Selling in the EU: OSS/IOSS and VAT for e-commerce

A Swiss e-commerce selling to consumers in the European Union enters a VAT system that is not the Swiss one. Switzerland is outside the EU and the customs union: every shipment to a European customer is an export from Switzerland and an import into the EU, with its own VAT rules. Understanding them before launching sales avoids blocks at customs, unhappy customers and tax surprises.

Two distinct worlds: Swiss VAT and EU VAT

Let us start from the Swiss base. In Switzerland the standard VAT rate is 8.1% and liability is triggered beyond CHF 100,000 of worldwide turnover. Exports of goods abroad are exempt from Swiss VAT (with the right to deduct input tax). So much for the Swiss side.

The point is the other side of the border: when the goods enter the EU, the VAT of the country of destination applies. The European e-commerce reform, in force since 2021, completely redesigned the way this VAT is collected, introducing the OSS and IOSS one-stop shops.

IOSS: distance sales of imported goods

The IOSS (Import One-Stop Shop) concerns precisely the typical situation of the Swiss shop: goods shipped from Switzerland to an EU consumer, with an intrinsic value up to 150 euros.

How it works:

the seller registers for IOSS (through an intermediary established in the EU, required for non-EU sellers);
charges the customer the VAT of their country already at the time of purchase;
declares and pays that VAT monthly through a single IOSS return;
the parcel crosses customs without further import VAT, with faster clearance.

The advantage for the customer is huge: they pay the all-inclusive price, without surprises from the courier on delivery. Without IOSS, instead, the VAT (and any courier clearance fees) is requested from the recipient on arrival — with complaints and returns.

Watch out for the 150-euro threshold: above that value IOSS does not apply and the ordinary import rules are followed, with VAT and duties at destination.

OSS: when the goods are already in the EU

The OSS (One-Stop Shop) regime is needed in a different situation: when the seller holds stock already within the EU — for example in a logistics warehouse or at a marketplace centre — and from there makes intra-Community distance sales to consumers in other Member States.

In this case the OSS allows the VAT due in all States of destination to be declared in a single country, avoiding multiple registrations. It is the typical regime of those who use a marketplace’s logistics with European warehouses. It should be remembered, however, that holding stock in an EU State generally generates an obligation for local VAT registration in that State, separate from the OSS.

The 10,000-euro threshold

Within the EU there is a single threshold of 10,000 euros per year for intra-Community distance sales and certain digital services, below which the VAT of the country of departure may be applied. For a Swiss seller shipping from Switzerland, however, this threshold does not help as it does for an EU operator: imported goods follow the IOSS/import logic from the very first sale. The threshold matters above all when moving goods already internal to the Union.

Recurring mistakes

Treating the EU as a single, homogeneous market: the rate is that of destination, not a single one.
Ignoring the IOSS and dumping VAT and clearance fees onto the customer on arrival.
Forgetting local registration where stock is held.
Confusing the Swiss export exemption with the absence of VAT: the VAT is there, but it is the European one.

How we handle it

At SIH ONE we analyse the shop’s logistics model — direct shipment from Switzerland or warehouses in the EU — and from there build the correct VAT set-up: IOSS or OSS registration, appointment of the intermediary, management of thresholds and coordination with Swiss VAT on exports. The goal is a clean checkout for the customer and full compliance on both fronts.

Do you sell online to Europe from Switzerland? Let’s put your EU VAT in order.