Digital Services VAT for Non-EU Sellers: Non-Union OSS, Place of Supply & Compliance (2026)
Since 2015, non-EU businesses selling digital services to EU consumers must charge EU VAT. The Non-Union One Stop Shop (OSS) simplifies this: one registration, one quarterly return, one payment. This guide covers registration, place of supply, VAT rates, invoicing, and enforcement. Updated September 2026.
Quick Answer: Do You Need Non-Union OSS?
✅ YES, if you sell:
Digital services to EU consumers (B2C) and you have no EU establishment (no branch, office, or fixed establishment in the EU — a server alone does not create one).
❌ NO, if:
You have an EU branch/subsidiary → use Union OSS in that country.
You sell physical goods → use IOSS (≤ €150) or standard import.
You sell to EU businesses (B2B) → reverse charge, client self-accounts.
💰 Threshold:
Zero. First euro of digital sales to EU consumers triggers obligation.
📦 What Counts as Digital Services:
SaaS, streaming, downloads, e-books, online courses, web hosting, domains, online ads, gaming, apps, cloud storage. Not: live human services (coaching via Zoom, consulting).
Place of Supply Rules (Article 58, Directive 2006/112/EC)
B2C Digital Services → Consumer's Location
The VAT is due where the consumer is established, has their permanent address, or usually resides.
Presumption Rules (Article 24a, Implementing Regulation 282/2011)
Use two non-contradictory pieces of evidence from:
- Billing address
- IP address (geolocation)
- Bank/credit card country
- SIM country code (mobile)
- Fixed landline location
- Contract/premise address
Example: US SaaS → German Consumer
Evidence: Billing address Munich + German credit card + German IP.
Conclusion: Consumer in Germany → German 19% VAT applies.
Action: Charge 19% VAT, report via Non-Union OSS.
Conflict Resolution
- If evidence conflicts, no single item decides alone — weigh at least two non-contradictory pieces together (billing address, IP, payment country, SIM, contract address)
- If still unclear after weighing, document the determination process and seek advice before filing
- Document your determination process
What Counts as Digital Services (Annex II)
| Category | Examples | VAT Treatment |
|---|---|---|
| Streaming | Netflix, Spotify, YouTube Premium, Twitch subs, sports streaming | Digital → OSS |
| Software/SaaS | Microsoft 365, Adobe CC, Salesforce, Slack, Notion, Figma, GitHub, AWS, Azure | Digital → OSS |
| Downloads | Games, apps, e-books, music, movies, templates, stock photos | Digital → OSS |
| Online Courses | Udemy, Coursera, pre-recorded webinars, automated training | Digital → OSS |
| Cloud/Hosting | Web hosting, domain registration, cloud storage, CDN, email hosting | Digital → OSS |
| Online Ads | Google Ads, Meta Ads, programmatic, affiliate platforms | Digital → OSS |
| Gaming | In-game purchases, subscriptions, battle passes, virtual currency | Digital → OSS |
| Telecom/Broadcast | VoIP, IPTV, radio streaming, TV streaming | Digital → OSS |
| Automated Teaching | Language apps (Duolingo), coding platforms, AI tutors | Digital → OSS |
Last verified: 25 September 2026. Sources: EU Commission VAT rates, ECB euro reference rates and national tax authorities. Confirm with your local authority before filing.
NOT Digital (Live Human = Outside OSS)
- Live coaching/consulting via Zoom (human delivers in real-time)
- Live webinars with Q&A
- Personal training via video call
- Therapy/counseling sessions
- Legal/accounting advice via video
Test: Can the service be delivered with minimal human intervention? If yes → digital. If human is essential → not digital.
Non-Union OSS Registration: Step-by-Step
Choose Your MSI (Member State of Identification)
Pick ONE EU country as your "home" for OSS. You'll register, file, and pay there.
| Popular MSI | Portal | Language | Best For | VAT ID Format |
|---|---|---|---|---|
| Ireland 🇮🇪 | ROS (Revenue.ie) | English | US/UK/English-speaking, tech/SaaS | EUIE + 10 digits |
| Germany 🇩🇪 | BZSt / ELSTER | DE/EN | Large EU market, strict but predictable | EU + 10 digits |
| Netherlands 🇳🇱 | Mijn Belastingdienst | NL/EN | EU gateway, digital-friendly | EUNL + 10 digits |
| Belgium 🇧🇪 | MyMinfin | FR/NL/EN | Central, multilingual | EUBE + 10 digits |
| France 🇫🇷 | impots.gouv.fr | FR/EN | Large market, French-speaking | EU + 10 digits |
Recommendation: Ireland (ROS) for English-speaking businesses — fully English portal, responsive, used by Google, Meta, Microsoft for their Non-Union OSS.
Registration Process (Ireland Example)
- Go to ROS.ie → "Register for ROS"
- Choose "Non-resident trader" → "Non-Union OSS"
- Provide: legal name, address, contact, bank details (SEPA IBAN), authorized signatory
- Submit → receive ROS access number (post)
- Activate ROS cert → log in → "Manage Tax Registrations" → "Non-Union OSS"
- Receive Non-Union OSS VAT ID:
EUIE1234567890
Required Information
- Business legal name + address (non-EU)
- Contact person + email + phone
- SEPA IBAN for refunds/payments (Wise/Revolut Business EU IBAN works)
- Date of first EU digital supply
- Expected quarterly turnover per EU country
- Website/app URLs where services supplied
EU VAT Rates 2026 (Digital Services = Standard Rate)
Digital services almost always taxed at standard rate in each country:
| Country | Code | Standard Rate | Population (M) |
|---|---|---|---|
| Germany | DE | 19% | 83 |
| France | FR | 20% | 68 |
| Italy | IT | 22% | 59 |
| Spain | ES | 21% | 47 |
| Poland | PL | 23% | 37 |
| Netherlands | NL | 21% | 17 |
| Belgium | BE | 21% | 11 |
| Romania | RO | 21% | 21 |
| Sweden | SE | 25% | 10 |
| Denmark | DK | 25% | 6 |
| Austria | AT | 20% | 9 |
| Portugal | PT | 23% | 10 |
| Czechia | CZ | 21% | 10 |
| Greece | GR | 24% | 10 |
| Hungary | HU | 27% | 9 |
| Ireland | IE | 23% | 5 |
| Finland | FI | 25.5% | 5 |
| Slovakia | SK | 23% | 5 |
| Croatia | HR | 25% | 4 |
| Lithuania | LT | 21% | 3 |
| Slovenia | SI | 22% | 2 |
| Latvia | LV | 21% | 2 |
| Estonia | EE | 24% | 1 |
| Cyprus | CY | 19% | 1 |
| Luxembourg | LU | 17% | 0.6 |
| Malta | MT | 18% | 0.5 |
Full calculator: VAT Calculator (select country, auto-fills rate)
Invoicing for Non-Union OSS
Mandatory Invoice Fields
- Your business name + non-EU address
- Your Non-Union OSS VAT ID (e.g.,
EUIE1234567890) - Consumer name + address (or "Private Individual")
- Invoice number (sequential)
- Invoice date
- Description of digital service
- Net price
- VAT rate of consumer's country
- VAT amount
- Gross total
- Currency (EUR or other + ECB rate)
- Reference: "Non-Union OSS — VAT charged at consumer's location"
Invoice Template
ACME SAAS INC. 100 Market St, San Francisco, CA 94102, USA Non-Union OSS VAT ID: EUIE1234567890 INVOICE SAAS-2026-04521 Date: 2026-09-15 BILL TO: Hans Mueller Musterweg 10, 80331 Munich, Germany DESCRIPTION QTY NET PRICE VAT 19% GROSS Pro Plan Monthly Subscription 1 €49.00 €9.31 €58.31 ────────────────────────────────────────────────────────────── NET TOTAL €49.00 VAT 19% (DE — Non-Union OSS) €9.31 GROSS TOTAL €58.31 Non-Union OSS — VAT charged at consumer's location (Germany 19%) OSS VAT ID: EUIE1234567890 Payment: Stripe / Credit Card
Quarterly Filing & Payment
Return Structure (Per EU Country)
| Field | Example |
|---|---|
| Member State of consumption | DE |
| VAT rate | 19% |
| Taxable amount (net) | €125,000 |
| VAT due | €23,750 |
Deadlines 2026
| Quarter | Period | Deadline |
|---|---|---|
| Q1 2026 | Jan–Mar | Apr 30, 2026 |
| Q2 2026 | Apr–Jun | Jul 31, 2026 |
| Q3 2026 | Jul–Sep | Oct 31, 2026 |
| Q4 2026 | Oct–Dec | Jan 31, 2027 |
Payment
- Single EUR payment to your MSI
- Convert at ECB rate of last day of quarter
- MSI distributes to all 27 Member States
- Late payment: interest + penalties per MSI law
Marketplace Deemed Supplier Rule
If you sell via a marketplace/platform that facilitates the supply (payment, delivery, terms):
| Platform | Deemed Supplier? | Your Obligation |
|---|---|---|
| Apple App Store | YES | Apple collects/remits VAT. You invoice Apple (reverse charge). |
| Google Play Store | YES | Google collects/remits VAT. You invoice Google. |
| Steam | YES | Steam collects/remits VAT. You invoice Steam. |
| Udemy | YES | Udemy collects/remits VAT. You invoice Udemy. |
| Amazon Kindle/Audible | YES | Amazon collects/remits VAT. You invoice Amazon. |
| Your own website (Stripe/Paddle/LemonSqueezy) | NO | YOU are supplier. YOU need Non-Union OSS. |
| Paddle / LemonSqueezy (Merchant of Record) | YES (if MoR) | They collect/remit. You invoice them. |
Key: If platform = Merchant of Record (MoR) → they handle VAT. You invoice the platform (reverse charge, €0 VAT). If you're MoR → you need Non-Union OSS.
Enforcement & Penalties
How EU Catches Non-Compliant Non-EU Sellers
- Payment processor data sharing (Stripe, PayPal, Adyen report to EU)
- App store audits (Apple/Google report developers)
- Consumer complaints
- Bank transaction monitoring
- Mutual assistance between tax authorities (EU + non-EU treaties)
Penalties by MSI (Examples)
| MSI | Late Filing | Late Payment | Non-Registration |
|---|---|---|---|
| Ireland | €4,000 + €100/day | 0.0219%/day (8%/yr) | €5,000 + €100/day |
| Germany | 1%/month (min €25) | 1%/month + 0.5%/month | Up to €25,000 |
| France | 5% + 0.4%/month | 0.2%/month + 5% after 30d | €7,500 + 0.5%/month |
| Netherlands | €50-5,000 per return | 3% + statutory interest | €5,000 + €100/day |
Real Risk
Case: US SaaS, $2M ARR, 40% EU, No OSS
EU revenue exposure: roughly $840,000 of EU-facing sales, none of it collected.
A US SaaS company serves EU consumers directly. Forty per cent of its recurring revenue comes from EU customers, and it has never registered for VAT, because it has no EU establishment and assumed no establishment meant no obligation.
What went wrong: for supplies of digital services to consumers, place of supply follows the customer, not the supplier. Not being established in the EU is the reason Non-Union OSS exists - it is the trigger for the obligation, not an exemption from it.
What it would have cost to fix early: registration, then VAT charged at the consumer rate from the first day. Non-EU sellers charge VAT to EU consumers and remit it; they do not add it on as a cost.
What it costs to fix late: the liability compounds across every period missed. Penalties for non-registration are set by each Member State and vary widely - the table above shows Ireland, Germany, France and the Netherlands as examples, not a complete list. Add interest on unpaid VAT for each period, and expect the platform data your business shares with payment processors and app stores to be used as evidence.
How it gets found: almost never by the customer. Typically by a competitor reporting the company, a consumer complaint, a payment-processor data-sharing report, or a mutual assistance request between tax authorities. By then there is little to argue about except the penalty.
What to Do If You Are Already Selling
If you are a non-EU business already supplying digital services to EU consumers without a Non-Union OSS registration, the position is fixable - the first step is to stop compounding it:
- Establish what you supply. Digital services broadly means telecommunications, broadcasting and electronically supplied services. If it falls outside that, this guide does not describe your case.
- Count where your customers are. Place of supply follows the consumer, so the relevant measure is EU consumer sales by destination country.
- Register for Non-Union OSS. One registration covers all 27 Member States instead of registering separately in each.
- Apply the correct rate going forward. Destination-country rates are on the VAT rates page; digital services are generally taxed at the standard rate.
- Deal with the past separately. Voluntary disclosure and correction procedures differ by country, and the window to use them is not open-ended. This is the point at which to involve an adviser - the exposure is historical and specific to your situation.
One caution. This guide describes the general framework. Whether a specific supply falls within Non-Union OSS, and what the correct treatment was for past periods, depends on facts that vary by business. Treat it as a framework for the question, not the answer to it.