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If you sell to the EU in 2026, chances are you're already familiar with the “One Stop Shop” (OSS). The system has been around since 2021 and most e-commerce companies that sell across borders are already using it. But the fact that OSS has been set up does not mean that everything is compliant. In our experience, many teams only encounter real problems when they serve multiple EU markets and have to closely monitor the VAT obligations in each country.
In recent years, the EU has changed the landscape considerably. Companies that set up OSS in 2021 will notice in 2026 that some rules and thresholds have been changed. That's why the key question this year is: Is your current OSS setup still compliant, especially with the implementation of the VAT in the Digital Age (ViDA) reforms?
What is the EU One Stop Shop Really?
When the EU introduced the OSS on July 1, 2021, the idea was simple: companies that sell in multiple EU countries only need to register for VAT in one member state. That sounds simple, but in practice, we have often seen that this only works if you properly coordinate the processes and systems.
The system helps companies with cross-border B2C transactions by providing one central portal for VAT registration, reporting and payment. This applies to both EU and non-EU companies, including service providers and marketplaces. But OSS doesn't automatically eliminate all other VAT obligations; physical inventory or complex supply chains may still require local registration.
The €10,000 limit: small but crucial
Many teams underestimate the €10,000 annual threshold for combined cross-border B2C sales of certain digital services and goods. As long as you stay below that limit, you can charge VAT from your home country. But once you get up there, you have to pay VAT in the customer's country. In our experience, teams often notice that this only becomes clear when sales rise sharply, and that it is too late to adjust processes.
The three OSS regulations and where the pitfalls lie
The EU OSS system consists of three variants: Union OSS, Non-Union OSS and Import OSS (IOSS). In theory, it seems clear, but we have often seen that daily practice is more complex:
- Union OSS: for companies based in the EU. The MSI is simple: the country of residence. But even here, we see teams struggling with the new €10,000 threshold for TBE services.
- Non-Union OSS: for companies without an EU office. Here, you can choose any member state as an MSI, but that means choices that should support you operationally. We have helped customers who registered incorrectly and later had to correct them.
- Import OSS (IOSS): for imports of goods up to €150. The system simplifies VAT for small imports, but we often see that teams forget that they have to follow different rules for shipments over €150.
A common mistake is thinking that OSS solves everything. In reality, it remains crucial to understand where your inventory is and what local rules apply there.
Automation can help, but it's not magic
We've often seen companies use tax tools like Taxjar or Avalara. They certainly help: automatic calculations, OSS reports, monitoring rules. But if the basic processes aren't right, software won't solve the core problems. It remains essential to understand why a transaction is taxable in a particular country and how that affects your entire process.
Marketplaces and platforms: responsibility often lies elsewhere
An important development in EU VAT is that online marketplaces and digital platforms bear more responsibility. If you sell via a platform like Amazon, the platform can collect VAT itself for certain sales, especially for imports under €150. Teams that overlook this often get surprises during audits or reconciliations.
Why inventory locations still bring complexity
This is one of the biggest challenges we see in practice. Let's say you're using Pan-European FBA via Amazon and your inventory is automatically distributed across multiple EU warehouses. It seems efficient, but it can create VAT obligations in multiple countries, even if you're not actively serving those countries. For fast-growing salespeople, this can cause unexpected complexity and stress for the team.
What will 2026 bring? OSS and ViDA
The VAT in the Digital Age (ViDA) reforms, in effect since March 2025, expand OSS and prepare the EU VAT system for the platform economy. For e-commerce companies, this means practical changes:
- More types of products are covered by OSS, including domestic goods, goods that require installation, and energy products
- E-invoicing will be mandatory from 2030
- The goal: a single registration for more VAT obligations
In our experience, this will force many teams to review their processes, especially around multi-channel sales and inventory management.
Three lessons we share from experience
- OSS simplifies but does not eliminate all VAT registrations
- Marketplace rules can have an impact, especially when it comes to imports
- Monitor warehouse locations: fulfillment networks can create complex VAT obligations
Conclusion
OSS and IOSS make cross-border B2C sales clearer, but VAT remains a reality that you need to actively manage. Companies that understand what really happens with each transaction and build processes on experience avoid surprises.
In 2026, OSS will be used more widely, but the core remains the same: practical knowledge, attention to detail and insight into how systems and processes intersect make the difference.
