The UK's position is different from the EU continent because the United Kingdom is not an EU Member State.

UK businesses selling to EU consumers may nevertheless be able to use the EU's One-Stop Shop schemes for qualifying transactions.

This Q&A explains the main OSS considerations for UK-established businesses selling to EU customers.

Q1: Can a UK business use OSS?

A: Yes, in certain circumstances.

However, there is no UK domestic OSS scheme equivalent to an EU Member State's Union OSS.

Depending on the transactions being made, a UK-established business may potentially use:

• Union OSS for qualifying intra-EU supplies where the applicable conditions are met
• Non-Union OSS for qualifying B2C services supplied to EU consumers

A UK business using an EU OSS scheme must deal with an appropriate EU Member State of Identification.

OSS should also not be confused with IOSS (Import One-Stop Shop), which applies to certain distance sales of goods imported from outside the EU in consignments not exceeding the applicable value threshold.

Q2: How often do I need to file an OSS return?

For Union OSS and Non-Union OSS, returns are filed quarterly.

⚠️ The OSS deadline remains the last day of the month following the quarter, including where that date falls on a weekend or public holiday.

Q3: What transactions should a UK business include?

A: This depends on which OSS scheme the business is using.

Potentially reportable transactions can include:

• Qualifying intra-EU B2C distance sales of goods under Union OSS
• Qualifying B2C services supplied to EU consumers under the applicable OSS scheme
• Relevant corrections to previous OSS filings

Do NOT automatically include:

• UK domestic sales
• All exports from the UK to EU consumers
• B2B transactions outside the scope of OSS
• Transactions that do not qualify for the particular OSS scheme being used

⚠️ Goods shipped directly from Great Britain to EU consumers are imports into the EU. They should not automatically be treated as Union OSS sales merely because the customer is located in an EU country.

Depending on the circumstances, IOSS or normal import VAT arrangements may instead be relevant.

Q4: What are my responsibilities when using EU OSS?

You must:

• Provide complete and accurate transaction data for each reporting period
• Upload your data to hellotax on time
• Correctly identify transactions belonging to the OSS scheme
• Pay the VAT due within the required deadline
• Keep the required OSS records for 10 years
• Submit the required OSS return even where there are no qualifying transactions during the reporting period

Q5: What happens if I submit late or incomplete OSS data?

Late or incomplete data may mean:

• Your OSS return cannot be prepared or filed on time
• VAT payment may be delayed
• Interest or penalties may apply
• Relevant EU Member States may take compliance action
• Manual intervention by hellotax may be required, with the applicable €119 fee per affected filing

Persistent failure to meet OSS obligations can ultimately result in exclusion from the scheme, subject to the applicable EU rules.

Q6: How does a UK business pay OSS VAT?

OSS VAT is paid to the tax authority in the business's EU Member State of Identification, rather than to HMRC.

That Member State then distributes the VAT to the relevant EU Member States of consumption.

👉 Key points:

• OSS payments are generally made in EUR
• OSS VAT is separate from UK VAT payable to HMRC
• Use the correct payment details and reference provided for the OSS return
• Make sure payment reaches the appropriate EU tax authority within the deadline

Q7: What are the “do’s and don’ts” for UK businesses using OSS?

✅ DO:

• Confirm which OSS scheme applies to your business
• Report all qualifying transactions
• Upload complete data to hellotax on time
• Keep the required OSS records for 10 years
• Pay VAT to the appropriate EU Member State of Identification
• Check whether IOSS rather than OSS applies to goods imported into the EU

❌ DON'T:

• Treat OSS as a UK VAT return
• Pay EU OSS VAT to HMRC
• Assume all sales from the UK to EU consumers belong in OSS
• Confuse OSS with IOSS
• Include transactions that fall outside your particular OSS scheme
• Send filing data to hellotax by email

Q8: How can hellotax help?

hellotax can support eligible UK businesses with:

• Determining the appropriate EU VAT reporting setup
• Preparation of applicable OSS returns
• Compliance checks
• Guidance on the data required
• Filing through the appropriate EU Member State
• Corrections or late filings where required

Because the appropriate solution depends on where your goods are located, where they are shipped from and the type of supplies you make, contact your hellotax Account Manager if you are unsure whether Union OSS, Non-Union OSS, IOSS or a local VAT registration applies.

🔑 Summary

• The UK does not operate an EU OSS scheme through HMRC
• UK businesses can nevertheless use EU OSS schemes where eligible
• Union and Non-Union OSS returns are generally quarterly
• OSS VAT is paid through the relevant EU Member State of Identification
• Goods shipped from Great Britain directly to EU consumers are imports and do not automatically belong in Union OSS
• IOSS may be relevant for qualifying imported consignments
• OSS records must generally be retained for 10 years
• Accurate and timely data is essential

👉 If your UK business sells to EU consumers, contact your hellotax Account Manager if you are unsure which VAT reporting scheme applies.