OSS – what is it, who is it for and when does it apply?

by Dorota Walerjan

24 June 2025

Traders who want to reach as many customers as possible often decide to sell their goods and services in other member states of the European Union. Although this may lead to measurable economic benefits, it also requires them to consider additional tax matters.

The e-commerce package entered into force on 1 July 2021, and with it the OSS, that is the One Stop Shop scheme which is intended to help international businesses.

TABLE OF CONTENTS

What is the OSS?
OSS – who does it apply to?
Key information on the OSS
Advantages of the OSS Is it worth using?
How to register for the OSS?
Does the OSS apply to B2B transactions?
How to account for VAT under the OSS?

What is the OSS?

The OSS is a VAT accounting scheme that succeeds the MOSS (mini One Stop Shop). It simplifies the accounting for the online sales of goods and services to consumers (that is natural persons who do not buy the goods and services as part of their business) from other EU member states. The tax is declared in a single tax return which covers all transactions.

The OSS (which has replaced the MOSS) has changed the online sales thresholds to EU member states. Individual thresholds for individual states have been replaced by one threshold of EUR 10,000 (net) for all annual sales within the EU. Generally, companies which sell goods and services to other EU member states and exceed this threshold must register for VAT in the destination state. They must also file VAT returns in the member state of the customer. On the other hand, sales under this threshold can be accounted for like domestic sales.

Thanks to the OSS, sellers can account for VAT by filing only one return in their state, regardless of how many EU member states they sell their goods in. In Poland, this return is submitted to the Second Revenue Office Warszawa-Śródmieście.

OSS – who does it apply to?

The OSS applies to sellers – taxable persons, including traders exempt from VAT. This is an extension of the MOSS which limited the simplified accounting for VAT to traders providing telecommunications, broadcasting and electronically supplied services within the EU.

The OSS is available to online sellers who offer their goods and services to consumers in other EU member states (B2C).

Key information on the OSS

The OSS allows traders to submit a quarterly tax return online and make one payment of VAT on transactions with consumers across the EU. However, taxable persons who apply this scheme must tax their sales according to the VAT rate of the member state of the customer.

The registration for the OSS is voluntary. The seller can choose between this registration and the registration for VAT purposes in each EU member state where he makes sales.

After registering with the OSS, all transactions with consumers from EU member states must be accounted for according to this scheme.

Non-EU suppliers can also use the OSS in the sales of services to consumers from the EU, even if they have no fixed establishment. In such cases, the non-Union scheme applies.

Please note, that unlike the OSS, the MOSS applied only to sellers from EU member states.

Advantages of the OSS. Is it worth using?

According to the explanatory notes to the act which introduced the VAT e-commerce package, the OSS is intended (like the MOSS) to simplify VAT obligations for taxable persons who supply goods and services to consumers in the EU. It seems that the OSS fulfils its purpose, as the registration for the scheme brings at least the following benefits:

simpler accounting for VAT – thanks to the OSS, traders can declare and account for VAT on cross-border transactions in one member state;
no need for multiple registrations – instead of registering in every member state they make sales in, traders can register only once for the OSS;
lesser risk of failures in accounting for VAT.

How to register for the OSS?

In order to account for VAT in the OSS, registration is necessary. The registration is voluntary and up to the seller.

He can register in the member state of identification, that is in the state where he is established. In Poland, he can register for the Union scheme by filing the online application (VIU-R form: „Zgłoszenie informujące w zakresie szczególnej procedury unijnej rozliczania VAT” [Registration for the special VAT Union scheme]) online the Head of the Second Revenue Office Warszawa-Śródmieście via the system e-Deklaracje. In order to register for the non-Union scheme, on the other hand, he must file the VIN-R application. To submit it effectively, he must use the qualified electronic signature.

Generally, the registration is effective from the first day of the calendar quarter following the quarter in which the taxable person submits the registration application, unless the taxable person started to supply goods or services before this day. In such a case, the sales is accounted for using the Union scheme from the first day the sales are made, provided that the taxable person notifies the Head of the Second Revenue Office Warszawa-Śródmieście that he has started business under the Union scheme.

Does the OSS apply to B2B transactions?

The OSS applies only to traders who sell goods or services to consumers, that is natural persons who make purchases outside their business (B2C). Therefore, the OSS does not apply to B2B transactions.

How to account for VAT under the OSS?

A taxable person who has been identified for the purposes of the OSS by the Head of the Second Revenue Office Warszawa-Śródmieście must submit VAT returns in which the provided services, the Intra-Community distance sales of goods or the qualified domestic supplies are declared to this authority via the system e-Deklaracje (made easier by operators of electronic interfaces deemed suppliers).

VAT returns are submitted for quarterly periods by the end of the month following each quarter, no matter if any B2C transactions were concluded in the given quarter.

The tax return must show, among others, the VAT due in all member states of consumption where the goods or services are supplied. The tax is charged at the rates applicable in the member states, where the goods and services are sold.

Under the OSS, only one tax return for each accounting period may be filed. If the VAT return must be adjusted after it has been submitted, the adjustment is made in the following return within 3 years after the original return filing deadline.

The taxable person pays the total amount of the output VAT disclosed in the VAT return by the end of the month following each quarter to the bank account of the Second Revenue Office Warszawa-Śródmieście. VAT must be paid in euro. Then, the authority divides the payment between the member states of consumption.

Payments must indicate the reference number of the VAT return (UNR) they relate to. If this number is not indicated, it is impossible to divide and transfer the payments to the member states of consumption. Consequently, the payment is reimbursed to the taxable person who may face tax arrears payable directly to the member states of consumption. The same applies if the payment is made after the deadline.

On the other hand, potential overpayments are cleared by the Head of the Second Revenue Office Warszawa-Śródmieście or the tax administration of the member state of consumption, depending on the reason for and the timing of the overpayment.

Under the OSS, the taxable person must record transactions covered by this scheme. These records have to be kept for 10 years after the end of the year in which the transaction is made..

Do you have questions about the OSS? Contact our experts – we will be happy to clear any doubts and help to navigate through the process smoothly.