Glossary · UK
What is One Stop Shop (VAT)?
An EU VAT scheme letting a business report and pay VAT on cross-border sales to EU consumers through a single registration rather than registering in each member state.
Full Definition
The One Stop Shop (OSS) is an EU VAT simplification that allows a business to declare and pay VAT due on certain cross-border business-to-consumer sales across the EU through one single return, instead of registering for VAT in every member state where it has customers. Since Brexit, UK businesses selling goods or digital services to EU consumers may need to account for EU VAT, and OSS (or the Import One Stop Shop, IOSS, for low-value imported goods) can reduce the administrative burden. UK businesses typically register for OSS via an EU member state, as the UK is outside the EU scheme. This is separate from domestic UK VAT, where the registration threshold is GBP 90,000 of taxable turnover and the standard rate is 20%. OSS matters because it affects pricing, compliance and cash flow for UK exporters and online sellers trading into the EU. Confirm current EU rules and rates with the relevant authority.