What is the VAT One Stop Shop (OSS) in France?
The VAT One Stop Shop, or OSS, is a European scheme that came into force on 1 July 2021. It allows businesses selling goods or services to private individuals in different EU countries to declare and pay the VAT for all their countries of consumption through a single portal in their country of establishment.
In practice, a French company selling online to private individuals in Germany, Spain and Italy can declare all that foreign VAT on the French OSS portal, without having to register in each of those countries. The aim is to drastically simplify VAT management in cross-border B2C commerce within the EU.
Limitations of the OSS for non-EU companies
The OSS is often presented as a universal solution, but its limitations are real, particularly for companies established outside the EU:
- No access to the Union Scheme: non-EU companies cannot use the OSS Union Scheme, which is reserved for companies established in an EU member state.
- Scope limited to B2C sales: the OSS (Non-Union Scheme) only covers services supplied to private individuals. Sales of goods are not included under this scheme.
- Stock in France not covered: if a non-EU company stores goods in France (warehouse, Amazon FBA, etc.), this generates local taxable transactions that the OSS does not cover. French VAT registration with a tax representative is mandatory.
- B2B sales excluded: sales to VAT-registered businesses in France do not fall under the OSS. They may be subject to reverse charge, but each situation must be analysed on a case-by-case basis.
The IOSS: a dedicated scheme for low-value e-commerce imports
The IOSS (Import One Stop Shop) is the counterpart of the OSS for imports. It applies to sales to private individuals in the EU of goods imported from third countries with a value of less than €150. It allows the seller to collect VAT at the point of sale (at the buyer's country rate) and remit it in a single monthly return.
For non-EU companies using the IOSS, registration must be done through a licensed intermediary established in the EU. This IOSS intermediary role is distinct from a standard VAT tax representative, but is often carried out by the same professionals.
| Scheme | For whom? | Which transactions? | Intermediary required (non-EU)? |
|---|---|---|---|
| OSS Union | EU companies | Intra-EU B2C distance sales | Not applicable |
| OSS Non-Union | Non-EU companies | B2C services in the EU | No (direct registration) |
| IOSS | All sellers | Import of goods < €150 B2C | Yes (mandatory for non-EU) |
| VAT Tax Representative | Non-EU companies | All French VAT transactions | Yes (the representative themselves) |
When does a tax representative remain mandatory despite the OSS?
Despite the simplification brought by the OSS, a VAT tax representative in France remains mandatory for non-EU companies in the following situations:
- Storage of goods on French territory (own warehouse, 3PL, Amazon FBA).
- Importation of goods into France followed by local resale (transactions "shipped from France").
- Intra-EU acquisitions in France (purchases from EU suppliers with delivery in France).
- Construction works or real estate-related services in France.
- Transactions subject to French VAT for which reverse charge by the customer is not applicable.
Given the complexity of VAT rules in France, it is strongly recommended to consult an accredited DGFiP tax representative to determine the most appropriate arrangement for your situation.