EU One-Stop-Shop (OSS) and the 10,000 EUR Threshold
If you sell to private individuals (B2C) in other EU countries, there is an important tax rule you need to know about. docs101 helps you handle this correctly.
Do I Need to Read This?
Yes, if you meet ALL of these conditions:
- Your company is in an EU country
- You sell to private individuals (not businesses) in other EU countries
- You sell digital services, software, or ship goods to those customers
No, if you only sell to businesses (B2B) with a VAT ID, or you only sell domestically, or you only export outside the EU.
The Short Version
| Your EU-wide B2C revenue | What happens | What to do in docs101 |
|---|---|---|
| Under 10,000 EUR/year | You charge your own country's VAT rate | Nothing -- this is the default |
| Over 10,000 EUR/year | You must charge the customer's country's VAT rate | Activate OSS in Company Settings |
The 10,000 EUR Threshold Explained
The EU has a simple rule: If your total B2C sales to customers in all other EU countries combined stay under 10,000 EUR per calendar year (net), you can keep using your own country's VAT rate on those invoices. This is called the origin principle.
Once you cross 10,000 EUR, or if you voluntarily opt in, you must switch to the destination principle: each invoice uses the VAT rate of the country where your customer lives. You report and pay this tax through the One-Stop-Shop (OSS) system with your own tax authority.
The 10,000 EUR threshold is cumulative across all EU countries -- not per country. If you sell 6,000 EUR to France and 5,000 EUR to Austria, you've exceeded the threshold even though neither country alone exceeds 10,000 EUR.
What docs101 Does for You
Dashboard Warning
When your EU B2C revenue reaches 70% of the threshold (7,000 EUR), docs101 shows a warning card on your dashboard with a progress bar. This gives you time to:
- Talk to your tax advisor
- Register for OSS at your tax authority
- Activate OSS in docs101
You can dismiss the warning with the X button. It will reappear the next calendar year (new year = new threshold). If you exceed the threshold, the warning stays visible until you activate OSS.
Automatic Tax Rate Switching
Once you activate OSS, docs101 automatically suggests the customer's country VAT rate when you add items to invoices.
Without OSS activated, docs101 uses your own country's VAT rate for all EU B2C invoices -- unless that specific invoice would push you over the 10,000 EUR threshold. In that case, docs101 automatically switches to the customer's country rate and shows a prominent warning.
DATEV Export
If you use the DATEV export, docs101 automatically separates:
- Domestic revenue -- Account 8400/4400 (appears in your regular VAT return)
- OSS revenue -- Account 8320/4320 (appears in your quarterly OSS report)
How to Activate OSS
- Go to Company Settings
- Find the Tax section
- Check "OSS (One-Stop-Shop) registered"
- Save
Before activating OSS in docs101, make sure you are actually registered for OSS with your tax authority. docs101 does not register you -- it only adjusts how invoices are created and exported.
FAQ
Q: I voluntarily want to use OSS even though I'm under 10,000 EUR. Can I? Yes. Activate OSS in Company Settings. Note that once you opt in with your tax authority, you're bound for at least 2 calendar years.
Q: Does docs101 register me for OSS? No. You need to register directly with your tax authority. docs101 only handles the invoicing and export side.
Q: What happens if I forget to activate OSS and I'm over the threshold? docs101 catches this in real time: when you create an invoice that would push your EU B2C revenue over 10,000 EUR, docs101 automatically suggests the customer's country tax rate and shows a warning.
Q: Does the dashboard warning count canceled invoices? No. Only invoices with status Open, Sent, or Paid are counted toward the threshold.