E-commerce, OSS and EU VAT
How the One Stop Shop simplifies cross-border B2C VAT, the EU distance-selling threshold, and when you charge the customer's rate.
If you sell goods or digital services online from Ireland to consumers in other EU countries, VAT gets more involved than a single domestic rate. Under the EU e-commerce VAT rules, once your total cross-border B2C sales across the EU exceed a single low threshold, you must charge VAT at the rate of the customer's country rather than the Irish rate. The One Stop Shop (OSS) is the mechanism that keeps this manageable: instead of registering for VAT in every member state where you have customers, you register for OSS once — through Revenue in Ireland — and file a single periodic return that covers all your EU B2C sales, with Revenue distributing the VAT to each country. Getting this right depends on knowing each customer's location and the correct local rate, which is exactly the kind of thing your invoicing system should handle for you.
- Cross-border B2C sales above a single low EU-wide threshold are taxed at the customer's rate.
- The One Stop Shop (OSS) replaces registering for VAT in every member state.
- You register for OSS once through Revenue and file one return covering all EU B2C sales.
- Correct VAT depends on the customer's country and its local rate, applied per sale.
How it works
Know the threshold. The EU sets a single, low pan-EU threshold for cross-border B2C sales of goods and digital services. Below it you can charge Irish VAT; once your combined EU distance sales exceed it, you charge the VAT rate of each customer's country.
Decide on OSS. Without OSS, charging another country's VAT would mean registering for VAT in that country. The One Stop Shop lets you avoid that: you register for the OSS scheme once, through Revenue, and account for all your EU B2C VAT in one place.
Charge the right local rate. For each cross-border B2C sale, you apply the VAT rate of the customer's member state. That means your system needs to determine where the customer is and apply the correct local rate at the point of sale, not the Irish rate.
File the OSS return. You submit a single periodic OSS return through Revenue covering all your EU B2C sales, broken down by country, and pay the total. Revenue then distributes the VAT to each member state, so you deal with one tax authority instead of many.
Keep B2B separate. OSS is for B2C distance sales. Business-to-business cross-border supplies follow different rules (such as the reverse charge), so your invoicing needs to tell the two apart and treat each correctly.
Legal basis
- EU e-commerce VAT package — the pan-EU distance-selling threshold and OSS.
- Value-Added Tax Consolidation Act 2010 (as amended) — Irish implementation.
- Revenue guidance on the One Stop Shop (OSS) and registration through ROS.
Frequently asked questions
What is the One Stop Shop (OSS)?
OSS is an EU scheme that lets you account for the VAT on your cross-border B2C sales through a single registration and a single return, rather than registering for VAT in every member state where you have customers. In Ireland you register for and file OSS through Revenue, which distributes the VAT to each country.
When do I charge another country's VAT rate?
Once your total cross-border B2C sales across the EU exceed the single pan-EU distance-selling threshold, you charge VAT at the rate of each customer's country instead of the Irish rate. Below the threshold you can charge Irish VAT. OSS is the practical way to handle charging those local rates.
Do I have to register for VAT in every EU country I sell to?
No — that is precisely what OSS avoids. You register once for the OSS scheme through Revenue and file one periodic return covering all your EU B2C sales by country. Without OSS, charging local VAT would otherwise require a VAT registration in each of those countries.
Does OSS cover business-to-business sales?
No. OSS is for business-to-consumer (B2C) distance sales of goods and digital services. Cross-border B2B supplies follow separate rules, such as the reverse charge, where the business customer accounts for the VAT. Your invoicing should distinguish B2C from B2B and apply the correct treatment to each.
How does my invoicing software help with OSS?
It applies the correct VAT rate based on the customer's country, separates B2C from B2B supplies, and totals your cross-border sales by country so the OSS return is straightforward to compile. Instead of looking up rates and reconciling spreadsheets, you get figures that line up with what you file through Revenue.