Source: https://rivet.global/blog/eu-vat-oss-for-non-eu-sellers
Published: 2026-08-03 · Updated: 2026-08-03 · By William Sunjo M.

# EU VAT for non-EU companies selling digital services: the One Stop Shop explained

How a company outside the EU charges VAT on digital services sold to EU consumers: the non-Union OSS, rates, returns, location evidence, and IOSS for goods.

## Key takeaways

- A non-EU business selling digital services to EU consumers owes VAT at the rate of the customer's country, from the first sale.
- The non-Union One Stop Shop lets it register in one member state and file one quarterly return for all EU sales.
- The €10,000 EU-wide threshold only helps businesses established in the EU, not those outside it.
- Sales to VAT-registered businesses usually fall under the reverse charge, so the customer accounts for the VAT.
- Goods worth up to €150 shipped to EU consumers can use a separate scheme, the Import One Stop Shop (IOSS).

A SaaS company in Toronto or a course creator's company in Singapore sells to individuals in Germany, France and Spain. It has no office or staff in Europe. It still owes EU VAT on those sales, at each customer's local rate, from the first euro. Many small companies find this out late. The One Stop Shop makes compliance manageable.

## When EU VAT applies to you

For **digital services** sold to **consumers** (B2C) in the EU, VAT is due where the customer is. Digital services include software subscriptions, apps, streaming, e-books, online courses delivered automatically and similar products.

| Seller | Customer | Who handles VAT |
|---|---|---|
| Non-EU company | EU consumer | You charge the customer's country's VAT |
| Non-EU company | EU VAT-registered business | Usually the customer, under the reverse charge |
| EU company | EU consumer, sales under €10,000 a year cross-border | Home country VAT can apply |

The €10,000 threshold is for EU-established businesses only. A company outside the EU has no threshold.

## The non-Union One Stop Shop

Without OSS you would register for VAT in every country where you have customers. With the non-Union OSS:

1. Register once, in any one EU member state.
2. Charge each customer the VAT rate of their country.
3. File one return each quarter, listing sales and VAT by country.
4. Pay the total in euros to the member state you registered in. It passes each country its share.

Returns are due by the end of the month after each quarter, even when you had no sales.

## Rates vary by country

Standard rates run from 17% in Luxembourg to 27% in Hungary, and some countries apply reduced rates to e-books or courses. Your checkout or billing tool needs each country's rate. Check the Commission's rates page for current numbers, because they change.

## Evidence of customer location

For each sale, keep two pieces of evidence that agree: billing address, IP address, card or bank country, or phone country code. Most billing platforms collect these for you.

## Selling goods: IOSS

For physical goods worth up to €150 shipped from outside the EU to EU consumers, the Import One Stop Shop lets you collect VAT at checkout and file monthly, so customers do not pay VAT and fees at the door.

## Paying the VAT

OSS payments are due in euros to the member state of registration, by bank transfer with the reference it gives you. A euro balance lets you pay without converting dollars every quarter. Rivet's Growth plan includes EUR account details and SEPA payouts beside your USD balance. See [Pricing](/pricing), and our [multi-currency account guide](/blog/multi-currency-business-account-guide) for how the balances work.

This article explains the rules in general terms. Check your situation with a VAT adviser.

## Questions

### Does a US company have to charge EU VAT?

Yes, if it sells digital services such as software, streaming or online courses to consumers in the EU. The VAT is due at the customer's country's rate, with no minimum threshold for businesses established outside the EU.

### What is the non-Union OSS?

A simplified scheme for businesses not established in the EU that supply services to EU consumers. You register in one member state of your choice, file one quarterly return listing sales by country, and pay all the VAT there in euros.

### Do I charge VAT to EU business customers?

Usually not. For B2B services the customer generally accounts for the VAT under the reverse charge. Collect and check the customer's VAT number, for example with the EU's VIES system, and keep the record.

### How do I prove where a customer is?

For digital services, the rules ask for evidence of the customer's location, such as billing address, IP address, or the country of the bank or card. Keep two pieces that agree for each sale.