Do you sell goods or provide services to consumers in other EU countries? Instead of registering separately in every Member State, you can settle VAT in a much simpler way by using the VAT OSS (One Stop Shop) scheme. From 2025, VAT OSS remains a key tool for Polish businesses that want to report VAT through one VAT return filed with the Polish tax office.
In this guide, we explain how the EU scheme works, who can use it, which transactions it covers, and how the VAT obligation works under OSS. You will also learn what benefits come from reporting VAT across the EU through a single return, and how Altera.app can make document preparation, VAT rate selection, and cross-border sales handling much easier.
What transactions are covered by the VAT OSS scheme?
Does VAT OSS apply only to goods, or also to services provided to consumers in EU countries?
The VAT OSS system covers not only the sale of goods shipped to other EU countries, but also electronic services, transport services, and other services provided to consumers in different Member States. This means that an active VAT taxpayer who sells goods or provides services to consumers across the EU does not have to register separately in every EU country.
Under the EU OSS scheme, VAT can be reported in one Member State only, which makes doing business across the EU much easier.
VAT OSS applies in particular to intra-EU distance sales of goods and to selected services, including electronic services and supporting services.
A Polish entrepreneur running an online store and selling goods to the Member State of consumption may settle VAT under the OSS scheme instead of registering in that country directly.
For services provided to consumers, such as transport services or tourism-related services, VAT must be settled in the Member State of consumption.
VAT is reported through one VAT return submitted to the Polish tax office, which replaces the need to meet separate VAT obligations in other EU countries.
VAT OSS registration: step by step for a Polish business
Does every VAT taxpayer have to register for the One Stop Shop scheme?
Not every active VAT taxpayer is required to use OSS. The need for registration arises when you sell goods or provide services to consumers in other EU countries.
A Polish business can join the VAT OSS system voluntarily, but in practice it is often the most practical option for e-commerce sellers operating across the EU. Thanks to one VAT return filed with the Polish tax office instead of separate filings in each EU country, VAT reporting becomes much simpler.
Registration is completed electronically through the e-Tax Office (e-Urząd Skarbowy) and requires submitting the relevant notification to the head of the tax office responsible for the EU scheme.
Under OSS, an active VAT taxpayer files both a domestic VAT return and a separate OSS return covering VAT due in the Member State of consumption.
The OSS VAT return must be filed by the end of the month following the quarter in which the transaction took place.
Once the tax authority accepts the registration, the taxpayer gains access to the VAT OSS system and can settle VAT without registering in another EU country.
How to report VAT OSS in practice in 2025
In what currency and in which country do you file VAT returns under the OSS scheme?
VAT returns under the OSS procedure are filed only in Poland, with the Polish tax office, and always in euro. This means a Polish taxpayer does not need to handle VAT filings separately in every EU country.
VAT is settled centrally, and then the tax authority transfers the relevant payment to the correct Member State of consumption.
VAT reporting under OSS is done quarterly, and the return must be submitted by the end of the month following the relevant quarter.
In one VAT return, the active VAT taxpayer includes all supplies of goods and services made to consumers in other EU countries.
The VAT OSS scheme covers both distance sales of goods and services such as electronic services, transport services, and other consumer-related services.
For both goods and services, the VAT rates applied are those of the Member State of consumption, which means they must be identified correctly for each transaction.
Instead of filing in multiple countries, the taxpayer can report VAT in one return, which removes the need for separate VAT registration and reporting in each Member State and makes running a business across the EU much easier.
VAT OSS and accounting for companies: what an active VAT taxpayer should know
Does the One Stop Shop system really make VAT reporting easier for companies?
Yes, because the OSS scheme allows VAT to be settled through one return instead of separate filings in every EU country. This means an active VAT taxpayer can simplify business operations within the European Union and avoid dealing with complicated VAT procedures in multiple jurisdictions.
In practice, VAT OSS gives companies greater control over VAT reporting and removes the need to communicate with multiple tax authorities.
Under OSS, VAT returns cover the full sale of goods and provision of services to consumers across the EU.
Proper VAT reporting still requires ongoing monitoring of VAT rates in each Member State of consumption.
The Polish tax office does not require the taxpayer to split payments by country on their own. It is the tax authority that transfers the funds to the correct Member States, while the taxpayer’s duty is simply to submit one return.
If errors occur, it is possible to file the original return and then submit a correction, which gives taxpayers more flexibility.
Companies using VAT OSS do not lose the right to benefit from the VAT exemption threshold in Poland. VAT reporting under OSS is handled separately from the domestic VAT return.
FAQ – the most frequently asked questions about VAT OSS and VAT in EU countries
What are the sales thresholds for the OSS scheme?
The threshold covers sales of goods and services to consumers across the EU with a total annual value of EUR 10,000. Once this limit is exceeded, a Polish entrepreneur must settle VAT under the EU OSS scheme.
What happens if a Polish business exceeds the OSS sales threshold?
In that case, VAT must be settled in the Member State of consumption, using the VAT rates applicable in that country. However, an active VAT taxpayer still does not need to register separately in every Member State, because one return filed with the Polish tax office is enough.
Can a VAT taxpayer combine VAT OSS with other reporting systems?
Yes. It is possible to use the domestic VAT return and the VAT OSS procedure in parallel. For services or supplies carried out in Poland, the domestic VAT obligation remains unchanged. For services provided to consumers in another EU country, OSS reporting applies.
What are the penalties for incorrect VAT returns?
If a transaction was made and the Member State of consumption was indicated incorrectly, the tax authority may impose financial penalties. It is worth remembering that the original return can be corrected after filing the quarterly declaration.
Where do I file an OSS return?
A Polish taxpayer files the return through the e-Tax Office and submits it to the Second Tax Office Warszawa-Śródmieście, which handles the settlement of payments between Member States. This means VAT reporting does not have to be carried out separately in every EU country.
Summary – VAT OSS as a smarter way to settle VAT across the EU
Why is it worth using the OSS scheme for cross-border sales?
Thanks to the OSS procedure, a Polish entrepreneur does not have to register in every Member State where a transaction takes place. VAT is settled through one VAT return filed with the Polish tax office, and the tax authority then transfers the funds to the relevant Member State of consumption.
For online sellers operating across the EU, this is a major simplification.
The key benefits of VAT OSS
– reporting VAT in one return instead of in every EU country separately
– faster VAT settlements for goods sales and services provided to consumers
– no need to register in other EU countries
– simpler management of VAT obligations under the EU scheme
– the ability to report VAT in euro through an electronic filing submitted in the e-Tax Office
👉 Try Altera.app and see for yourself that VAT OSS reporting can be simple, fast, and far less painful.
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