OSS vs. IOSS: Key Differences and Application to Your Business

OSS (One-Stop Shop) is a voluntary EU VAT scheme simplifying B2C cross-border sales reporting for intra-community distance sales and services, allowing businesses to file a single VAT return instead of multiple registrations across EU countries.
There are three OSS types: Union OSS for EU-established businesses, Non-Union OSS for non-EU suppliers of B2C services, and IOSS for distance sales of imported goods under €150, which exempts import VAT and requires monthly returns.
Union OSS covers intra-community goods sales and certain B2C services; Non-Union OSS applies to non-EU service providers; IOSS is designed for imported goods sales, easing VAT payment by registering in one Member State or appointing an intermediary if non-EU based.
OSS returns are generally filed quarterly, while IOSS declarations require monthly submission. Registration depends on business location, stock presence, and transaction types, with intermediaries mandated for non-EU companies using IOSS.
OSS and IOSS streamline VAT compliance, reduce administrative burdens, minimize tax risks, and support faster EU market expansion. Services like Marosa and Vatify assist businesses with registration, return filing, and VAT compliance management across EU jurisdictions.