Which VAT rate for OSS: the consumption-country rule
For a B2C sale declared under the One Stop Shop, use the VAT rate of the customer’s member state (the member state of consumption), not your own: that applies to intra-EU distance sales of goods and to the services taxed where the customer is, digital services among them, since 1 July 2021 (European Commission, OSS guide). A seller established in one member state whose such sales stay under €10,000 a year in total may keep its own rate (Council Directive 2006/112/EC as amended in 2017). The three questions below pick the rate per sale; the last section lists the rows that make returns wrong.
- Rule: B2C distance sales of goods within the EU and B2C telecommunications, broadcasting and electronic services are taxed where the customer is (member state of consumption), since 1 July 2021 for goods and since 2015 for electronic services.
- Threshold: a seller established in a single member state whose cross-border B2C sales of these kinds stay under €10,000 a year EU-wide may charge its own country’s VAT instead; above it, from the sale that crosses it, the customer’s rate applies.
- The rate is the customer country’s rate for that product: the standard rate for most digital services, a reduced rate where that country applies one (e-books in many member states, for example).
- The OSS return then lists, per member state of consumption and per rate, the taxable amount and the VAT; one quarterly return replaces registrations in each country.
How do you pick the rate for each sale?
- Is the customer a business with a valid VAT number? Then it is not an OSS sale: B2B services are reverse-charged and intra-EU B2B goods are zero-rated with the customer’s number checked (VIES). Validate the number; keep the consultation number.
- Is the customer in another member state, and are you above €10,000 (or did you opt in)? Then the member state of consumption is the customer’s: where the goods arrive, or for electronic services where the customer is established or usually resides (the evidence rules let you rely on two non-contradictory pieces, such as billing address and card country).
- Which rate does that country apply to this product? The standard rate unless that country grants a reduced rate for the product. Read the country’s row, not your own country’s list: e-books, newspapers, food and accommodation are where member states differ most.
What is the digital-services rate in each member state?
Electronically supplied services (SaaS, downloads, streaming) per member state, from the rates table (verified 2026-10-24). The hint is a hint: the classification of your supply is yours.
| Member state | Rate for digital services | Standard rate |
|---|---|---|
| Austria (AT) | 20 % | 20 % |
| Belgium (BE) | 21 % | 21 % |
| Bulgaria (BG) | 20 % | 20 % |
| Croatia (HR) | 25 % | 25 % |
| Cyprus (CY) | 19 % | 19 % |
| Czechia (CZ) | 21 % | 21 % |
| Denmark (DK) | 25 % | 25 % |
| Estonia (EE) | 24 % | 24 % |
| Finland (FI) | 25.5 % | 25.5 % |
| France (FR) | 20 % | 20 % |
| Germany (DE) | 19 % | 19 % |
| Greece (EL) | 24 % | 24 % |
| Hungary (HU) | 27 % | 27 % |
| Ireland (IE) | 23 % | 23 % |
| Italy (IT) | 22 % | 22 % |
| Latvia (LV) | 21 % | 21 % |
| Lithuania (LT) | 21 % | 21 % |
| Luxembourg (LU) | 17 % | 17 % |
| Malta (MT) | 18 % | 18 % |
| Netherlands (NL) | 21 % | 21 % |
| Poland (PL) | 23 % | 23 % |
| Portugal (PT) | 23 % | 23 % |
| Romania (RO) | 21 % | 21 % |
| Slovakia (SK) | 23 % | 23 % |
| Slovenia (SI) | 22 % | 22 % |
| Spain (ES) | 21 % | 21 % |
| Sweden (SE) | 25 % | 25 % |
Which rows make a return wrong?
- Your own country’s rate on a foreign sale (above the threshold): the most common error; the return then shows a rate the member state does not apply.
- A rate from the wrong period: a member state changed its rate during the quarter and the shop kept the old one. Rows must carry the rate in force on the supply date.
- Credit notes of an earlier quarter netted into this one: they belong in the corrections section of the current return, per member state and period.
- Currency: the return is in euro; convert at the ECB rate of the last day of the period.
- Exempt or zero-rated lines and B2B lines in the export: they are not declared through OSS.
The OSS return endpoint refuses each of these with the row number and the rule, and builds the lines when the rows pass.
Questions
- Do I apply the customer’s rate below €10,000?
- Not necessarily: a seller established in one member state with cross-border B2C sales under €10,000 a year may apply its own country’s VAT, or opt for the destination rule (and OSS) anyway. Above the threshold, the customer’s rate is mandatory from the sale that crosses it.
- I am outside the EU. Does this apply?
- For B2C electronic services to EU customers, yes, from the first euro: you register in the non-Union OSS scheme in one member state and apply each customer country’s rate. For goods, the Union scheme or IOSS applies depending on where the goods are shipped from and their value.
- Is this tax advice?
- No. It summarises the Commission’s published rules with their sources; your situation (establishment, product classification, evidence of location) is yours or your adviser’s to decide.
One file per quarter from your sales export.
Build your OSS returnSources
- VAT e-commerce rules: One Stop Shop (OSS) and Import One Stop Shop (IOSS) — European Commission, DG TAXUD, consulted 2026-10-24
- One Stop Shop — guide to the VAT OSS: declare and pay, quarterly periods, corrections in a later return — European Commission, DG TAXUD, consulted 2026-10-24
- Commission Implementing Regulation (EU) 2020/194 — the OSS/IOSS VAT return: content per member state of consumption, rate type, rate, taxable amount, VAT amount, corrections (Annex III) — European Commission (EUR-Lex), consulted 2026-10-24
- Council Directive 2006/112/EC on the common system of value added tax, Articles 96–105 and Annex III (reduced rates), as amended by Directive (EU) 2022/542 — EUR-Lex, consulted 2026-10-24
- VAT rates applied in the Member States of the European Union (situation at 1 January 2025) and the Taxes in Europe Database (TEDB) — European Commission, DG TAXUD, consulted 2026-10-24. Rates changed after the January 2025 edition (EE July 2025, RO August 2025) are taken from the national pages cited on the row and must be re-read monthly.