TL;DR
Businesses often delay foreign sales because the VAT registration process feels too messy, more cumbersome than costly.
That friction is about to shift. The European "VAT in the Digital Epoch" package includes a considerable expansion of the One Stop Shop (OSS) system, and the Dutch implementation is now moving through the Tweede Kamer. The core change: you can handle VAT across multiple EU countries with a single registration in the Netherlands.
Right now, the OSS primarily covers cross-border consumer sales. From July 2028, it will also cover domestic B2C supplies in other countries, stock transfers, and the new mandatory reverse charge mechanism. In practice, this leads to fewer foreign VAT numbers, fewer local filings, and less need to understand the administrative quirks of each country you sell into.
The EU claims this will cut administrative red tape by up to 95% for businesses using the system. That number is designed to sound impressive. But the real value is simpler: you can invoice faster, reduce your reliance on foreign advisers, and keep your VAT administration closer to home.
What Changes in Practice
If you currently sell across borders, you know the threshold: once your combined EU B2C sales exceed €10,000 in a calendar year, you must charge the VAT rate of the customer's country. Without OSS, that means separate registrations in each country where you have customers.
The expansion changes three things:
First, you can report stock transfers and subsequent domestic sales through the OSS. If you store goods in Germany or arrange installations in Belgium, the way you handle VAT today may differ from 2028. The current call-off stock simplification will be phased out.
Second, the mandatory reverse charge becomes broader. From July 2028, if you supply goods or services to a VAT-registered customer in another EU country and you are not VAT-registered there, the customer will account for the VAT. This reduces your registration burden. But it also shifts reporting precision onto you. The customer needs correct information to apply the reverse charge properly.
Third, the OSS will no longer be limited to cross-border consumer sales. You will be able to report domestic B2C supplies in other countries through the same system. This matters if you sell directly to end customers in multiple countries without maintaining local entities.
Where the Risk Moves
Simplification does not mean less work. It means different work.
You may no longer need a German VAT number. However, you will need to be more precise in how you report transactions through your Dutch system. The Belastingdienst will distribute collected VAT to other EU countries based on your OSS return. If your transaction classification is unclear or inconsistent, the error does not stay local. It travels.
The e-invoicing requirements that come into force from July 2030 add another layer. You will need to issue structured e-invoices in a standard EU format within 10 days of the supply. Holding a valid e-invoice will become a material requirement for VAT recovery. This means your invoice process needs to be tight before the deadline, not after.
The risk does not disappear. It moves from registration complexity to reporting accuracy.
What This Means for Your Administration
If your current invoicing procedure is manual, inconsistent, or relies on memory rather than documentation, the OSS expansion will expose that. The system rewards businesses that keep clean records. It also rewards those who classify transactions correctly and issue invoices on time.
You do not need perfect systems. You need clear enough systems that, as the OSS broadens, your own process does not become the weak link.
Commence by reviewing how you currently handle cross-border sales:
* Do you consistently track the €10,000 threshold?
* Do you correctly classify B2B and B2C transactions?
* Do you document stock transfers and installations abroad?
* Do you issue invoices within a predictable timeframe?
If any of these areas feel unclear, that is where the friction will land when the system expands.
What to Do Now
The changes will phase in between 2027 and 2029. That feels far away, but in practice, it means your systems, contracts, and routines need to adapt gradually. Waiting until the rules are fully in force is often too late.
Three practical steps:
One, if you already use the OSS for cross-border consumer sales, review your quarterly returns. Are they accurate? Are you classifying transactions correctly? The expanded system will use the same structure. Any gaps in your current process will carry forward.
Two, if you store goods in other EU countries or arrange installations abroad, map out how you currently handle VAT for those transactions. The call-off stock simplification will be phased out from July 2028. You will need to report those movements through the OSS instead.
Three, if you sell B2B across borders, prepare for the mandatory reverse charge. Ensure your invoices clearly indicate whether the customer should account for VAT under the reverse charge mechanism. This requires correct customer VAT numbers and clear invoice language.
Bottom Line
The OSS expansion improves the playing field for businesses that want to grow across borders without becoming bureaucratic. But it rewards those who keep things organized.
Fewer foreign registrations can mean clearer processes. But this only works if your own administration is tight enough to support it. Clean invoicing, correct classification, and consistent reporting become more important, not less. The real takeaway is not the €81 million in diminished administrative burden at the EU level. It is simpler: if you want to sell beyond the Netherlands without the friction of multiple VAT registrations, the system is about to make that easier. But the system will also expect more precision from you in return.
Start preparing now, not in 2028.
