Last updated 01/09/2026
Expanding into the European market is an exciting opportunity for businesses worldwide. However, many companies hesitate because they assume they need to establish a legal entity in each country where they plan to sell. While that is one option, it is often costly and time-consuming. Fortunately, the European Union offers a simpler solution: activating a VAT number through its centralized platforms, such as the One-Stop-Shop (OSS) or Import One-Stop-Shop (IOSS). This approach allows businesses to comply with EU tax regulations without the burden of creating multiple subsidiaries.
Why Choose VAT Registration Over Incorporation?
Setting up a company in an EU member state involves incorporation fees, local accounting requirements, and ongoing compliance obligations. For businesses that only need to sell goods or services to EU consumers, this can be excessive. By registering for VAT instead, companies can legally trade across the EU without forming a local entity. This method is faster, more cost-effective, and significantly reduces administrative complexity.
Moreover, having an EU VAT number enhances credibility. Customers and marketplaces often prefer working with businesses that are VAT-compliant, as it signals professionalism and ensures transparent pricing. For non-EU businesses, this is particularly valuable because it removes barriers to entry while maintaining compliance with European tax laws.
How Does OSS Work?
The EU introduced the OSS scheme to simplify VAT obligations for cross-border sellers. Under this system, businesses can report and pay VAT for all EU sales through a single portal, rather than registering in every country where they have customers. This means one quarterly VAT return and one payment, which the chosen member state then distributes to other EU tax authorities.
To activate the OSS procedure, you need to register through the online tax portal of a single EU Member State—your “Member State of identification.” This eliminates the need to register for VAT in every EU country where you sell to consumers. The activation process depends on whether your business is established within the EU or outside of it.
Union Scheme (For EU Businesses)
If your business is based in an EU country and sells goods or services to private individuals in other EU Member States, you must register for the Union scheme via your home country’s tax authority portal.
- Action: Visit your national tax authority’s website. They will have a dedicated online portal (e.g., the BOP portal in Germany, the VAT OSS section in the Irish Revenue Online Service (ROS) for Irish businesses, or the Netheralnds’e-Herkenning enabled portal within the Belastingdienst) for OSS registration and filing.
- Requirement: You must already have a domestic VAT identification number.
Non-Union Scheme (For Non-EU Businesses)
If your business is not established in the EU and you sell services to private individuals within the EU (or in specific cases, goods already located within the EU), you can register for the non-Union scheme.
- Action: You can choose any single EU Member State to be your Member State of identification and register through their online portal.
- Requirement: You do not need a pre-existing EU VAT number. Upon registration, that Member State will allocate you a specific VAT ID number starting with “EU” (e.g., EUxxxyyyyyz) which is used solely for OSS declarations.
General Steps for Activation (Union/Non-Union Scheme)
While specific portal steps vary by country, the general process involves:
1. Access the Portal: Log in or create an account on your chosen Member State’s online tax portal.If your business is based in an EU country and sells goods or services to private individuals in other EU Member States, you must register for the Union scheme via your home country’s tax authority portal.
2. Select OSS Registration: Navigate to the section for One Stop Shop registration (Union or Non-Union scheme).
3. Provide Business Details: Enter your company information, existing VAT details (if applicable), and contact information.
4. Activate Your Account: The tax authority will send you activation data (e.g., a certificate file and password via email or post) to finalize your registration and access the filing system.
5. Confirm Activation: Once registered, your status may be confirmable on the EU VIES database (VAT Information Exchange System).
After activation, you can use the single portal to submit a single, quarterly VAT return for all eligible B2C cross-border sales within the EU. The local tax authority then distributes the collected VAT to the relevant Member States on your behalf.
The Business Advantage
Using VAT registration instead of incorporation offers several benefits. It accelerates market entry, reduces overhead, and simplifies compliance. It also improves the customer experience by avoiding customs delays and unexpected charges, particularly when using IOSS for low-value imports. Ultimately, this approach allows businesses to focus on growth rather than bureaucracy.
Why Choose Bolder Launch?
- Expert Local Knowledge
Located in the Netherlands, we have in-depth knowledge of Dutch laws, tax systems, and compliance requirements. Everything is handled in-house, so you never have to worry about third-party delays or miscommunications. - Focus on Your Core Business
Let us handle the complex tasks while you focus on growing your organization and driving success.
Conclusion
For global businesses looking to access the European market, the OSS and IOSS systems offer an unbeatable mix of simplicity, compliance, and reach. Instead of navigating multiple registrations and complex local rules, these EU-wide solutions provide a clear framework for cross-border trade, ensuring efficiency and transparency.
At Bolder Launch, we specialize in guiding businesses through VAT activation and EU compliance with confidence — whether through OSS registration, IOSS setup, or strategic tax planning. From initial registration to ongoing filings, we make European expansion simple, reliable, and secure.
Please contact us at launch@bolderlaunch.com / corporate@bolderlaunch.com or +31 76 230 0011 to learn more about how we can help expand your business in the Netherlands. We are more than happy to assist with guidance!
The publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No presentation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Bolder Business Services (Netherlands) B.V., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in reliance on the information contained in this publication or for any decision based on it.
