Key takeaways
- Once combined intra-EU distance sales and electronic services exceed 10,000 euros a year, you must charge VAT at the destination country's rate instead of Belgian VAT.
- The OSS scheme centralises the declaration and payment of that foreign VAT into a single quarterly return filed in Belgium, with no registration needed in each country.
- Registration for the one-stop-shop is done online via Intervat, before the quarter from which the scheme applies.
- The IOSS is a separate scheme, reserved for goods imported from non-EU countries in consignments of 150 euros or less.
A Belgian business selling online to private individuals in other EU countries cannot keep charging VAT OSS e-commerce Belgium at the Belgian rate indefinitely: past a certain volume, the VAT owed becomes that of the buyer's country. The OSS scheme (one-stop-shop) was created precisely to spare these sellers from registering for VAT in every country where they cross that threshold. This article explains when the threshold applies, how to register for the one-stop-shop from Belgium, and what sets the OSS apart from the IOSS for imported goods.
Why e-commerce VAT got its own scheme
Before 2021, every member state applied its own distance-selling threshold, forcing online sellers active in several countries to follow different rules depending on the destination. The EU e-commerce VAT reform replaced those national thresholds with a single harmonised threshold and extended the mini one-stop-shop (MOSS), previously reserved for electronic services, to cover all intra-EU distance sales of goods as well.
The 10,000 euro threshold: when do you switch to the destination country's VAT
The threshold is set at 10,000 euros per calendar year, and it adds up all intra-EU distance sales of goods plus telecommunications, broadcasting and electronic services supplied to private individuals in other member states. It is not a per-country threshold: all of the business's cross-border EU sales are combined to assess it.
harmonised annual EU threshold
combined B2C distance sales of goods + electronic services
IOSS cap
maximum intrinsic value of an eligible imported consignment
OSS returns a year
one per calendar quarter
Below the threshold, the Belgian business can keep charging Belgian VAT on its sales to private individuals in other member states. As soon as it crosses the threshold, it must charge VAT at the rate in force in the country where the goods are delivered or the service is consumed. It can then choose between the OSS scheme or direct VAT registration in every country concerned.
| OSS scheme | Local registration in every country | |
|---|---|---|
| Number of returns | 1 quarterly return filed in Belgium | 1 return per country, each on its own calendar |
| Local VAT number required | ||
| Administrative counterpart | SPF Finances (Intervat) | Each country's tax authority |
| Payment of foreign VAT | Centralised in a single payment | A separate payment per country |
Registering for the OSS one-stop-shop from Belgium
Registration for the OSS scheme (Union scheme) for a Belgian business is done online, via the Intervat portal run by the SPF Finances. It normally has to happen before the start of the calendar quarter from which the scheme is meant to apply to the sales made.
- 1
Check whether the threshold is crossed
OngoingAdd up intra-EU distance sales of goods and B2C electronic services to other EU member states over the current and the preceding calendar year.
- 2
Register on Intervat
Before the relevant quarterApply for the Union scheme (OSS) with the SPF Finances, normally before the quarter of application.
- 3
Charge VAT at the destination country's rate
From the scheme's effective dateApply the VAT rate in force in the buyer's member state on every concerned sale, from the moment registration takes effect.
- 4
File the quarterly OSS return
Within the month following each quarterList, country by country, the turnover achieved and the VAT owed, and pay the total amount in a single payment.
OSS and IOSS: two different schemes for two different situations
The OSS (Union scheme) and the IOSS (Import One Stop Shop) address two distinct situations and do not both apply to the same sale. The OSS covers distance sales of goods already located in the EU at the time of sale, plus certain B2C services between member states. The IOSS covers distance sales of goods shipped directly from a non-EU country to a private individual in the EU, in consignments with an intrinsic value not exceeding 150 euros.
Advantages
- A single registration and a single return for all covered B2C sales across the EU
- Avoids the procedures and costs of registering for VAT in every destination country
- The end customer sees their own country's VAT applied at checkout, with no customs surprise fee for IOSS shipments
Disadvantages
- Does not remove the need to identify the correct VAT rate per destination country
- Requires correctly sorting, sale by sale, which scheme applies (Belgian VAT, OSS or IOSS)
- Repeated failure to meet OSS filing obligations, with reminders from the authority ignored over several consecutive quarters, can lead to exclusion from the scheme
A business that sells both goods stored in Belgium and goods imported directly from non-EU countries may need to combine both schemes depending on each shipment's origin. Keeping clean VAT records, with a clear breakdown by destination country and by scheme, remains essential to avoid filing errors.
Need help structuring your e-commerce VAT?
Monsiegesocial supports you with your VAT obligations and the administrative management of your e-commerce activity in Belgium.
Going further
- VAT for self-employed people in Belgium: thresholds and exemptions, for the general VAT rules that apply to self-employed people.
- VAT on intra-EU services in Belgium, for B2B sales that fall outside the OSS.
- The official OSS scheme guide on the European Union portal, for the detailed rules per member state.
