Introduction to VAT OSS and VAT IOSS in Ireland: A Guide for E-Commerce Sellers

If you sell products or services online to consumers across the EU, you have a VAT problem. Every EU country has its own VAT rates, its own registration requirements, and its own filing obligations. Without a simplification scheme, an Irish online retailer selling to customers in 10 EU countries would need 10 separate VAT registrations, 10 sets of returns, and 10 payment processes.

That’s the problem the VAT One Stop Shop (OSS) and Import One Stop Shop (IOSS) were designed to solve. These schemes let you declare and pay VAT on all your EU B2C sales through a single registration in Ireland, using a single return. This guide explains how OSS and IOSS work, who needs to register, and what’s involved in staying compliant.

How does VAT work for e-commerce sales?

When you sell goods or services to consumers (B2C) in other EU countries, the fundamental rule is the destination principle: VAT is charged at the rate applicable in the country where the customer is located, not where your business is based.

This means an Irish business selling a product to a consumer in Germany must charge VAT at Germany’s rate (19%), not Ireland’s (23%). A sale to a French consumer requires the French rate (20%). Each country’s rate applies to your sales into that country.

For B2B sales (business to business), the reverse charge mechanism usually applies, so OSS and IOSS are primarily relevant for B2C transactions.

The €10,000 EU-wide threshold

There is one important exception. If your total cross-border B2C sales of goods and eligible services to other EU countries are below €10,000 per year (excluding VAT), and you’re established in only one EU Member State, you can apply your Irish VAT rate to all EU sales. You don’t need OSS in this case.

The threshold covers the current and preceding calendar year. The moment you exceed it, the destination principle kicks in immediately, and you must either register for OSS or register for VAT individually in each customer country. For most growing e-commerce businesses, the €10,000 threshold is crossed quickly.

What is the VAT One Stop Shop (OSS)?

The VAT One Stop Shop is an EU-wide scheme that lets you declare and pay VAT on eligible cross-border B2C supplies through a single registration in your home Member State. For Irish businesses, that means registering and filing through Revenue’s online services (ROS).

There are two OSS schemes:

Union OSS (for EU-established businesses)

This is the main scheme for Irish businesses. It covers:

• Intra-Community distance sales of goods: Goods sold online and shipped from Ireland (or another EU country where you hold stock) to consumers in other EU Member States
• Cross-border B2C services: Services supplied to consumers where the place of supply is the customer’s EU country (including digital services, telecoms, broadcasting, and other eligible services)

Once registered, you file a single quarterly OSS return covering all your eligible cross-border B2C sales across all EU countries. Revenue collects the VAT and distributes it to each Member State on your behalf.

Non-Union OSS (for non-EU businesses)

If your business is not established anywhere in the EU but supplies B2C services to EU consumers, you can register for the Non-Union OSS scheme. This covers all B2C service supplies (not goods). Filing is also quarterly, with the same deadlines as the Union scheme.

How to register for VAT OSS in Ireland

Irish-established businesses register for the Union OSS through the VAT OSS section in ROS (Revenue Online Service). You don’t need a separate VAT number; your existing Irish VAT registration is used.

To register, you’ll need:

• Your Irish VAT number
• Business contact details
• Bank account information for payments
• Details of your online sales channels (website, marketplaces)
• An understanding of which EU countries you sell into and at what volumes

Registration should be completed before you begin making taxable OSS supplies (or immediately after exceeding the €10,000 threshold). The registration is effective from the first day of the calendar quarter following your application, or from an earlier date if you notify Revenue of an earlier supply.

How do OSS returns work?

OSS returns are filed quarterly, with the return and payment due by the end of the month following each quarter:

• Q1 (January to March): due 30 April
• Q2 (April to June): due 31 July
• Q3 (July to September): due 31 October
• Q4 (October to December): due 31 January

Each return must include:

• Taxable amount of supplies per Member State of consumption
• VAT rate applied (standard and/or reduced, as applicable in each country)
• VAT amount due per Member State
• Breakdown between goods and services
• Corrections to prior periods (if any)

You must charge VAT at the rate applicable in the customer’s country, not Ireland’s rate. VAT rates vary significantly across the EU (from 17% in Luxembourg to 27% in Hungary for standard rates). The EU Taxes in Europe Database publishes current rates by Member State.

Payment is due at the same time as the return. Revenue collects the total amount and distributes each Member State’s portion.

Important: OSS returns are separate from your regular Irish VAT return. Domestic Irish sales and B2B supplies continue to be reported on your standard VAT3 return.

What is the Import One Stop Shop (IOSS)?

The Import One Stop Shop (IOSS) is a separate scheme designed for businesses selling goods imported from outside the EU directly to EU consumers, where the consignment value is €150 or less.

Without IOSS, the consumer would pay import VAT when the package arrives, creating delays and a poor customer experience. With IOSS, the seller charges VAT at the point of sale (at the customer’s country’s rate), and the goods clear customs without additional VAT charges.

Who can use IOSS?

• EU-established businesses: Register directly in their Member State of identification (Ireland for Irish businesses, via ROS)
• Non-EU businesses: Must appoint an EU-established intermediary who registers on their behalf and is jointly liable for VAT compliance. The intermediary receives a special identification number (format INxxxyyyyyyz)
• Electronic interfaces (marketplaces): When a marketplace facilitates the sale of imported goods up to €150, it becomes the deemed supplier and must use IOSS to declare and pay the VAT

What’s covered?

IOSS covers distance sales of goods imported from outside the EU in consignments with an intrinsic value not exceeding €150, sold B2C to consumers in any EU Member State. The goods must not be subject to excise duties.

How do IOSS returns work?

IOSS returns are filed monthly (not quarterly like OSS). The return and payment are due by the end of the month following the tax period. For example, January sales are reported and paid by the end of February.

Each IOSS return must include:

• Total VAT-exclusive value of supplies per Member State of consumption
• VAT amount due per Member State
• Total import VAT due across all EU Member States

As with OSS, the VAT rate of the customer’s country applies. Revenue collects the payment and distributes it.

OSS vs IOSS: key differences at a glance

Marketplace deemed supplier rules

If you sell through a marketplace (Amazon, eBay, Etsy, or similar electronic interfaces), the marketplace may be treated as the deemed supplier for VAT purposes. This means the marketplace, not you, is responsible for collecting, declaring, and paying the VAT.

This applies in two situations:

• Imported goods ≤ €150: The marketplace uses IOSS to handle the import VAT on sales it facilitates
• Goods already in the EU sold by a non-EU seller: The marketplace is the deemed supplier regardless of the consignment value

If the marketplace handles the VAT, your sale to the marketplace is treated as a zero-rated B2B supply. Check with each marketplace to confirm whether they’re acting as the deemed supplier for your sales.

Important 2026 change: customs duty on low-value imports

From 1 July 2026, the previous customs duty exemption for imports under €150 is being replaced by a flat-rate €3 customs duty per parcel. This is separate from VAT (which IOSS continues to handle), but businesses using IOSS should factor this additional cost into their pricing and logistics planning.

Practical tips for VAT OSS and IOSS compliance

• Configure your checkout correctly. Your e-commerce platform must determine the customer’s location and apply the correct VAT rate for that country. Most major platforms (Shopify, WooCommerce) have built-in EU VAT rate features.
• Collect customer location evidence. You need at least two non-contradictory pieces of evidence (billing address, delivery address, IP address, bank location) to confirm the customer’s Member State.
• Keep detailed records. Revenue requires you to retain records of all OSS/IOSS transactions for 10 years. Records must be detailed enough for any Member State’s tax authority to verify the return.
• Map your products to correct VAT rates. Not all products are subject to the standard rate. Some EU countries apply reduced rates to specific categories (food, books, children’s clothing). Get this mapping right from the start.
• Separate OSS from your domestic VAT return. OSS transactions are reported on the OSS return only. Your Irish VAT3 covers domestic and B2B supplies.

Frequently asked questions

Do I need to register for OSS if I only sell within Ireland?

No. OSS is only relevant for cross-border B2C sales to consumers in other EU countries. If all your sales are to Irish customers, your standard Irish VAT registration is sufficient.

Can I use OSS for B2B sales?

No. OSS is for B2C (business-to-consumer) transactions only. B2B sales within the EU are typically handled through the reverse charge mechanism.

What happens if I don’t register for OSS and exceed the €10,000 threshold?

You must either register for OSS or register for VAT individually in each EU country where you have customers. Failing to charge the correct VAT rate, or failing to register at all, creates a liability in each customer’s country and potential penalties.

Is the €150 IOSS threshold per item or per consignment?

Per consignment (package). If a single shipment to one customer contains goods worth more than €150 in total, IOSS cannot be used for that shipment. Normal import VAT procedures apply instead.

Can my accountant handle OSS and IOSS filing?

Yes. Many accountants with VAT compliance expertise handle OSS and IOSS registration and filing on behalf of their clients. Given the complexity of applying multiple VAT rates across multiple countries, professional support is strongly recommended.

Need help with VAT OSS or IOSS?

Getting EU e-commerce VAT right from the start saves significant time and money compared to fixing errors across multiple Member States. At Kinore, we help Irish e-commerce businesses register for OSS and IOSS, configure their VAT compliance, file returns on time, and manage the complexity of multi-country VAT obligations.

Book a consultation and let’s make sure your e-commerce VAT is handled correctly.

The information provided in this article is for general guidance and informational purposes only. It does not constitute professional accounting, tax, or financial advice, and should not be relied upon as a substitute for advice tailored to your specific circumstances. While we take care to ensure the content is accurate and up to date at the time of publication, legislation, tax rates, thresholds, and compliance requirements in Ireland can change.