OSS scheme below 10,000 euros: advantages and disadvantages

If your sales to private customers in other EU countries stay below 10,000 euros, you do not have to join the OSS. You can, and the BZSt says that choice binds you for at least two calendar years. Here is what you gain, what it costs and what to clarify first.

Last updated: 27 October 2026

In brief

  • Obligation: Below 10,000 euros joining is not mandatory. German VAT rates then apply. Above it the OSS is not mandatory either; it is the alternative to registering in each destination country.
  • Gain: With the OSS you report all EU countries in one return to the BZSt instead of country by country.
  • Cost: Quarterly return even with no sales, payment by bank transfer, and a lock-in of at least two calendar years.

Is the OSS voluntary below 10,000 euros, and should I rather stay below?

Yes, it is voluntary: you do not have to join as long as you stay below the threshold. Staying below 10,000 euros saves you the quarterly returns, but it means the German VAT rate on those sales. The BZSt writes: if your relevant sales did not exceed 10,000 euros in the previous year and are not expected to this year, joining the OSS is not mandatory. You then declare the sales with the applicable German VAT rate in your domestic return (Section 3c (4) UStG). The exception applies only if you are established in just one EU country. The 10,000 euros count your distance sales to other EU countries together with telecommunications, broadcasting, TV and electronic services to private customers there. Above it, the destination country's rate applies; the OSS is then the way to handle that in one return per quarter instead of registering in each country. How the threshold is counted is in The 10,000 euro threshold in the OSS; whether the small-business rule fits is in OSS and small business.

What does the OSS give me?

The advantage according to the BZSt: you do not have to register in every EU country where you make sales covered by the scheme. You file no separate return there and pay those countries' VAT not there but centrally to the BZSt, in one return per quarter. Important for Amazon sellers: if Amazon stores your goods in another EU country, the OSS does not cover that. Moving your own goods to another EU country counts as a supply (Section 3 (1a) UStG) and is not among the sales the OSS covers (Section 18j (1) UStG); for that you need your own registration in the storage country. How the procedure works overall is in OSS explained simply.

When you waive the threshold, the destination-country principle also applies to your distance sales: the place of supply is where the goods are when the transport ends at the customer. So you calculate with the destination country's rate. It can be higher or lower than the German one, depending on the country.

What are the disadvantages?

The BZSt lists these obligations. Anyone who repeatedly fails to meet them, or meets them late, is excluded from the scheme.

  • A return every quarter, even with no sales. Deadlines: 30 April, 31 July, 31 October and 31 January. A nil return is also required, see OSS nil return.
  • Payment by bank transfer only. Direct debit is not possible. The payment reference carries the Kassenzeichen and the period, see OSS payment.
  • Keep records for ten years. The BZSt can request them.
  • BZSt mail arrives through the portal. The BZSt recommends switching on the notification function. How to get in: BZSt portal login.
  • Input VAT from other EU countries only via the input VAT refund procedure if you have only OSS sales there. More: OSS and input VAT.
  • Corrections in a later return, within three years. If you have already left the OSS, you correct directly with the tax authorities of the countries of consumption, see Correct an OSS return.

How long am I bound?

According to the law and the BZSt, the waiver of the threshold binds you for at least two calendar years (Section 3c (4) UStG). The registration notice to the BZSt counts as that waiver, and registration generally takes effect at the start of the next calendar quarter.

For leaving, the BZSt names a withdrawal period of 15 days before the start of a new quarter (Deregister from the OSS). These are two different things: the withdrawal ends only the OSS procedure (Section 18j (1) UStG), while the two years apply to the waiver of the threshold (Section 3c (4) UStG). The BZSt separates them itself: you declare the waiver to the tax office and notify your OSS participation to the BZSt. If you leave the OSS within the two calendar years, the destination country's rate still applies to your distance sales, and you would then have to register in each of those countries yourself. So plan to join for at least two calendar years.

If you exceed the threshold during the year, you can register until the tenth day of the month after you exceeded it; as the start date you enter the day you exceeded it. Retroactive registration after that is not possible. See also OSS or local VAT registration.

How VAT GPT helps

VAT GPT is the tax software for Amazon and eBay sellers in Germany: your OSS return first, then VAT, EÜR, trade tax and income tax, calculated and filed in one place.

  1. You import your Amazon and eBay CSV reports, and VAT GPT splits the sales by Germany and the EU countries.
  2. You decide whether to join.
  3. If you join, VAT GPT calculates the OSS return for all EU countries and, with VAT GPT Pro, sends it to the BZSt.

The decision, the registration with the BZSt and a possible deregistration are your steps outside VAT GPT. There is Free, Go (30 days free with all Pro features) and Pro. Try for Free Now

Not tax advice: the content does not replace individual advice.

Frequently asked questions

Is the OSS worth it below 10,000 euros? It depends on your countries and effort. The duties above recur every quarter, even without sales. In return you report all countries in one place.

Is joining voluntary? Below the threshold yes; the BZSt says it is not mandatory there.

Can I leave right away? The OSS, yes, with 15 days' notice before a quarter starts. But the threshold waiver binds you for at least two calendar years: for that time you pay VAT in the destination country, and without the OSS that means registering in each country. See above.

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