Union One Stop Shop (UOSS): A Guide for E-commerce Sellers

What it is, who needs it, and the mistakes companies often make.

The Union One Stop Shop (UOSS) is the EU’s simplified VAT scheme for businesses selling goods and certain services to consumers within the European Union. It was introduced to make cross-border VAT compliance easier and to eliminate the need for multiple VAT registrations across EU countries.

This article explains:

• What the Union OSS actually is
• Whether your company needs it
• Common misconceptions
• Considerations for EU vs. non-EU companies

What Is the Union One Stop Shop?

It's an optional scheme that allows businesses to file a single VAT return for all intra-EU B2C distance sales of goods. Instead of registering for VAT in every EU country where your customers are located, you register once in your country of establishment (if you are an EU company) or in whichever country you pick (if you are not based in the EU, see below). And you report all cross-border consumer sales there. It doesn't apply to business sales.

In practical terms, if you sell something from your warehouse in Germany to a consumer in Denmark, you have to declare and pay VAT to Danish tax authorities.

Let's say the article is worth €10, so you are selling for €12.50 VAT inclusive (25% is the VAT rate in Denmark at the time of writing). You owe €2.50 in VAT. If you don't have UOSS registration, you have register for VAT in Denmark. If you do, you declare this on UOSS.

Do I Need UOSS Registration?

Whether you need Union OSS depends on where your company is based (EU or non-EU) and your sales channels (marketplace or DTC). Below, we split this guidance into EU companies and non-EU companies.

EU Companies

If you sell on Amazon or your own DTC website cross-border, you need it 100%.

You want to avoid registering for VAT in each EU country. Without UOSS, even if you make negligible sales to another EU country, you have to declare VAT there. So get into UOSS before you even inbound goods to Amazon. EU companies have to report, collect and pay VAT on their own, Amazon is not obligated to help or even tell them.

Non-EU Companies

If you only sell on Amazon or other marketplaces, you do not need this scheme. Marketplaces such as Amazon are legally required to report, collect and remit all VAT on behalf of companies that are not based in the EU. So you do not need to worry about this scheme.

Only if you want to sell via your Direct-To-Consumer (DTC) channel cross-border, such as a Shopify store, you need to register for UOSS. In that case, you need to collect and remit VAT yourself like any other company operating in the EU.

FAQ

Can we replace VAT numbers in individual countries with UOSS registration?

No. You have to be VAT registered in each country where you store goods. If you sell on Amazon and use FBA, you have to be registered wherever you enable storage in FBA Fulfillment Settings.

Does UOSS cover all cross-border sales?

UOSS only covers consumer (B2C) sales. That means only sales to final consumers are declared here. If you sell to businesses, you have to declare these sales on your local return and the recipient needs to declare VAT in their country (reverse charge applies).

Following up on our earlier example, if you sell an article from Germany to a Danish business customer worth €10, you sell without VAT and declare this on your German return. The Danish company declares this purchase in Denmark on their VAT return, so they should pay €2.50 to Danish authorities (however, they usually deduct it because it's likely treated a business expense).

Minefield Navigator UOSS

We can support both EU and non-EU companies with UOSS registration and filing. If you are a non-EU company, we can handle your UOSS registration and filing no matter the country of incorporation.

As for EU based companies, we only handle registration and filings if your company is based in Germany or the Czech Republic at the moment. If you are incorporated in another country, we are still able to provide the inputs for your return, so it becomes very easy for you to fill it out in your home country.