The Future of the One Stop Shop and Import One Stop Shop

Russell Hughes
August 17, 2022

It’s been just over 13 months since the introduction of the EU’s E-Commerce VAT Package in the guise of the One Stop Shop (OSS) and of the Import One Stop Shop (IOSS). After what has widely been hailed as a success by the European Commission (EC), what, if any, changes can we expect going forward?

The EC has recently issued the final report of its consultation on ‘VAT In the Digital Age’. Within this they discuss various potential changes for the use of OSS, in what they call the ‘Single Place of VAT Registration’ in the EU, and IOSS.

Potential changes to the One Stop Shop (OSS)

Option one

The first option would be to continue with the current VAT system introduced on 1 July 2021 with some minor amendments and potentially additional guidance or quick fixes to improve the implementation and use of OSS.

Option two

The second option would be to extend OSS to also include the domestic B2C supplies of goods, including a small change to the scope of OSS to cover this.

Option three

The third option would be to extend this even further by not only including domestic B2C supplies of goods but also extending to B2B supplies by non-established businesses. Due to the complexity of this option, the EC have broken this down into three possible sub-options:

  1. Extending the use of OSS to intra-EU supplies and intra-EU acquisitions of goods, in situations where these relate to the first leg of the B2B2C transactions that are increasingly important in e-commerce, particularly for supplies facilitated by electronic platforms.
  2. Combining with option one above to increase coverage of OSS to all B2B supplies of goods and services, while leaving the current VAT refund mechanisms (via the EU VAT refund system and 13th VAT Directive (86/560/EEC)) in place.
  3. Having the same coverage as option two above, while also introducing a deduction mechanism into OSS, thereby allowing businesses to use it to claim back the deductible input VAT incurred in a Member State where they’re not established.

Option four

Finally, the fourth option for OSS changes would be an extension of OSS as in option two above plus the introduction of a mandatory reverse charge for B2B supplies by non-established persons. This would replace the current extended-reverse charge rules under article 194 of the European VAT Directive and would require harmonising the implementation of these rules in all EU Member States.

Potential changes to the Import One Stop Shop (IOSS)

Option one

In terms of the options for changes to IOSS, the first option would be the same as the proposed OSS option, that is to continue as is with possible minor amendments if required.

Option two

The second option discussed is the removal of the current €150 threshold as well as the custom duties threshold. This could be beneficial for suppliers operating systems for orders below and above €150.

Option three

The third option is making IOSS mandatory, which could be for either:

  1. All deemed suppliers; or
  2. Taxable persons distance selling into the EU over a certain threshold (an amount of €10 000 was provided); or
  3. All taxable persons making eligible distance sales of goods into the EU.

This option could be implemented on its own or in combination with IOSS option two above and possible OSS options.

Whichever way the EC decides to extend OSS and IOSS, a thorough review of all options will be needed as a simplification could result in a more complex system. At this stage it may be easier to introduce some of the simpler options, such as including domestic transactions for OSS and extending the threshold for IOSS and making this mandatory.

Take Action

Sign up for our tax alerts to be the first to hear about OSS and IOSS developments.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Russell Hughes

At Sovos, Russell works within the Consulting team providing UK and cross-border supply advice, detailed reviews on existing and new business activities and practical solutions to clients’ businesses. Prior to joining Sovos, Russell was the VAT manager of an award-winning tax team based in a firm of Chartered Accountants in the South East of England. Having initially begun his career in audit and accounts, he specialized in VAT in 2011, where he gained significant experience in cross-border issues, imports and exports, land and property, group registrations, partial exemption, HMRC enquiries and other complex VAT transactions. From June 2015, Russell was the sole VAT specialist in his previous company, where he led the firm’s VAT compliance and consultancy projects including all day-to-day VAT queries. Russell is also a member of the VAT Practitioners Group (VPG).
Share This Post

North America Tax Information Reporting
June 7, 2023
4 Ways to Elevate Your Direct State Reporting Process

Direct state reporting obligations have gotten increasingly difficult for some businesses over the past few years. With more states requiring direct reporting of form series 1099, more companies are subject to penalties if they do not comply with those obligations. As state reporting evolves, ensuring your process is efficient is critical. Strengthening your reporting process […]

EMEA VAT & Fiscal Reporting
June 7, 2023
The Value of SAP S/4HANA Add-On Software Certification

Many companies utilise SAP for their tax processes, but limitations in native software functionality add a layer of complexity. Custom coding is often required for businesses to achieve their desired results, producing the need for ongoing customisation and optimisation – this creates a hefty burden for companies, in addition to their tax compliance obligations. SAP-certified […]

North America Sales & Use Tax
June 5, 2023
Sovos Onboarding: 6 Departments Dedicated to Customer Success

If you are evaluating Sovos, we want you to understand expectations for the customer experience and what teams are there to support you. At Sovos, we have a range of teams ready to support you from the day you sign a contract. Whether it be a customer success representative to review the value you are […]

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

EMEA VAT & Fiscal Reporting
May 31, 2023
Bizkaia: What is Batuz LROE?

The Ledger of Economic Operations (Libro Registro de Operaciones Económicas), also known as LROE, is a main compliance element of the Batuz tax control system. This system is under implementation in the province of Bizkaia, located in the autonomous Basque community in Spain. Taxpayers under the Batuz mandate must comply with both TicketBAI and LROE […]