EU Distance Selling Thresholds 2026: €10,000 Rule, OSS Registration & Compliance
Since July 2021, a single €10,000 pan-EU threshold replaces the old per-country limits. This guide explains how it works, how to monitor your turnover, when to register for Union OSS, which VAT rates apply, and real compliance examples for e-commerce sellers. Updated September 2026.
Quick Answer: The €10,000 Rule in 60 Seconds
📦 What Counts
B2C sales of physical goods shipped from one EU country to consumers in other EU countries. Includes: Shopify, WooCommerce, Amazon FBA (you as seller), Etsy, own warehouse.
💰 The Threshold
€10,000 per calendar year — cumulative across ALL EU destinations. Not per country. €4k Germany + €4k France + €3k Italy = €11k = threshold exceeded.
⬇️ Below Threshold
Charge your domestic VAT rate on all cross-border B2C sales. File only domestic VAT return. No OSS needed.
⬆️ Above Threshold
Charge destination country VAT rate for each sale. Register for Union OSS. File quarterly OSS return. One payment covers all EU.
🖥️ Digital Services
No threshold. Always taxed at consumer's location. Union OSS required from first euro (if EU-established).
📦 Goods > €150 Import
Not distance selling — standard import VAT + customs. IOSS only for ≤ €150.
How the €10,000 Threshold Works
Calendar Year Basis
The threshold is measured per calendar year (Jan 1 – Dec 31), not rolling 12 months.
Example: Crossing Mid-Year
Polish seller, 2026 cross-border B2C goods sales:
- Jan–May: €7,000 total (DE €3k, FR €2k, IT €2k)
- June: €4,000 sale to Spain → cumulative €11,000
- Threshold exceeded in June.
- Action: Register for Union OSS prospectively. From July 1: charge destination VAT (ES 21%). Prior sales (Jan–Jun): already filed in Polish VAT return at Polish 23%. No amendment needed.
What's Included in the €10,000
| Included | Excluded |
|---|---|
| B2C goods shipped cross-border within EU | B2B sales (reverse charge — not distance selling) |
| Goods shipped from your EU warehouse | Digital services (separate: no threshold, always OSS) |
| Goods shipped from supplier (dropshipping) if you're the seller | Domestic sales (same country) |
| Marketplace sales where YOU are deemed supplier | Marketplace sales where MARKETPLACE is deemed supplier (they handle OSS) |
| Returns/refunds: NET amount (reduce turnover) | Shipping charges (if separately stated — check national rules) |
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.
Marketplace Deemed Supplier Rule
If you sell via Amazon, eBay, Etsy, Zalando and they facilitate the sale (payment, delivery, returns): THEY are the deemed supplier. They charge VAT, file OSS. You don't count these sales in your €10,000.
But: If you sell via your own website (Shopify, WooCommerce, custom): YOU are the supplier. You count these sales. You need OSS if > €10k.
Monitoring Your Turnover: Practical Systems
Monthly Tracking Template
Set up a simple spreadsheet (or automate via API):
| Month | DE | FR | IT | ES | NL | BE | AT | Others | Cumulative | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan | €1,200 | €800 | €500 | €0 | €300 | €0 | €0 | €0 | €2,800 | Below |
| Feb | €1,500 | €1,000 | €600 | €400 | €500 | €200 | €0 | €0 | €7,000 | Below |
| Mar | €1,800 | €1,200 | €800 | €600 | €700 | €300 | €200 | €100 | €12,700 | EXCEEDED |
Automation Options
Shopify
Shopify Tax / EU Tax app auto-calculates. Reports: Analytics → Sales by country. Or use Taxually / Quaderno.
WooCommerce
WooCommerce EU VAT Compliance or TaxJar plugin.
Amazon FBA
Amazon VAT Calculation Service (VCS) handles OSS for Pan-EU FBA. Download "VAT Transaction Report" monthly.
Custom/API
Our VAT Calculator API can validate rates. For full automation: Avalara, Taxamo, Vertex.
Early Warning System
Set alerts at €7,000 (70%) and €9,000 (90%):
- At €7k: Start OSS registration prep (takes 1-2 weeks)
- At €9k: Submit OSS registration
- At €10,001: You're live on OSS
Union OSS Registration: Step-by-Step
When to Register
- Prospectively: When you anticipate exceeding €10k in current quarter
- Mandatory: From the quarter you actually exceed €10k
- Never retroactively: OSS starts from registration date forward
Registration by Country
| Country | Portal | Timeline | Language |
|---|---|---|---|
| Germany | BZSt OSS Portal (bzst.de) | Instant | DE/EN |
| France | impots.gouv.fr → Espace Pro → OSS | Instant | FR/EN |
| Italy | Agenzia Entrate → Fatture e Corrispettivi | 1-2 days | IT/EN |
| Spain | AEAT → Modelo 036/037 + OSS | Instant | ES/EN |
| Poland | PUESC / KAS | 1-3 days | PL/EN |
| Netherlands | Mijn Belastingdienst → OSS | Instant | NL/EN |
| Belgium | MyMinfin → OSS | Instant | FR/NL/EN |
| Ireland | ROS (Revenue.ie) → OSS | Instant | EN |
Information Required
- Existing VAT number (domestic)
- Business name, address, contact details
- Expected EU destination countries
- Estimated quarterly turnover per country
- Bank account for refunds (SEPA IBAN)
- Contact person for tax authority
After Registration
- Receive OSS confirmation (immediate to few days)
- Your domestic VAT ID gets OSS endorsement
- Start charging destination VAT from registration date
- First OSS return: quarter following registration
Destination VAT Rates 2026 (Top 15 EU Markets)
When OSS applies, you charge the consumer's country rate. Here are the standard rates for the largest e-commerce markets:
| Country | Code | Standard | Reduced (Common) | E-com Population (M) |
|---|---|---|---|---|
| Germany | DE | 19% | 7% (books, food, medical) | 83 |
| France | FR | 20% | 5.5% (food, books), 10% (restaurants) | 68 |
| Italy | IT | 22% | 10% (food, pharma), 4% (books) | 59 |
| Spain | ES | 21% | 10% (food, transport), 4% (books) | 47 |
| Poland | PL | 23% | 8% (food, transport, medicine) | 38 |
| Netherlands | NL | 21% | 9% | 18 |
| Romania | RO | 21% | 11% | 19 |
| Belgium | BE | 21% | 6%, 12% | 12 |
| Austria | AT | 20% | 10%, 13% | 9 |
| Sweden | SE | 25% | 6%, 12% | 11 |
| Czech Republic | CZ | 21% | 12% | 11 |
| Portugal | PT | 23% | 6%, 13% | 10 |
| Greece | GR | 24% | 6%, 13% | 10 |
| Denmark | DK | 25% | - | 6 |
| Finland | FI | 25.5% | 10%, 13.5% | 6 |
Population figures are approximate and used only to rank markets by size. They are not a threshold input - your obligation turns on turnover value, not on how many people live in a country. Hungary (27%) and Ireland (23%) sit outside the fifteen largest markets but are notable rates; check the full rate table before quoting one.
Worked Example: Where the €10,000 Line Sits
A UK business sells €7,500 of goods online to consumers in Germany and France in one quarter, and nothing to consumers elsewhere in the EU.
- The €10,000 threshold is measured across all intra-EU distance sales, not per country. It is not reset each quarter or year - it runs over a rolling 12-month period.
- €7,500 is below the threshold, so the business may continue to charge UK VAT on those sales rather than German and French VAT.
- Another €2,500 of sales to an Italian consumer takes the total to €10,000 and the threshold is breached. From that point the business must register for Union OSS and charge the destination rate on all intra-EU distance sales.
- Sales to VAT-registered businesses sit outside this calculation entirely - they follow the reverse charge instead.
The threshold is a limit, not a target. Staying below €10,000 is a reasonable commercial choice, but the figure itself is a legal limit: exceeding it by a small amount changes the VAT treatment of your entire cross-border B2C supply, and the rule comes from EU law rather than from a national choice.
What Does Not Count Towards the Threshold
- Domestic sales. Sales to customers in your own country are outside OSS entirely and never touch this threshold.
- B2B sales. Supplies to VAT-registered businesses follow the reverse charge or destination taxation under other rules - not the distance-sales threshold.
- Supplies outside the EU. The threshold counts intra-EU distance sales only.
- Non-EU customers. A customer outside the EU is not part of the calculation; that is a separate place-of-supply question.
Where the threshold does not apply at all: imports of goods from outside the EU use IOSS up to €150 per consignment, which is a different scheme with a different ceiling. See OSS vs IOSS compared.