Overview

The United Kingdom is not part of the EU OSS system, but UK-established businesses may use an EU OSS scheme for qualifying transactions where the applicable conditions are met.

Unlike an EU-established business, a UK business does not submit an OSS return to HMRC. Instead, the business uses the appropriate EU Member State of Identification.

To ensure your filing is complete and compliant, it is important to understand which transactions belong in your EU OSS return and which transactions must be reported elsewhere.

✔️ What May Be Included in Your EU OSS Quarterly Filing

The transactions included depend on the OSS scheme your UK business is registered for.

1. Qualifying Intra-EU B2C Goods Sales

A UK-established business may use Union OSS for qualifying intra-EU distance sales of goods.

For example, where goods are already located within the EU:

• Goods shipped from Germany → France
• Goods shipped from Poland → Italy
• Goods shipped from Czech Republic → Austria

Qualifying transactions can include:

• Marketplace sales
• Webshop sales
• Manual cross-border B2C orders

⚠️ Goods shipped directly from Great Britain to an EU consumer are imports into the EU and should not automatically be included in Union OSS.

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

2. Qualifying B2C Services to EU Consumers

UK businesses supplying certain services to EU consumers may be able to use Non-Union OSS.

This can include qualifying services such as certain:

• Digital and electronically supplied services
• E-books and online media
• Downloadable digital products
• Software and SaaS
• Streaming or subscription-based digital services

The appropriate OSS treatment depends on the nature of the service and where it is taxable.

3. VAT Charged at the Applicable EU Destination Rate

For transactions reported through OSS, VAT is generally determined according to the applicable rules and rate in the EU Member State of consumption.

Your transaction data must therefore contain sufficient information to determine:

• The Member State of consumption
• The applicable VAT rate
• The correct VAT amount

❌ What Is NOT Included in Your EU OSS Filing

1. UK Domestic Sales

Sales taking place within the UK are not reported through EU OSS.

Where applicable, these belong in your UK VAT return to HMRC.

2. B2B Transactions

OSS is intended for qualifying B2C supplies.

B2B transactions are not reported through OSS and must be treated according to the applicable VAT rules.

3. Goods Exported Directly from Great Britain to EU Customers

Goods shipped directly from Great Britain to an EU consumer are being imported into the EU.

These transactions should not automatically be reported through Union OSS.

Depending on the circumstances, IOSS or other import VAT arrangements may apply.

4. Movement of Your Own Stock

Transfers of your own stock between warehouses in different EU countries are not B2C sales and are not reported through OSS.

However, holding or moving stock within the EU can create separate local VAT registration and reporting obligations.

5. Non-EU Consumer Sales

Sales to consumers outside the EU do not belong in an EU OSS return.

⚠️ Important: Nil / Zero Filings

If your business is registered for an OSS scheme and has no reportable transactions during a reporting period, the applicable OSS return must still be submitted.

📝 Summary

Providing complete and accurate data helps ensure your EU OSS return is prepared correctly and submitted through the appropriate Member State of Identification.

If you are unsure whether a transaction belongs in Union OSS, Non-Union OSS, IOSS, a domestic UK VAT return or a local EU VAT return, contact your hellotax Account Manager before making changes to your VAT reporting setup.