VAT on B2C Sales, OSS and Exports Outside the EU

The €10,000 OSS threshold, when to charge customer-country VAT, the One-Stop-Shop, zero-rated exports and services to non-EU clients — for 2026.

Hugo Lefèvre14 June 20269 min read

Selling to businesses abroad has a clean answer — the reverse charge. Selling to consumers abroad, or outside the EU entirely, is where freelancers get stuck. This guide covers the €10,000 rule, the One-Stop-Shop, and what happens when your customer is in New York instead of Naples.

The €10,000 rule: the one number that flips everything

There is a single EU-wide annual threshold of €10,000 for your combined cross-border B2C sales of goods plus digital (TBE) services; below it you charge home-country VAT, above it you charge the customer's country VAT. This is set by Article 59c of the VAT Directive. Three things trip people up:

It is combined — goods and digital services count together, not separately.
It is EU-wide — you add up all your cross-border B2C sales to all other EU countries, not country by country.
It is net of VAT, and there is no grace period — the sale that crosses €10,000 is already taxed in the customer's country.

Worked example. You are based in France and over the year sell €4,000 of goods to Spain, €3,000 to Germany, and €4,000 of online courses to Italy. That is €11,000 combined — you have crossed the threshold. From the sale that tips you over, you must charge the customer's country rate (e.g. Italian VAT on the Italian course), not French VAT.

How the One-Stop-Shop (OSS) saves you from 26 registrations

The OSS Union scheme lets you register once in your home country and file one quarterly return for all your EU B2C sales, instead of registering for VAT in every customer's country. You charge each customer their country's rate, then declare and pay it all through a single portal run by your home tax authority, which distributes the money. You keep OSS records for 10 years. Even below €10,000 you can opt in voluntarily (binding for two calendar years) — useful if you'd rather not face a sudden mid-year switch.

Digital services: always taxed where the customer is

Telecommunications, broadcasting and electronic (TBE) services — downloads, SaaS, e-books, streaming, paid webinars — are taxed at the customer's location once you pass the €10,000 threshold (Article 58). The €10,000 micro-business relief only helps a supplier established in a single member state selling cross-border within the EU. For digital sales to consumers, collect two non-contradictory pieces of location evidence (e.g. billing address plus IP country). General (non-TBE) B2C services follow a different default — the supplier's country under Article 45 — so don't assume the €10,000 rule covers every service you sell.

Selling outside the EU: exports and non-EU clients

Exports of goods to non-EU countries are zero-rated if you keep proof of export, and most B2B services to non-EU customers fall outside the scope of EU VAT.

Goods to a non-EU country — zero-rated under Article 146, but only if you hold valid evidence the goods left the EU (customs exit certificate, transport documents). Without proof, your tax authority can treat the sale as domestic and assess VAT.
Services to a non-EU customer — generally outside the scope of EU VAT because the place of supply is the customer's country; you issue an invoice without EU VAT and keep evidence the customer is established outside the EU.

A quick word on imported goods: IOSS

The Import One-Stop-Shop (IOSS) lets sellers collect EU VAT at checkout on imported goods in consignments not exceeding €150, so the customer faces no surprise charges on delivery. Note a 2026 customs change that sits alongside IOSS: from 1 July 2026 the EU replaces the €150 customs-duty exemption with a temporary flat €3 customs duty per item (Council Regulation (EU) 2026/382). That is a customs-duty change, not a VAT change — import VAT has applied to all imports regardless of value since 2021.

Frequently asked questions

What is the €10,000 OSS threshold?

It is a single EU-wide annual threshold for your combined cross-border B2C sales of goods and digital (TBE) services to consumers in other EU countries. Below €10,000 (net) you may charge your home-country VAT; once you exceed it, you must charge the customer's country VAT from that sale onward, and you can report it through the One-Stop-Shop (OSS).

How does the One-Stop-Shop (OSS) work?

The OSS Union scheme lets you register once in your home country and file a single quarterly return covering B2C sales to consumers across all EU countries, paying the VAT due in each. It replaces the need to register for VAT separately in every country where your consumers are located.

Do I charge VAT on digital services to EU consumers?

Digital (telecommunications, broadcasting and electronic, or TBE) services to EU consumers are taxed at the customer's location once you exceed the €10,000 EU-wide threshold (Article 58). Below that threshold a micro-business established in one member state may charge home-country VAT instead. The threshold only helps small cross-border sellers within the EU.

Do I charge VAT on sales outside the EU?

Generally no EU VAT. Exports of goods to non-EU countries are zero-rated provided you keep proof of export (Article 146), and most B2B services to non-EU customers are outside the scope of EU VAT because the place of supply is the customer's country. Keep evidence in both cases.