Introduction
The world of online commerce is changing at breakneck speed. Where consumers used to primarily make their purchases at the trusted shop around the corner or a national webshop, today the whole world is open. An order can come from Spain today, from the Netherlands tomorrow, and the day after via a dropshipper from China. For entrepreneurs, this presents an ocean of opportunities, but at the same time, it has long put the European VAT rules in a bind. Those rules were simply not designed for a digital market without borders. The result? A tangle of exceptions, complicated declarations, and sometimes even lost tax revenues.
To put an end to this, the European Commission presented the reform package VAT in the Digital Age (ViDA) in March 2025. This ambitious plan runs until 2035 and has three clear objectives: to modernise VAT taxation, combat fraud, and make business life easier. ViDA is based on three pillars.
- E-invoicing and digital reporting, which makes invoicing and data exchange faster and more standardised.
- Rules for the platform economy, make the platforms clearly more responsible and sometimes even grant them a "deemed supplier" status.
- A single VAT registration, door expansion of the One Stop Shop (OSS) to Import One Stop Shop (IOSS).
It is precisely that last pillar that promises a breakthrough for international e-commerce. From 1 July 2028, the OSS and IOSS schemes will fundamentally change. This means fewer registrations, simpler declarations, and more focus on entrepreneurship. In this article, we will guide you through these changes and explain what this concretely means for webshops, dropshippers, and platform sellers.
1. OSS: What changes in 2028?
The OSS scheme – fully known as One Stop Shop – was originally designed to make life easier for entrepreneurs. Instead of having to submit VAT returns in each individual EU country, online shops could centrally report their B2C distance sales through a single OSS return in their own member state. Convenient, but until now the scheme has mainly been limited to B2C sales. From July 2028, this will fundamentally change: OSS will become broader, smarter, and much more powerful.
The main extensions are threefold. Firstly, B2B and B2C inventory movements are being added. This means that you can also report the movement of your own stock within the EU via OSS. Think of a webshop that sells products in the Netherlands but also uses a fulfilment centre in Germany or France. Until now, you often had to arrange local VAT registrations for that – soon it will all be possible through one central declaration. Secondly, OSS will be expanded to energy products such as electricity and gas supplied to individuals starting from 2027. And thirdly, the current call-off stock scheme will be abolished, as OSS will fully take over that function.
Why is this so important? Imagine you run a webshop with stock distributed across the Netherlands, Germany, and France. Today, that means: three countries, three VAT numbers, three administrative obligations. From 2028, that will mean: one OSS declaration from the Netherlands. This not only saves a lot of paperwork and costs for tax representatives but also reduces the chance of errors or fines. In short: your administration becomes clearer, your cash flow more predictable, and you have more time to focus on what really matters – growing your business.
2. IOSS: What changes for imports?
The IOSS scheme (Import One Stop Shop) has been specifically developed for goods valued at up to €150 that are delivered from outside the EU to consumers within the EU. The idea is simple: you collect the VAT at the point of sale, so the customer is not unpleasantly surprised by additional costs at the door. This makes the purchasing process more transparent and customer-friendly.
But from 1 July 2028, a lot will change. Firstly, the responsibility will shift entirely to the seller or the platform. Where VAT payments are currently sometimes handled by postal and courier services through the so-called Special Arrangement, that will come to an end. You as a business owner – or the platform on which you sell – will be directly responsible for the proper and timely payment of VAT.
Are you working without IOSS? Then it will become a lot more difficult. From 2028, you will be required to register for VAT in each individual EU country where you deliver. This means higher costs, more administration, and a greater chance of errors. With IOSS, you can manage this from one member state, in a clear and efficient manner.
A second important change is the introduction of unique transaction IDs. From 1 March 2028, each shipment will receive a consignment ID linked to your IOSS number. This will enable customs services to check more quickly and significantly reduce fraud.
Practical example: suppose you run a dropshipping webshop in the Netherlands and deliver directly from China. Without IOSS, you may have to register in as many as 10 or 15 EU countries. With IOSS, one central registration is sufficient, and your customer never pays unexpected VAT upon delivery. This makes your webshop more reliable and attractive.
" From 2028, a single OSS declaration will be the key to simplicity and fewer registrations. "
3. What does this concretely mean for your business?
Anyone looking at the future of European VAT can see one thing clearly: OSS and IOSS will become the linchpin of cross-border e-commerce. Formally, participation in IOSS remains voluntary, but in practice it will soon be hardly workable to operate without it. The alternatives – separate registrations in all EU countries or working through the outdated “Special Arrangement” – are simply too expensive and too complex. For dropshippers, importers, and webshops purchasing outside the EU, IOSS is effectively indispensable.
The OSS scheme is also evolving into the central declaration system within Europe. With the expansion to B2B inventory movements, OSS suddenly becomes attractive to many more entrepreneurs than just pure B2C webshops. Especially companies that work with fulfilment centres in multiple countries benefit enormously: no more fragmented registrations, but one central report. This saves time, money, and uncertainty.
Furthermore, there is an increasing shift of responsibility towards platforms. Major players like Amazon and Bol.com may soon be designated as "deemed suppliers" and be liable for VAT themselves. For entrepreneurs, this means that commissions, contract terms, and reporting requirements are likely to become stricter and more transparent. The role of platforms in the VAT chain is becoming greater than ever.
That OSS and IOSS are not just an experiment is evident from the figures. In 2024 alone, more than €33 billion in VAT was declared through these schemes – an amount that continues to grow each year. Europe is fully committed to the digitalisation and centralisation of VAT collection. The message for entrepreneurs is clear: those who want to be prepared for the future should not view OSS and IOSS as an option, but as a strategic foundation for their international growth plans.
4. Action plan: What can you do now?
The new VAT rules are closer than you think. Waiting until 2028 is not an option; those who prepare now will avoid stress and surprises. With these six steps, you can ensure that your webshop or e-commerce business is ready for the future.
Step 1: Start IOSS on time
Formally, IOSS is voluntary, but practically speaking, it will become almost impossible to operate without it from 1 July 2028. Ensure that your registration is in order. Are you based outside the EU? Then arrange for a fiscal representative in advance.
Step 2: Prepare OSS now
If you are not using OSS yet, start your registration today and critically assess your IT and logistics. This way, you will be prepared for the expansion to inventory movements from 2027/2028.
Step 3: Automate your compliance
Ensure that your ERP or e-commerce platform can automatically calculate and report VAT via OSS or IOSS. Also, do not forget the processing of statistics, export data, and from March 2028 the new transaction IDs.
Step 4: Check contracts and liability
Platforms like Amazon and Bol.com may soon be jointly liable for VAT. Check your contracts carefully: who is responsible for mistakes?
Step 5: Follow the plan closely
OSS: IT adjustments 2025–2027, go-live of inventory movements from 1 July 2028.
IOSS: consignment IDs from 1 March 2028, new responsibility from 1 July 2028.
Step 6: Invest in knowledge
Follow webinars, read updates from the European Commission, and engage a VAT specialist. Mistakes in this transition can be costly – investing in knowledge pays off double.
5. Practical scenarios.
Scenario 1: The small online shop
Imagine you run a webshop from the Netherlands selling handmade jewellery. Your customers are mainly in Germany, Belgium, and France. Until now, you had to quickly apply for VAT numbers as soon as you exceeded the thresholds in other countries. With OSS, that is a thing of the past: you can manage the VAT for all those countries through a single central declaration in the Netherlands. Expanding later to the United Kingdom or the United States? For orders up to €150, IOSS provides a solution, so your customers do not have to pay unexpected VAT at the door.
Scenario 2: The big e-commerce player
Do you have a serious e-commerce operation with fulfillment centers in multiple countries – for example, the Netherlands, Germany, Poland, and Spain? Then you know how complex it is now: separate VAT registrations, returns, and sometimes expensive fiscal representatives in each country. Starting in 2028, that will change radically. Thanks to the expansion of OSS to stock movements, you will be able to handle all VAT obligations through a single registration. The benefit? Significantly lower administrative costs and a much more streamlined process.
Scenario 3: The dropshipper
Many dropshippers deliver directly from China or other non-EU countries. Without IOSS, this will become practically unworkable from 2028: you would have to register separately in 10 to 15 EU countries. With IOSS, everything remains clear. You settle the VAT at the point of sale, the customer never again has to pay unexpected extra costs to the mail carrier, and your webshop projects professionalism and reliability.
These three examples show that OSS and IOSS are not just rules, but concrete tools that make your business simpler, more efficient, and more customer-friendly.
6. Outlook beyond 2028.
The European Commission has made it clear with ViDA that the changes coming in 2028 are not the endpoint. Plans are already on the table for mandatory e-invoicing for all cross-border transactions and even real-time reporting of VAT data. There is also consideration of further expanding OSS and IOSS to include services. For entrepreneurs, this means the VAT landscape will become more digital, more tightly controlled, and increasingly centralized.
The changes taking effect on July 1, 2028, are therefore not minor adjustments at the margins, but a fundamental overhaul of how VAT is collected in the EU. Especially for entrepreneurs in retail, e-commerce, and dropshipping, this is the moment to look ahead. By automating processes now, reviewing contracts, and implementing compliance tools, you not only create peace of mind and clarity but also gain an advantage over your competitors.
Those who act in time will soon save high costs for local registrations, expensive fiscal representatives, and complicated administrative hassle. More importantly, you’ll lay the foundation for sustainable, international growth. OSS and IOSS are becoming the core of VAT compliance in Europe — the sooner you embrace that reality, the better positioned your business will be.
In short: don’t wait until 2028. Start preparing, testing, and implementing now. Don’t see OSS and IOSS as a burden, but as a strategic foundation. Companies that invest today in control and automation will reap the benefits tomorrow of simplicity, predictability, and scalability.