Business-to-consumer – OSS, IOSS, MOSS

The EU has set up a number of schemes to facilitate business-to-consumer eCommerce for sellers located both within the EU and outside it.

Common features of these schemes:

• VAT is dealt with at the point of sale, so the seller can provide an “all-inclusive” price on websites.  Carriers no longer need collect money at the point of delivery
• Seller can sell to any EU country, but need only register in one EU country, and submits a single VAT return covering sales throughout the EU

OSS (One-Stop Shop)

This replaces an earlier scheme, MOSS (Mini One-Stop Shop)

OSS comes in two forms

• Union OSS – seller must be in EU
• Non-Union OSS – seller outside EU

IOSS (Import One-Stop Shop)

This new scheme was introduced in July 2021

Similar in operation to OSS, but with a maximum sale value of EUR 150.

Note that this threshold applies to the complete order, and not to the individual items within the order

VAT rates vary from one EU country to another, so the seller’s website prices and VAT reports must reflect these.