EU One Stop Shop (OSS) for Estonian OÜs: Complete 2026 Guide

What Is the EU One Stop Shop (OSS)?

The EU One Stop Shop (OSS) is a simplified VAT compliance scheme that allows Estonian OÜs to file a single quarterly VAT return for all EU B2C digital services sales — instead of registering for VAT in each EU country separately.

If your Estonian company sells digital products or services to consumers across the EU, the OSS scheme is almost certainly relevant to you. This guide explains exactly how it works, when you need it, and how to register.

Background: Why OSS Was Created

Before July 2021, selling digital services to EU consumers required registering for VAT in each EU country where you had customers. A company selling to Germany, France, and Sweden would need separate VAT registrations in all three countries.

The OSS scheme (which replaced the older MOSS scheme in July 2021) allows one registration, one return, one payment — all handled through your home country's tax authority. For Estonian OÜs, that means EMTA.

Which Services Are Covered by OSS?

OSS covers electronically supplied services (ESS) sold to private consumers (B2C) in EU member states. This includes:

• SaaS (Software as a Service)
• Online courses and digital training
• Digital downloads (ebooks, music, templates, fonts)
• Streaming services (video, music, podcasts)
• Cloud storage and hosting services
• Website templates and plugins
• Digital subscription products
• Online marketplace services

NOT covered by OSS:

• Physical goods (covered by IOSS — Import One Stop Shop)
• B2B services (these use reverse charge)
• Services that are not digital/electronic

The €10,000 Threshold for OSS Obligation

If your cross-border digital B2C sales to EU consumers are below €10,000 per calendar year, you can charge Estonian VAT (22%) on all EU sales, regardless of the customer's country.

Above €10,000, you must charge VAT at the rate of each customer's country and either:

1. Register for OSS and file through EMTA, or
2. Register separately in each EU country where you have customers (impractical for most businesses)

The €10,000 threshold counts cumulative cross-border B2C sales to ALL EU countries combined (not per country).

VAT Rates Across EU Countries

Under OSS, you charge each customer their country's local VAT rate. Here are the main rates in 2026:

Digital services often qualify for reduced rates in some countries. For example, ebooks are subject to 7% in Germany and 5.5% in France. Always verify the rate applicable to your specific service type.

OSS Filing Deadlines

OSS returns are filed quarterly via the e-MTA portal. The deadline is the last day of the month following the end of each quarter:

Note: OSS deadlines differ from Estonian domestic VAT (KMD) deadlines. KMD is due on the 20th, OSS on the last day of the following month.

How to Register for OSS via e-MTA

Step 1: Confirm You Are VAT Registered in Estonia

OSS registration requires that your company is already VAT registered (has a KMKR number) in Estonia. If you're not yet VAT registered, complete that step first.

Step 2: Access the e-MTA Portal

Log in to emta.ee with your e-Residency digital ID.

Step 3: Register for OSS

Navigate to VAT → OSS (One Stop Shop) → Register for OSS

Select EU OSS (as opposed to non-EU OSS or IOSS).

Provide:

• Date from which you want OSS registration to be effective
• Countries where you have customers (informational)

Step 4: Start Collecting Correct VAT

From your OSS effective date, charge each EU customer their country's applicable VAT rate. Your invoicing or subscription platform (Stripe, Paddle, LemonSqueezy) should support this automatically.

Step 5: File Quarterly Returns

Each quarter, log in to e-MTA, navigate to OSS, and complete the return showing:

• Sales amounts by country
• VAT collected by country
• Total VAT payable

Pay the total in one transfer to EMTA's designated OSS bank account.

OSS and Your Accounting Software

Most modern invoicing and subscription platforms support EU OSS compliance automatically:

• Stripe: Provides tax calculation APIs with country detection
• Paddle: Handles EU VAT as a Merchant of Record (you may not need OSS if using Paddle)
• LemonSqueezy: Also handles VAT as a Merchant of Record

Important: If you use Paddle or LemonSqueezy as a Merchant of Record (MoR), they handle VAT compliance on your behalf. You do NOT need to register for OSS in that case — but verify with your platform.

Practical Tips for OSS Compliance

Track Customer Location

You must determine each customer's location using at least two non-contradictory pieces of evidence:

• IP address geolocation
• Billing address country
• Bank country
• Phone area code

Most payment processors collect this automatically.

Keep Records for 10 Years

EU regulations require you to keep OSS transaction records for 10 years from the end of the year in which the transaction occurred. This includes customer country, amount, VAT rate applied, and invoice.

Zero Returns

If you had no EU B2C sales in a quarter, you must still file a nil OSS return.

Currency Conversion

If you invoice in a currency other than EUR, convert to EUR using the exchange rate published by the European Central Bank on the last day of the quarter.

Penalties for OSS Non-Compliance

If EMTA identifies that you should have been registered for OSS but weren't:

• Retrospective registration required from the date you exceeded the threshold
• Penalties and interest applied per the rules of each member state where you had customers
• In some cases, exclusion from OSS for 2 years (requiring direct registration in each country)

Frequently Asked Questions

Do I need OSS if I only sell to one EU country?

If you sell to consumers in only one EU country outside Estonia, you can register for VAT in that country instead of using OSS. But OSS is simpler if you sell to multiple EU countries.

What if I use Stripe for payments?

Stripe provides tax calculation APIs but is not a Merchant of Record — you remain responsible for VAT compliance. Enable Stripe Tax in your dashboard and register for OSS to cover EU sales.

Does OSS cover sales to customers in the UK?

No. The UK left the EU and OSS does not apply to UK sales. For UK digital services, separate UK VAT registration may be required if sales exceed the UK threshold (£85,000).

Can I deregister from OSS if my sales drop below €10,000?

Yes. You can deregister from OSS if you fall below the threshold for two consecutive calendar years. Contact EMTA to deregister.

What if I have customers in Norway or Switzerland?

Norway and Switzerland are not EU members. They have separate VAT rules. Norway has a threshold of NOK 50,000 for digital services (VOEC scheme). Switzerland has CHF 100,000. Consult a tax advisor for non-EU markets.

Stay Compliant with EU VAT Automatically

iResident tracks your EU digital sales and alerts you when you approach the €10,000 OSS threshold. Start your free compliance dashboard →

This article is for informational purposes only. VAT rules vary by country and service type — always consult a licensed tax advisor for your specific situation.