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🔁 Reverse-Charge vs OSS Checker — EU Cross-Border VAT 2026
Answer 4 questions, get the correct 2026 treatment: reverse charge, OSS, or domestic VAT. Free, private, no sign-up.
🔒 100% Client-Side Privacy: Scenario checks execute entirely in local browser memory. No sale prices, customer locations, or business details are transmitted to outside servers or stored in databases.
OSS €10,000 Threshold Calculator — Do You Need to Register?
Enter your cross-border B2C turnover for this year and last year. The calculator applies Article 59c of the VAT Directive — including the ViDA clarification that takes effect on 1 January 2027, explained in full in our 2027 threshold guide.
The threshold test under Art. 59c combines supplies in the current plus preceding calendar year, EU-wide, excluding VAT. The threshold exists only for suppliers established in (or resident in) a single Member State. This calculator states the legal position under the Directive — it is not tax advice; confirm with your tax adviser before charging VAT at 0%.
How to Check Reverse Charge vs OSS for Your Sale
Before July 2021, sellers tracked individual national distance-selling thresholds (€35,000 or €100,000 per country) and registered locally everywhere. The One Stop Shop simplified this into destination-based taxation. Check your case first:
- Supplier country: where your business is established (EU state or outside EU).
- Customer country: where your buyer sits — the destination principle taxes consumption there.
- What you sell: services, physical goods, or digital products (different place-of-supply rules).
- Who buys: VAT-registered business (B2B) or private consumer (B2C) — this single choice usually decides the outcome.
- Read your verdict: reverse charge (€0 VAT, both IDs on the invoice), OSS destination VAT, or domestic VAT.
Understanding the €10,000 EU-Wide Distance-Sales Threshold
Updated for ViDA: Council Directive (EU) 2025/516 (VAT in the Digital Age) amends Article 59c with effect from 1 January 2027, and the Commission's July 2026 explanatory notes spell out two clarifications that matter for e-commerce sellers.
- Stock in another Member State is excluded from the threshold. Only distance sales dispatched or transported from the Member State where you are established count toward the €10,000. Sales from inventory held in another Member State never counted toward the threshold — they are simply taxed under the normal destination rules of the country where transport ends.
- Registering for the Union OSS waives the threshold. Registration is treated as exercising the option to apply destination-based VAT, so a registered business can no longer "fall back" on the threshold.
Worked example (from the official notes): a business established in France makes €8,000 of distance sales dispatched from France and €20,000 of distance sales from a German stock. Only the €8,000 counts toward the €10,000 threshold; the German-stock sales are taxable at German rates under the normal rules, whether or not the threshold is crossed.
Two further points unchanged by ViDA: the threshold is tested on the current plus preceding calendar year combined (excluding VAT), and it exists only if you are established in — or resident in — a single Member State. Once crossed, destination VAT applies for the rest of that year and the entire following year. Use the threshold calculator above to test your position under either set of rules.
For cross-border B2C goods and electronic services sold by an EU-established supplier, the EU allows a simplification below a set turnover figure. This is the EU-wide distance-sales threshold in place since 1 July 2021 — it is not the same thing as the separate micro-business relief some member states grant for domestic OSS filings.
- Under €10,000 in total cross-border B2C sales/year: you may continue to charge your home country’s domestic VAT rate across all 27 states. It is a permission, not an obligation, and member states differ in how they apply it.
- Over €10,000: destination-based VAT becomes mandatory at the buyer's local rate — via OSS or individual national registrations.
Union OSS vs. Non-Union OSS vs. Import OSS (IOSS)
Three schemes cover different merchant models:
| OSS Scheme | Target Merchant | Eligible Transactions | Filing Frequency |
|---|---|---|---|
| Union OSS | EU-established businesses (or non-EU with EU inventory) | B2C cross-border services + intra-EU distance goods | Quarterly return |
| Non-Union OSS | Businesses outside the EU, no EU branch | B2C telecom, broadcasting, electronic services (TBE) | Quarterly return |
| Import OSS (IOSS) | Global sellers shipping to EU buyers | Imported consignments up to €150 | Monthly return |
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.
Official sources: EU VAT Directive 2006/112/EC · EU Taxation & Customs
Destination VAT Rates Under Union OSS (2026 Reference)
OSS sales are declared at the consumption country's rate. Key destinations (full table in the VAT calculator):
| Destination | Code | Standard OSS Rate | Key Reduced Categories |
|---|---|---|---|
| Germany | DE | 19% | 7% (books, cultural goods) |
| France | FR | 20% | 5.5% / 10% (e-books, transport) |
| Italy | IT | 22% | 4% / 10% (education, supplies) |
| Spain | ES | 21% | 10% (pharma, events) |
| Netherlands | NL | 21% | 9% (e-publications, agriculture) |
| Poland | PL | 23% | 5% / 8% (books, digital media) |
| Sweden | SE | 25% | 6% / 12% (culture, transport) |
| Hungary | HU | 27% | 5% / 18% (education, essentials) |
Best Practices for OSS Record Keeping and Tax Returns
OSS sellers must survive cross-border audits with meticulous records:
- Keep 10-year records: Article 369 of the EU VAT Directive requires OSS transaction records for 10 years from year-end.
- Prove customer location: collect two non-contradictory evidence items (billing address, IP, bank country, mobile country code).
- Mind quarterly deadlines: file electronically by month-end following each quarter — Q1 due April 30, Q2 due July 31, Q3 due October 31, Q4 due January 31 — see the full EU VAT filing deadlines calendar.
Reverse charge wording: what to write on the invoice
When reverse charge applies, the invoice must carry a specific note. The exact wording differs by country. Use the correct legal reference for your customer’s country:
| Country | Legal reference | Invoice wording |
|---|---|---|
| EU general | Article 196, Directive 2006/112/EC | “VAT reverse charged — Article 196 of Council Directive 2006/112/EC” |
| Germany | §13b UStG | “Steuerschuldner ist der Leistungsempfänger — §13b UStG” |
| France | Art. 259-1 CGI | “TVA autoliquidation — Art. 259-1 du CGI” |
| Netherlands | Art. 7 Wet OB 1968 | “Btw verlegd — art. 7 Wet OB 1968” |
| Spain | Art. 84.Uno.2º LIVA | “Inversión del sujeto pasivo — Art. 84.Uno.2º LIVA” |
| Italy | Art. 17 DPR 633/72 | “Inversione contabile — Art. 17 DPR 633/72” |
| Poland | Art. 17 ust. 1 pkt 7 ustawy o VAT | “Odwrotne obciążenie — Art. 17 ust. 1 pkt 7” |
| Belgium | Art. 21bis KB W.BTW | “Btw verlegd / TVA transférée — Art. 21bis KB W.BTW” |
| Sweden | Ch. 3, §56 Mervärdesskattelagen | “Omvänt momspliktigt — 3 kap. 56 § MVL” |
| Austria | §6a UStG 1994 | “Steuerschuldner ist der Leistungsempfänger — §6a UStG 1994” |
| Ireland | VATCA 2010 s.46(1)(b) | “Reverse charge — VATCA 2010, Section 46(1)(b)” |
| United Kingdom | VATA 1994, s.43A | “Reverse charge: VAT to be accounted for by the recipient — VATA 1994 s.43A” |
| Portugal | Art. 66(3) CIVA | “Autoliquidação — Art. 66(3) CIVA” |
Always include both VAT numbers on the invoice: your VAT number and your customer’s VAT number. Some countries require additional phrases like “Reverse charge” in the local language alongside the legal reference. Check your customer’s national requirements before issuing.
When reverse charge does NOT apply
Reverse charge is not automatic. It fails when:
- No valid VAT number: Your customer cannot provide a VAT number that verifies in VIES. Check with the VAT number validator before invoicing at 0%.
- Same-country supply: If both parties are established in the same member state, domestic VAT rules apply. Reverse charge is for cross-border transactions only.
- Private consumer: B2C sales never qualify for reverse charge. You must charge VAT (your rate below €10,000 threshold, destination rate above it).
- Special schemes: Construction, property, events, margin schemes and digital services to consumers have their own rules. Reverse charge may apply differently or not at all.
- Fixed establishment: If you have a fixed establishment in the customer’s country, the supply may be domestic to that establishment, not cross-border.
What to check before invoicing at 0%
- Verify the VAT number: Use the VAT validator to check it against VIES. A valid format is not enough — the number must be active for intra-EU trade.
- Confirm both parties are in different EU countries: The supply must cross a border within the EU.
- Check the supply type: Goods (intra-Community supply, Art. 138) and services (Art. 44/196) have different conditions. Goods require proof of transport.
- Record the check: Keep the VIES consultation number, date and result. Tax authorities can require this as evidence during an audit.
- Report on your EC Sales List: Most EU countries require you to list reverse-charge transactions on a periodic return (EC Sales List or domestic equivalent).
Reverse charge vs OSS: a quick comparison
| Aspect | Reverse Charge (B2B) | OSS (B2C) |
|---|---|---|
| Who is the buyer? | VAT-registered business | Private individual / non-registered |
| VAT on invoice | 0% (reverse charged) | Destination country rate |
| VAT number needed? | Yes, verified in VIES | No |
| Registration required? | No (usually) | Yes (OSS in one member state) |
| Threshold | None | €10,000 pan-EU (EU sellers) |
| Reporting | EC Sales List | Quarterly OSS return |
Use the checker above to determine which applies to your transaction. For registration rules, see the OSS vs IOSS guide.
Frequently Asked Questions (FAQs)
What is the EU One Stop Shop (OSS) VAT scheme?
The One Stop Shop (OSS) is an electronic portal that allows businesses selling digital services or cross-border B2C goods to register for VAT in a single member state while applying the destination consumer's national VAT rate.
What is the €10,000 cross-border B2C threshold?
For cross-border B2C goods and electronic services there has been a single EU-wide threshold of €10,000 since 1 July 2021, counted cumulatively across all destination countries. Below it, an EU-established supplier may continue to charge VAT in the member state where it is established, as a simplification — a permission, not an obligation, and member states differ in how they apply it. Above it, destination-country rates apply and the One Stop Shop is the efficient route, or you register in each country separately. This threshold is separate from any domestic micro-business relief a member state may grant for its own OSS filings.
What is the difference between Union OSS and Non-Union OSS?
Union OSS is for businesses established within the EU selling goods or services to EU consumers. Non-Union OSS is for businesses established outside the EU selling digital services to EU consumers.
Do I need to issue full tax invoices for B2C sales under OSS?
Businesses using OSS for cross-border B2C sales are generally exempt from mandatory EU invoicing rules. However, sellers must still maintain a complete digital audit ledger with sale date, destination country, applied rate, and tax collected.
In which currency must I pay my quarterly OSS tax return?
All OSS returns and payments must be submitted in euros (EUR). Foreign-currency sales convert at ECB official rates on the quarter's final day — see the currency converter.
Does OSS apply to Business-to-Business (B2B) sales?
No. OSS applies strictly to Business-to-Consumer (B2C) sales. B2B cross-border transactions between VAT-registered entities use zero-rating and the reverse charge mechanism.
Can I reclaim input VAT expenses through my quarterly OSS return?
No. The OSS return declares and pays output VAT collected from EU consumers only. Input VAT in other EU countries must be claimed separately through the EU VAT Refund portal or national VAT returns.
Guidance only — not tax advice. Confirm OSS registration and rates with your tax authority.
Mastering EU One-Stop-Shop (OSS) and B2B Reverse-Charge Rules
Navigating cross-border European digital sales requires strict adherence to OSS thresholds and B2B reverse-charge mechanisms.
B2B vs B2C Rules
- B2B Services: Generally taxed in the customer's jurisdiction via the reverse-charge mechanism (0% on supplier invoice).
- B2C Digital Sales: Subject to destination-based VAT reporting via the OSS portal once cross-border sales exceed €10,000.