OSS in the future in the EUROPEAN UNION

VAT'S IMPORTANT 2026 - 06

In collaboration with

RÖDL & PARTNER AG

NEWSLETTER 2026 - 06

OSS in the future: Consignment stocks in the European Union are about to end

---

What it is about

Almost a year ago, on April 14, 2025, the EU VAT reform "ViDA" (VAT in the Digital Age) came into force. This legislative reform aims to adapt the EU VAT system to the demands of a digitalized economy. Among its key measures, ViDA mandates the abolition of the call-off stock arrangements. This change will significantly impact businesses globally – including those based in Switzerland – that maintain stock in EU Member States. As things stand at present, the existing call-off stock arrangements within the EU remain valid only until June 30, 2028. This will be followed by a transition period until June 30, 2029. During this transition phase, goods already in storage can still be processed under the current simplification rules. However, it is crucial to note that no new supplies (transfers) to the warehouse will be covered by this regulation after the cut-off date in 2028. With the phasing out of the call-off stock regime, a new procedure takes its place: the reporting of intra-Community transfers of own goods via the One-Stop Shop (OSS). This mechanism is designed to replace the old regulation with a more streamlined reporting obligation.

One-Stop Shop (OSS) and its importance for Swiss companies

ViDA not only defines the One-Stop Shop (OSS) as a central pillar of future VAT compliance but also establishes it as the designated successor to the phasing-out consignment stock regime. The OSS concept itself is not a novelty in international trade; the concept already exists in the B2C sector for digital services and intra-Community distance selling. What is new under ViDA is the extension of this system to the B2B sector, specifically for the intra-Community movement of own goods. Swiss companies can already benefit from the OSS regulations if they maintain a permanent establishment in the EU or, more commonly, by registering for VAT in a single EU Member State. Under ViDA, what is already common practice in the B2C sector is now being established as a systematic solution for cross-border movements of goods in the B2B sector as well. According to current plans, the expanded One-Stop Shop for these purposes will be ready for use throughout the EU starting July 1, 2028. To serve as a valid alternative to the expiring consignment stock regime, the OSS is being extended to specific B2B situations, namely the intra-Community transfer of own goods.

The OSS is an electronic EU reporting procedure designed to avoid VAT registration obligations in multiple countries. It enables taxpayers with operations in different EU Member States to declare these movements centrally in their country of residence, or, in the case of Swiss taxpayers, in their Member State of identification. Through this system, they can handle the necessary VAT compliance and, where applicable, settle payments centrally. The central authority in the respective country then forwards the data to the relevant countries of activity. This procedure effectively eliminates the need for the consignment stock regulation, as local registration in the destination countries is no longer necessary.

Although the OSS is a regulatory framework specific to the EU, its impact on Swiss companies is profound, as call-off stock arrangements have long been a favored logistics model for accessing the European market. The new OSS scheme is not merely compensation for the expiring regime; it serves as a strategic instrument to mitigate the disadvantages of the transition and significantly simplify procedures in international trade. However, the clock is ticking. With the old simplification ending, businesses face a binary choice, whether to adopt the centralized OSS reporting or revert to the complex local VAT registrations. Therefore, forward planning of VAT processes and IT systems is essential for companies operating internationally. This is the only way to ensure long-term legal certainty and successfully meet the dynamic requirements, particularly in the wake of the ViDA reform. We are ready to support you in navigating this transition successfully!

We will be happy to assist you with any questions you may have in the area of VAT.

Your Rödl & Partner AG team

Your terraVAT team

Sabrina Frey Dr. Florian Hanslik

Manager terraVAT Founding Partner terraVAT