Sell across the EU. File one VAT return.
OSS lets you register once in Cyprus and report VAT on all EU consumer sales through a single quarterly return. No registering in 27 countries.
The short answer
The One Stop Shop lets a Cyprus business declare VAT on sales of goods and digital services to consumers in other EU countries through one quarterly return in Cyprus, instead of registering in each country. You charge each customer's country rate once your cross-border sales to EU consumers pass €10,000 a year, and the OSS return and payment are due by the last day of the month after each quarter. Selling internationally? tax.com.cy covers international tax in Cyprus.
- EU distance-sales threshold
- €10,000
- IOSS consignment limit
- €150
- Cyprus standard rate
- 19%
- Keep VAT records for
- 6 years
WITHOUT OSS
Register for VAT in every EU country you sell to
Up to 27 separate VAT returns per quarter
27 different tax authorities to deal with
Huge compliance overhead
WITH OSS
One registration in Cyprus
One quarterly return covering all 27 EU states
One payment to Cyprus Tax Department
Full EU market access
Do you need OSS?
OSS — How it works
Customer buys from you
EU consumer purchases your SaaS or digital product
Local VAT rate charged
Your system charges the customer's country rate — 20% France, 19% Germany, 25% Sweden etc.
Quarterly OSS return
You file one return in Cyprus listing sales by country and VAT collected
One payment to Cyprus
Pay total VAT collected to Cyprus Tax Department
Cyprus distributes
Tax Department forwards VAT to each EU member state automatically
✓ Simplified: You never deal with another EU tax authority directly. Cyprus handles distribution to all 27 member states on your behalf.
Selling physical goods under €150? See our IOSS registration guide →
EU VAT Rates You Will Charge — By Country
⚠ Note: Reduced rates may apply to specific product categories. Digital publications, e-books and online courses have reduced rates in some member states — verify before going live.
OSS Registration in Cyprus — Step by Step
Confirm you meet the criteria
Selling B2C digital services or goods, cross-border EU sales over €10,000
Gather required documents
Cyprus VAT number, company details, bank account
Submit OSS registration via Taxisnet
Section: One Stop Shop registration
Receive OSS confirmation
Typically 2–3 weeks
Update your checkout
Apply correct local VAT rate per customer country
File quarterly OSS return
Due by end of month following each quarter
Pay quarterly VAT to Cyprus Tax Department
Single payment, distributed automatically
OSS vs Registering in Each Country
OSS
One registration in Cyprus
One quarterly return
One payment
One tax authority relationship
Covers all 27 EU states
No local language filings
Per-country registration
Up to 27 registrations
Up to 27 returns per quarter
Up to 27 separate payments
27 tax authority relationships
Local language requirements in some states
Local accountants potentially needed in each
OSS was designed specifically to remove this burden. If you are not using it you are creating unnecessary overhead.
B2B vs B2C — Know the Difference
OSS only covers B2C sales — to consumers who are not VAT registered. B2B sales to EU businesses use reverse charge instead — no OSS needed for those.
B2C — use OSS
Customer is an individual or a business without a VAT number. Charge their local VAT rate. Report via OSS quarterly return.
B2B — use reverse charge
Customer provides a valid EU VAT number. Invoice without VAT. They account for it themselves. Keep VIES validation records.
Mixed — split correctly
Many businesses have both. Your checkout needs to capture VAT numbers from B2B customers and apply local rates to everyone else. We help set this up correctly.
OSS Compliance Checklist
Review and check off each item to ensure compliance.
Set Up Local VAT Rates on Your Platform
Shopify
Tax overrides per country in settings
NativeWooCommerce
EU VAT plugin handles rates automatically
PluginStripe
Automatic tax feature covers EU digital services
NativeCustom
Taxjar or Avalara APIs for rate lookup
APIMost modern payment and ecommerce platforms support EU VAT rates natively. The OSS return itself is filed separately — your platform data feeds into the return preparation.
Frequently asked questions
Work out the VAT on your own figures
Add or remove VAT at any Cyprus rate, with the rates from our facts table.
Open the VAT calculator →