19 UStG	§ 3c (4) UStG	§ 19a UStG
Limit	€25,000 previous year, €100,000 current year	€10,000 in the previous and the current year	€100,000 annual EU turnover in the previous and the current year
What counts	Sales made in Germany	Distance sales and digital services to private customers in other EU countries	Sales in the whole EU
Purpose	no VAT in Germany	the place of supply stays in Germany	exemption in other EU countries too

How the €10,000 threshold is calculated, with examples, is in The EU VAT OSS threshold of 10,000 euros: examples. The small business limits and whether you have to file advance returns are explained in VAT return for a small business in Germany: do I have to file?.

What this means for you: Compare the three limits before you decide; staying below one does not mean staying below the others.

Below the threshold: you remain a small business owner

Three conditions must be met together:

You are established in only one EU country.
You sell goods or digital services to private persons in other EU countries.
The total is no more than €10,000 net in the previous and the current year.

Then these sales count as domestic sales. For you as a small business owner this means they are VAT-exempt under § 19 UStG like your other sales in Germany. You do not need to register for the OSS; doing so would in fact be a waiver of the threshold rule.

What this means for you: Below the €10,000 threshold your sales to other EU countries count as domestic sales, so § 19 UStG still applies to them.

Above the threshold: why § 19 UStG no longer helps

The small business exemption applies to supplies within the meaning of § 1 (1) no. 1 UStG, that is, supplies made in Germany (§ 19 (1) sentence 1 UStG). Once you pass the €10,000 threshold, the place of supply for distance sales is the country where the goods arrive (§ 3c (1) UStG). That supply is then no longer a German sale. The European Commission describes it for small enterprises: if the enterprise does not apply the small business scheme in that destination country, the supply is taxed there under the standard rules. It declares the supply there unless it is registered in the OSS.

This is independent of how far you are below €25,000 or €100,000. An example: last year you had €20,000 total turnover and this year you are at €45,000, of which €11,800 are distance sales to private customers in various EU countries. As a small business owner you stay VAT-exempt in Germany – but €11,800 is above the OSS threshold. From the sale that took you over €10,000, the VAT of the destination country applies to these sales.

What this means for you: Once you pass the €10,000 threshold, the exemption in § 19 UStG does not cover your sales abroad any more.

What are the three options above the threshold?

OSS. You register with the BZSt and report the VAT of the destination countries centrally each quarter. The EU Commission confirms this works for small enterprises: a small enterprise can use the exemption in its country of establishment and at the same time declare in the OSS the countries where it does not apply the exemption. How registration works: OSS registration in Germany: step by step.

Registration in the destination country. You register in every EU country you sell to and file that country's national VAT return. This is what the OSS is meant to spare you.

EU small business scheme (§ 19a UStG). With a registration with the BZSt you can use the small business exemption in other EU countries too. The duty to file a VAT return and pay VAT in the countries that approve your application then falls away. The requirements:

The German tax office treats your business as a business for VAT purposes.
Your annual turnover in the EU did not exceed €100,000 in the previous year and does not exceed it in the current year.
You meet the requirements of the member state in which you want to use the exemption; each member state has its own.
The application goes in exclusively electronically through the BZStOnline portal.

The BZSt checks the domestic requirements and forwards the application to the selected countries; you are exempt only in countries that approve in the decision. With the exemption, the right to deduct input VAT falls away as well. Each quarter you also report your total EU turnover to the BZSt, also as a nil return. This applies regardless of whether you used the EU scheme, the OSS or standard taxation for that turnover. The deadlines are:

30 April
31 July
31 October
31 January

The pros and cons of joining below the limit are in OSS below 10,000 euro, pros, cons and lock-in.

You can mix the options: use the EU small business scheme for one country and the OSS for another. In the same country you cannot use both at once.

What this means for you: Choose one of the three options above the threshold, and mix them per country if that suits you.

By when do I file the OSS return as a small business owner?

If you are registered in the OSS, you file the OSS return every quarter, even without sales. Return and payment are due by the end of the month after the quarter:

Quarter	Deadline
Q1	30 April
Q2	31 July
Q3	31 October
Q4	31 January of the following year

You file the return electronically in the BZStOnline portal. Everything on the process and deadlines: Filing the OSS return.

What this means for you: once registered, the quarterly rhythm applies even though you are a small business owner.

Which mistakes come up most often?

Mixing up the two limits. Staying below €25,000 does not mean you are below the OSS threshold.
Assuming the § 19 UStG exemption works everywhere. It covers sales made in Germany.
Carrying on selling without a registration. After passing the threshold the destination country's VAT applies; without OSS registration or registration in the country you have no way to declare it.
Applying for the OSS and the EU small business scheme for the same country. Both at once is not possible.
Missing the deadlines. The OSS return and the report under the EU scheme are due quarterly, by the end of the following month.
Assuming the EU scheme replaces the German one. They are independent of each other; you can use the EU scheme even if you do not apply the German small business scheme.

If you registered too late, see OSS registration too late: can you register retroactively?; for a wrong return, see Wrong OSS return: who is liable and what to do?.

What this means for you: Check this list: do not mix up the two limits and do not keep selling without a registration after passing the threshold.

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

The VAT GPT method has three steps:

Upload: You upload your sales reports (for example Amazon or eBay CSV files) and your invoices. The AI reads amounts, countries and tax rates.
Check: VAT GPT calculates your returns from this data and flags invoices with low confidence for manual review. You check and confirm.
Send: With VAT GPT Pro, the VAT returns and the other returns go through ELSTER to the tax office, the OSS return directly to the BZSt.

Are you just starting out? In the tax registration questionnaire for sole proprietorships, you choose in VAT GPT whether you apply the small business scheme or waive it. If you have passed the threshold and take part in the OSS, VAT GPT calculates the OSS return from your CSV reports and invoices. You check and confirm, and with VAT GPT Pro it goes directly to the BZSt. You apply for the OSS registration in the BZStOnline portal. Try VAT GPT

Frequently asked questions

Do I have to take part in the OSS as a small business owner? No, not as long as you stay below the €10,000 threshold. Above it you need a way to declare the destination countries' VAT: OSS, registration in the country or the EU small business scheme.

Does the €10,000 threshold apply to me as a small business owner? Yes. It applies to businesses established in only one EU country, regardless of the small business scheme.

Do my sales in Germany count towards the €10,000 threshold? No. Distance sales and the digital services mentioned are counted if they go to private customers in other EU countries.

Can I stay a small business owner and still use the OSS? Yes. The EU Commission confirms the two can be combined as long as you do not apply both for the same country.

What is the EU small business scheme? A reporting procedure with the BZSt (§ 19a UStG). It lets you use the small business exemption in other EU countries if your EU-wide annual turnover does not exceed €100,000 and the country approves.

Do I have to file nil returns in the OSS as a small business owner? Yes, if you are registered in the OSS: the return is due on the quarterly dates even without sales.

Can a small business owner use the OSS? Yes. The EU Commission confirms that a small business owner can use the exemption in the home country and declare in the OSS the countries where it does not apply.

Does the OSS apply to small business owners too? Yes. The €10,000 threshold (§ 3c Abs. 4 UStG) applies independently of the small business scheme. If you register in the OSS, you give up the threshold rule (BZSt).

Which turnover limit applies to the OSS return for a small business owner? €10,000 net in the previous year and the current year for distance sales and digital services to private customers in other EU countries. The €25,000 and €100,000 of § 19 UStG are a different limit.

Do I have to file an OSS return as a small business owner? Only if you are registered in the OSS. Then it is due every quarter, also as a nil return.