OSS Compliance Guide: One Stop Shop VAT Invoices for EU B2C Sales

Complete guide to generating OSS-compliant invoices from payment platform CSV exports

Tax Disclaimer: This guide provides general information about OSS (One Stop Shop) VAT compliance and invoice requirements. It is not intended as tax, legal, or accounting advice. VAT regulations vary by EU member state and individual business circumstances. Always consult with a qualified tax advisor or accountant familiar with EU VAT law and your specific situation before making compliance decisions. CSV2Invoice provides technical invoice generation tools but does not offer tax advisory services.

Table of Contents

What is the OSS (One Stop Shop) Scheme?

The OSS (One Stop Shop) scheme is an EU VAT simplification measure introduced on July 1, 2021, designed to reduce the administrative burden for businesses selling digital services, telecommunications, or broadcasting services to consumers (B2C) across multiple EU member states.

Before the OSS scheme, businesses had to register for VAT in every single EU country where they had customers. If you sold a €10 SaaS subscription to customers in Germany, France, Spain, and Italy, you needed four separate VAT registrations, four quarterly VAT returns, and compliance with four different sets of local regulations.

The OSS scheme changes this: you register for VAT in just one EU member state (typically where your business is established), and you can report all your EU B2C sales in a single quarterly OSS return. The VAT you collect is then distributed to the appropriate member states by your OSS registration country.

Key OSS Principle: Destination-Based VAT

Under OSS, you charge VAT based on where your customer is located (destination principle), not where your business is located. If you're a Dutch company selling to a French consumer, you charge French VAT (20%), not Dutch VAT (21%). Your invoices must clearly show the customer's country-specific VAT rate.

Services covered by OSS include:

  • Digital services: SaaS, software downloads, mobile apps, e-books, online courses, streaming services, cloud storage
  • Telecommunications: VoIP services, internet access, messaging services
  • Broadcasting: Video streaming, audio streaming, podcast subscriptions

The OSS scheme replaced the previous MOSS (Mini One Stop Shop) system and is now the standard compliance mechanism for B2C digital services across the EU.

Who Needs OSS Registration?

You must register for the OSS scheme if you meet all three of these criteria:

  1. You're selling to consumers (B2C): Your customers are individuals without a valid VAT number. Business-to-business (B2B) sales with VAT number validation use the Reverse Charge mechanism instead.
  2. You're selling digital services: Your products are electronically supplied services (SaaS, downloads, streaming, online courses, etc.), not physical goods.
  3. You exceed the €10,000 threshold: Your total annual B2C sales of digital services to other EU member states (excluding your own country) exceed €10,000 in the current or previous calendar year.

Important: Mandatory vs. Voluntary Registration

Mandatory: If you exceed €10,000 in annual EU B2C sales, you must register for OSS and charge destination-based VAT rates.

Voluntary: Below €10,000, you can choose to register for OSS voluntarily. Many businesses do this to offer competitive local pricing to EU customers rather than applying their domestic VAT rate to all sales.

Business Types That Commonly Need OSS:

  • SaaS companies: Monthly/annual software subscriptions sold to EU consumers
  • Online course creators: Digital courses, webinars, membership sites sold across the EU
  • Mobile app developers: In-app purchases, premium app downloads via platforms like Stripe or Paddle
  • Content creators: Premium subscriptions, digital downloads (e-books, templates, music)
  • Streaming services: Video, audio, or podcast subscription services
  • WordPress plugin/theme sellers: Digital products sold via WooCommerce, Gumroad, or similar platforms

Non-EU businesses: If you're based outside the EU but sell digital services to EU consumers, you must register for the Non-Union OSS scheme in any EU member state (Ireland is popular due to English language support). The rules and invoice requirements are identical to the Union OSS scheme.

Understanding the €10,000 OSS Threshold

The €10,000 threshold is one of the most misunderstood aspects of OSS compliance. Here's exactly how it works:

What Counts Toward the Threshold?

  • Included: All B2C sales of digital services to customers in other EU member states (excluding your own country)
  • Excluded: Sales to customers in your own country, B2B sales with VAT validation, sales of physical goods, sales outside the EU
  • Measurement: The threshold is based on the sale value excluding VAT
  • Period: Calendar year (January 1 - December 31)

Threshold Calculation Example

Your business is established in the Netherlands. In 2024, you made the following B2C digital service sales:

  • Netherlands customers: €50,000 (excluded - your own country)
  • Germany customers: €4,500 (counts toward threshold)
  • France customers: €3,200 (counts toward threshold)
  • Spain customers: €2,800 (counts toward threshold)
  • Italy customers: €1,900 (counts toward threshold)

Total counting toward threshold: €4,500 + €3,200 + €2,800 + €1,900 = €12,400

Result: You exceeded the €10,000 threshold. You must register for OSS and charge each customer's local VAT rate for sales in 2025 (and retroactively for 2024 once you exceeded the threshold).

What Happens When You Cross the Threshold?

Once you exceed €10,000:

  1. Immediate obligation: You must register for OSS and start charging destination-based VAT rates
  2. Retroactive application: The OSS rules apply from the moment you crossed the threshold, not from when you register
  3. Locked in: Once you're in the OSS scheme, you cannot go back to the threshold exemption until the following calendar year (even if your sales drop below €10,000)
  4. Invoice correction: You may need to issue credit notes and re-invoice customers with the correct country-specific VAT rates

Voluntary OSS Registration Below €10,000

Many businesses register for OSS voluntarily even below the threshold because:

  • Competitive pricing: You can show local VAT-inclusive prices (e.g., €100 in Germany vs. €121 if you applied Dutch VAT)
  • Customer trust: Local VAT rates feel more familiar and transparent to customers
  • Growth planning: Easier to set up OSS now rather than scrambling when you hit the threshold mid-year
  • Platform requirements: Some payment platforms require OSS registration for automatic VAT calculations

OSS Invoice Requirements

OSS-compliant invoices must meet all EU VAT invoice requirements plus specific OSS scheme indicators. Missing even one required element can invalidate the entire invoice for tax purposes.

Mandatory Fields for OSS Invoices

Invoice Element OSS Requirement Example
Sequential Invoice Number Unique, gap-free, chronological numbering sequence INV-2024-001, INV-2024-002, INV-2024-003 (no gaps)
Invoice Date Date the invoice is issued (format: DD/MM/YYYY or YYYY-MM-DD) 15/03/2024 or 2024-03-15
Supply Date Date the service was provided (often same as invoice date for digital services) 15/03/2024
Your Business Name Full legal business name as registered Digital Services BV
Your Business Address Full registered address including country Keizersgracht 123, 1015 CJ Amsterdam, Netherlands
Your VAT Number VAT registration number including country code NL123456789B01
Customer Name Full name (individual) or company name Jean Dupont or Dupont Consulting
Customer Billing Address Full address including country (determines VAT rate) 15 Rue de Rivoli, 75001 Paris, France
Service Description Clear description of digital service provided SaaS Subscription - Monthly Plan (March 2024)
Amount Excluding VAT Net amount before VAT calculation €100.00
VAT Rate Customer's country standard VAT rate for digital services 20% (French standard rate)
VAT Amount Calculated VAT based on customer's country rate €20.00
Total Including VAT Gross amount (net + VAT) €120.00
Currency Currency code (typically EUR for EU sales) EUR
OSS Scheme Notation Clear indication that VAT is handled under OSS "VAT accounted for under EU One Stop Shop scheme"

Critical: Customer Country Determines VAT Rate

The most common OSS invoice mistake is applying your domestic VAT rate to all sales. Under OSS, each invoice must use the customer's country-specific VAT rate:

  • France: 20%
  • Germany: 19%
  • Spain: 21%
  • Italy: 22%
  • Netherlands: 21%
  • Ireland: 23%
  • Belgium: 21%

Applying the wrong VAT rate invalidates the invoice and can result in tax authority penalties.

Additional Best Practices

  • Payment method: Include how the payment was made (Stripe, PayPal, bank transfer)
  • Payment status: Indicate "PAID" or payment date for completed transactions
  • Terms and conditions: Reference to your service terms or refund policy
  • Contact information: Email address and phone number for customer support
  • Company registration: Chamber of Commerce number or equivalent business registration ID

Why Platform CSV Exports Aren't OSS-Compliant

Payment processors like Stripe, PayPal, Shopify, and WooCommerce provide excellent transaction data in CSV format, but these exports are not legally compliant OSS invoices. Here's why:

The Compliance Gaps in Platform Data

OSS Requirement Platform CSV Reality Compliance Risk
Sequential invoice numbers (gap-free) Transaction IDs or charge IDs (not sequential, have gaps) HIGH - Automatic audit rejection
OSS scheme notation No indication of OSS compliance HIGH - Unclear VAT treatment
Customer country-specific VAT rate May show total VAT but not rate breakdown MEDIUM - Cannot verify correct rate applied
Full customer billing address Often incomplete or missing HIGH - Cannot prove customer location
Professional invoice format Raw transaction data in spreadsheet MEDIUM - Not presentation-ready
Clear service description Generic product names or SKUs LOW - May need clarification

Real-World Example: Stripe CSV Export

A typical Stripe CSV export includes:

  • Charge ID: ch_3Oabc123xyz (not a sequential invoice number)
  • Customer email: customer@example.com
  • Amount: 12000 (cents, requires conversion)
  • Currency: EUR
  • Country: FR (two-letter code only)

What's missing for OSS compliance:

  • ❌ No sequential invoice number
  • ❌ No full billing address (just country code)
  • ❌ No explicit VAT rate (20% for France)
  • ❌ No VAT amount breakdown
  • ❌ No OSS scheme notation
  • ❌ No professional invoice format

Result: This data cannot be used as-is for OSS compliance. It must be transformed into proper invoices with all required fields.

Why platforms can't provide compliant invoices:

  • Payment processors are transaction facilitators, not invoice issuers for tax purposes
  • They don't know your business's sequential numbering system
  • They can't add your company's legal entity details and VAT number
  • They don't generate audit-trail documentation required by tax authorities
  • Their receipts are designed for payment confirmation, not tax compliance

Converting CSV to OSS-Compliant Invoices

The good news: while platform CSV exports aren't compliant invoices, they contain all the raw data needed to generate compliant invoices. CSV2Invoice bridges this gap through intelligent field mapping and automated compliance logic.

The 3-Step Conversion Process

Step 1: Export Platform CSV

Export your transaction data from your payment platform:

  • Stripe: Payments > Export > Select date range > Include: Customer details, Amount, Tax, Country
  • PayPal: Reports > Activity download > Custom range > All transaction details
  • Shopify: Orders > Export > Include: Customer, Billing address, Tax details
  • WooCommerce: WooCommerce > Orders > Export orders > Select all fields
  • Paddle: Reports > Transactions > Export CSV > Include tax details

Critical fields to include: Transaction ID, Date, Customer name, Customer billing address (full), Customer country, Product/service description, Amount, Currency, VAT/Tax amount

Step 2: Map CSV Fields to Invoice Requirements

CSV2Invoice automatically detects your CSV structure and prompts you to map platform fields to required invoice fields:

  • Order ID field → Maps to transaction reference (not invoice number - that's generated)
  • Customer Name field → Maps to invoice "Bill To" name
  • Customer Address fields → Maps to full billing address
  • Customer Country field → Triggers country-specific VAT rate (critical for OSS)
  • Product Name field → Maps to service description
  • Amount field → Maps to net amount (pre-VAT)
  • VAT/Tax field → Validates correct rate was applied

The system saves your mapping for future uploads - one-time setup, permanent automation.

Step 3: Generate Compliant Invoice Pack

Once fields are mapped and company details entered, CSV2Invoice automatically:

  1. Assigns sequential invoice numbers in chronological order (INV-2024-001, INV-2024-002, etc.)
  2. Validates VAT rates against customer country (France → 20%, Germany → 19%, etc.)
  3. Adds OSS scheme notation to every invoice: "VAT accounted for under EU One Stop Shop scheme"
  4. Includes your company details (name, address, VAT number) on every invoice
  5. Formats invoices professionally as PDF documents with clean layout and branding
  6. Creates audit trail linking each invoice back to original transaction ID
  7. Packages all invoices in a downloadable ZIP file organized by invoice number

For large batches (>2,000 transactions), the system processes in the background and emails you the download link when ready.

One-Time Setup, Permanent Automation

The first time you upload a CSV from a platform (e.g., Stripe), you'll spend 3-5 minutes mapping fields and entering your company details. Every subsequent upload from that platform is fully automated:

  • Upload CSV file
  • Click "Generate Invoices"
  • Download compliant invoice pack

This turns monthly compliance from a 4-hour manual task into a 30-second automated process.

Platform-Specific OSS Compliance Guides

Every payment platform structures CSV exports differently. We've created detailed, platform-specific guides with exact export instructions, field mapping examples, and common troubleshooting tips for the most popular platforms:

Payment Processors

E-Commerce Platforms

SaaS Billing Platforms

Each platform guide includes:

  • Step-by-step CSV export instructions with screenshots
  • Platform-specific field mapping recommendations
  • Common data formatting issues and solutions
  • VAT rate validation for OSS compliance
  • Example invoices generated from that platform's CSV

Can't find your platform?

CSV2Invoice supports 200+ platforms. Browse all OSS platform guides or try the universal CSV mapper which works with any CSV structure.

Frequently Asked Questions

What is the OSS (One Stop Shop) scheme?

The OSS (One Stop Shop) scheme is an EU VAT simplification measure that allows businesses selling digital services, telecommunications, or broadcasting services to consumers (B2C) across multiple EU member states to register for VAT in just one EU country. Instead of registering for VAT in every EU country where you have customers, you register once in your OSS member state and report all your EU B2C sales in a single quarterly return. The OSS scheme became mandatory on July 1, 2021, replacing the previous MOSS (Mini One Stop Shop) system.

Who needs to register for the OSS scheme?

You must register for OSS if you're an EU-established business making B2C sales of digital services, telecommunications, or broadcasting services to customers in other EU member states that exceed €10,000 per year across all EU countries combined. Non-EU businesses supplying these services to EU consumers must also register for the Non-Union OSS scheme. If your annual EU B2C sales are below €10,000, you can apply your domestic VAT rate to all EU sales, but many businesses choose to register for OSS voluntarily for competitive pricing advantages.

What are the invoice requirements for OSS compliance?

OSS-compliant invoices must include: (1) Sequential invoice number with no gaps, (2) Invoice date and supply date, (3) Your business name, address, and VAT number, (4) Customer's name and billing address including country, (5) Clear description of digital services provided, (6) Amount excluding VAT, (7) VAT rate applied (customer's country rate), (8) VAT amount calculated, (9) Total amount including VAT, (10) Currency used, and (11) A note indicating 'VAT accounted for under OSS scheme' or similar language. The customer's country determines the VAT rate applied, not your business location.

What is the €10,000 OSS threshold and how does it work?

The €10,000 OSS threshold is an annual limit measured across all EU member states (excluding your own country). Once your total B2C digital services sales to other EU countries exceed €10,000 in the current or previous calendar year, you must register for OSS and charge each customer's local VAT rate. Below this threshold, you can apply your domestic VAT rate to all EU sales. The threshold applies to the total value of sales excluding VAT. Important: The threshold is cumulative across all EU countries, not per country. If you sell €5,000 to France and €6,000 to Germany in one year, you've exceeded the threshold (€11,000 total).

What happens if I don't comply with OSS invoice requirements?

Non-compliance with OSS invoice requirements can result in: (1) Rejection of your OSS VAT return by tax authorities, (2) Penalties ranging from €50 to €5,000 per non-compliant invoice in countries like Germany and France, (3) Requirement to register for VAT in each individual member state (bypassing OSS benefits), (4) Back-tax assessments with interest charges, (5) Loss of input VAT deduction rights, (6) Potential VAT audits across multiple jurisdictions. Some countries like Italy and Spain impose automatic penalties for missing or incorrect invoices. The administrative burden and costs of correcting non-compliance far exceed the investment in proper invoicing systems.

How do I convert my payment platform CSV to OSS-compliant invoices?

Converting platform CSV exports (from Stripe, PayPal, Shopify, etc.) to OSS-compliant invoices involves: (1) Export your transaction data ensuring it includes customer country, VAT amount, and sale date, (2) Map CSV fields to required invoice fields (customer name, address, product details, pricing), (3) The system automatically applies the correct VAT rate based on customer country (e.g., 21% for Netherlands, 19% for Germany), (4) Sequential invoice numbers are assigned automatically in chronological order, (5) OSS scheme notation is added to each invoice, (6) Batch generate all invoices as professional PDFs. CSV2Invoice automates this entire process - upload your CSV once, map the fields, and generate hundreds of compliant invoices in seconds.

Can I use my payment processor's default receipts for OSS compliance?

No, payment processor receipts (from Stripe, PayPal, Square, etc.) are not legally compliant OSS invoices. These platforms provide transaction confirmations, not tax invoices. Key gaps include: (1) Missing sequential invoice numbers (they use transaction IDs which aren't gap-free), (2) No OSS scheme notation, (3) Often missing customer's full billing address, (4) May not display the customer's country-specific VAT rate correctly, (5) Don't indicate VAT was handled under OSS. Using processor receipts in an OSS audit will result in penalties. You must generate separate, compliant invoices with proper numbering, VAT rates, and OSS declarations.

What platforms are supported for OSS invoice generation?

CSV2Invoice supports OSS invoice generation for 200+ payment platforms and e-commerce systems including: Payment processors (Stripe, PayPal, Square, Braintree, Adyen), E-commerce platforms (Shopify, WooCommerce, Magento, BigCommerce), SaaS billing systems (Paddle, Chargebee, Recurly, Zuora), Course platforms (Teachable, Thinkific, Podia, Kajabi), Membership platforms (MemberPress, Patreon), and Marketplaces (Gumroad, Lemonsqueezy, Sellfy). Each platform has a dedicated guide with specific CSV export instructions and field mapping examples. The system handles platform-specific quirks like date formats, currency codes, and tax calculation methods automatically.

Complete Platform Directory: All 208 Supported Platforms

Generate OSS-compliant invoices from any of these platforms. Click your platform for detailed CSV export instructions and field mapping guides:

Payment Processors (32 platforms)

E-Commerce Platforms (31 platforms)

SaaS & Subscription Billing (21 platforms)

Course & Membership Platforms (14 platforms)

Digital Product Marketplaces (19 platforms)

Freelance & Service Platforms (8 platforms)

Creator & Crowdfunding Platforms (11 platforms)

Event & Booking Platforms (20 platforms)

Form & Workflow Platforms (9 platforms)

CRM & Marketing Platforms (13 platforms)

Regional Payment Providers (30 platforms)