OSS and IOSS: EU VAT for online sellers

Updated: July 2026

Sell to consumers in other EU countries and, past a small threshold, you owe VAT at their country's rate, not Ireland's. Before 2021 that meant registering in country after country. The One-Stop Shop replaced that with a single quarterly return filed through ROS. If you are still checking what Irish VAT does to your margins first, start with the VAT calculator, then come back to the cross-border layer.

The €10,000 threshold

While your total cross-border B2C sales of goods and digital services to all other EU countries stay under €10,000 a year, you may simply charge Irish VAT as if the customer were in Ireland. One euro over, and the customer's local rate applies: a German customer pays 19%, a Danish one 25%. The threshold is EU-wide and cumulative, not per country, and it is low. A modest web shop crosses it without noticing.

OSS: one return instead of many

Registering for the Union OSS through ROS lets you charge each customer's local rate at checkout and remit everything on one quarterly OSS return, which Revenue distributes to the other member states. You still file your normal Irish VAT3 for domestic sales; OSS handles only the cross-border B2C layer. The practical work is in your checkout software, which has to hold a rate table for every member state and apply it by delivery country.

IOSS: imports under €150

The Import One-Stop Shop covers goods shipped to EU consumers from outside the EU in consignments up to €150. Registered sellers charge the destination VAT at checkout and the parcel clears customs without the customer being hit for VAT and a courier admin fee on the doorstep. For Irish sellers dropshipping from outside the EU, IOSS is usually the difference between a delivered price customers accept and a surprise charge that triggers refusals and refunds.

Where sellers go wrong

Treating the €10,000 threshold as per-country rather than EU-wide.
Charging Irish VAT to all EU customers long after crossing it.
Forgetting that OSS returns are quarterly with their own deadline, separate from the VAT3 cycle.
Mixing B2B sales into OSS: sales to VAT-registered EU businesses stay under the normal intra-EU rules, zero-rated with a VIES check.

Need the numbers now? Our VAT calculator for Ireland adds or removes VAT at 23%, 13.5%, 9%, 4.8% and 0%, totals invoice lines and works back from a VAT amount.
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Common questions

What is the 10,000 euro threshold for EU sales?

Once your combined cross-border sales of goods and digital services to consumers in all other EU countries exceed 10,000 euro in a year, you must charge each customer's local VAT rate rather than Irish VAT. The threshold is EU-wide, not per country.

Do I still file an Irish VAT3 if I use the OSS?

Yes. The OSS return covers only cross-border B2C sales to other EU countries. Your Irish sales, purchases and reclaims stay on the normal VAT3 return through ROS.

What does IOSS cover?

The Import One-Stop Shop covers goods sold to EU consumers and shipped from outside the EU in consignments worth up to 150 euro. The seller charges destination VAT at checkout and the parcel is not stopped for VAT collection on delivery.