Decision Guide

OSS vs IOSS: Which Do You Need?

Confused about EU VAT schemes? OSS and IOSS serve different purposes. Here's a simple decision framework to know which one applies to your business.

VAT Information Notice

VAT rates and thresholds shown are based on EU regulations and may change. Rates are subject to change by member states. This is general information only - consult a VAT specialist or your accountant for compliance advice. Information current as of January 2025.

Quick Decision Tree

Answer these questions to find your VAT scheme

Question 1: What are you selling?

Digital products (SaaS, courses, ebooks, software)? → You need OSS

Physical goods already in the EU? → You need OSS

Physical goods shipped INTO the EU from outside? → Continue to Q2

Question 2: What's the value per package?

Under €150 per shipment? → You can use IOSS

Over €150 per shipment? → Standard import VAT applies (no IOSS)

Question 3: Do you need both?

Selling digital + physical from EU warehouses?OSS only

Selling digital + importing physical goods?Both OSS and IOSS

Only dropshipping from China/US?IOSS (if under €150)

Common Confusion Points

These challenges stop thousands of entrepreneurs from getting started. But they don't have to stop you.

  • OSS replaced the old MOSS scheme (for digital services)
  • IOSS is specifically for low-value imports from outside EU
  • Print-on-demand from EU warehouses = OSS, not IOSS
  • Amazon FBA in EU = OSS (goods are already in EU)
  • Dropshipping from China = IOSS (under €150)
The Solution

Xolo Leap + E-commerce: OSS and IOSS registration handled

Full VAT Support

Xolo Leap + E-commerce

OSS and IOSS registration handled

From €79/month + e-commerce add-on

  • OSS registration and quarterly filing
  • IOSS registration if needed
  • Automatic VAT rate calculation
  • Multi-scheme compliance
  • Quarterly reports for both schemes
  • Expert guidance on which applies
  • All EU countries covered
  • Audit-ready documentation

No credit card required

Frequently Asked Questions

Everything you need to know before getting started

All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.

Need Help With VAT Registration?

Xolo handles OSS and IOSS registration and filing for your Estonian company.