Overview

The EU’s One Stop Shop (OSS) scheme comes with strict legal obligations established by EU VAT legislation and enforced by national tax authorities. Businesses using OSS must follow these rules to remain compliant.

This article explains your legal responsibilities under OSS and what is required from you as a registered OSS participant.

⚖️ Your Legal Obligations Under EU OSS Rules

OSS participants must follow the compliance framework set out by the EU VAT Directive (Council Directive 2006/112/EC) and the Implementing Regulation (EU) 2019/2026.

Below are the key obligations.

1. File Your OSS Return Every Quarter

You are legally required to:

• Submit an OSS VAT return every quarter, even if no sales were made (“zero return required”).

• Submit the return by the official EU deadline for the scheme you are registered in.

Failure to file on time may result in:

• Penalties

• Late-interest

• Suspension or exclusion from the OSS scheme

2. Pay the VAT Declared in Your OSS Return

The VAT due in your OSS return must be paid in full and on time to the tax authority administering your OSS registration (e.g., Bundeszentralamt für Steuern for Germany).

Late payment may result in:

• Interest charges

• Additional penalties

• Enforcement measures

3. Keep Complete and Accurate Records for 10 Years

EU law requires OSS users to:

• Keep records of all cross-border B2C transactions for 10 years

• Make them available electronically to any EU tax authority upon request

These records must include:

• Customer country

• Value of sale

• VAT rate used

• VAT amount

• Evidence of customer location

• Marketplace/platform details (if applicable)

4. Provide Accurate, Complete Transaction Data

You must ensure:

• All reportable cross-border B2C transactions are included

• VAT rates for each country are correct

• Uploaded data is accurate and free of gaps

Incorrect or missing information may lead to:

• Incorrect filings

• Follow-up queries from tax authorities

• Penalties or corrections at your expense

5. Notify Authorities of Changes

Under OSS rules, you must notify your OSS member state if:

• Business details change (address, legal form, contact details)

• VAT number changes or is deregistered

• You cease selling cross-border B2C in the EU

• You switch schemes (e.g., move to IOSS or deactivate OSS)

• Changes to warehouse storage 

6. Do Not Double-Report VAT

If you are registered in OSS:

• Cross-border EU B2C sales must not be reported in domestic VAT returns

• Double-reporting may cause audits or mismatches and will cause double taxation

7. Cooperate With Tax Authorities

You must respond to:

• Audit requests

• Information requests

• Record-checking

• Any compliance review carried out by any EU tax authority

Failure to cooperate can result in exclusion from the OSS scheme.

🟦 Summary of Your Legal OSS Responsibilities

Need Help Staying OSS-Compliant?

hellotax ensures your OSS filings meet all EU requirements, but your data accuracy and timely uploads are essential to maintaining compliance under EU law.