EU OSS vs Local VAT Registration for Shopify: The Most Efficient VAT Compliance Route

Key takeaways

Shopify sellers storing inventory in Poland and selling to Germany, Spain, and the UK need to register for VAT in each of those countries, as OSS does not cover situations with stock held in another EU state or sales to the UK. Centralizing fulfillment in Poland reduces logistics issues, but proper VAT registration and filings in each destination country are still required for full compliance.

Key points:

• Using OSS only simplifies VAT for B2C EU sales if you do not store stock in multiple countries.
• If you hold stock in Poland, you must register for VAT there and in each country where you store/warehouse goods, including Germany, Spain, and the UK.
• The UK is not covered by the EU OSS, so you need a separate VAT registration and returns.
• Centralizing fulfillment in Poland reduces logistics costs and complexity compared with storing goods in multiple countries.
• Professional tax providers can handle multi-country VAT needs and reduce the risk of errors or fines.

EU OSS versus local VAT registration for Shopify

EU OSS helps Shopify sellers handle VAT for B2C sales across the EU with a single return, but if you store stock in a country like Poland, you must register for local VAT in Poland and in each Member State where you hold your stock—such as Germany, Spain, or outside the EU, such as the case of the UK.

Using OSS alone is insufficient when distributing goods from a Polish warehouse. The most efficient route for logistics and VAT compliance is to centralize fulfillment in Poland and complete local VAT registrations in Germany, Spain, and the UK. OSS does not cover the UK, so separate registration is required there.

Introduction

Shopify VAT compliance is a daily concern for every growing store shipping across Europe. Sellers with stock based in Poland, sending orders to customers in Germany, Spain, and the UK, face tough choices: Should you register for VAT locally in each country, or use the EU OSS (One Stop Shop) system?

Both options promise to keep you on the right side of the law, but they come with different rules, costs, and paperwork. Having helped hundreds of businesses sort their Shopify VAT compliance, we at 1stopVAT know these decisions can make or break your margins—and your peace of mind.

Let’s unpack what actually works in practice for Shopify sellers shipping out of Poland, using real examples and clear numbers, not theory.

For insights into how storing stock in an EU warehouse impacts your VAT obligations, see our article on how storing stock in the EU or the UK affects your Amazon FBA and Shopify VAT obligations.

OSS versus Local VAT Registration: What’s the Difference?

The quick answer:

EU OSS is ideal for Shopify sellers who do not store stock outside their home country. It allows you to file one VAT return for all B2C sales across the EU (except the UK), saving loads of paperwork and risk. But if your Shopify business keeps inventory in Poland to serve buyers in Germany, Spain, and the UK, OSS alone doesn’t solve your VAT headaches.

Local VAT registration means registering in each country where you either:

• Store goods before sale
• Sell enough goods to cross that country’s VAT threshold

For a detailed case study on warehousing and VAT implications when storing stock in Poland, see our Warehousing and VAT case study from Poland.

When you keep all your inventory in Poland and ship from there, you will need:

• Polish VAT registration (for holding stock locally)
• German, Spanish, and UK VAT registrations (for cross-border B2C sales)

Each local VAT registration comes with its own filing schedules, recordkeeping rules, and audits.

Further reading: Fusion Accountants explains the detail behind registration requirements.

Detailed VAT Obligations for Shopify Sellers

In summary:

If you have stock in Poland and sell to Germany, Spain, and the UK, you are required to register for local VAT in all four, if you, as the PL-based vendor, hold or distribute stock in other Member States. If you don’t hold stock in other Member States or the UK, for intra-EU sales, you can ease tax compliance with EU OSS registration.  

Polish warehouse sellers must collect and report German and Spanish VAT when they cross the intra-EU B2C sales threshold. In the UK, post-Brexit rules mean OSS does not apply, so UK VAT rules stand alone. This means a completely separate UK VAT registration and return process, regardless of your EU setup.

Step-by-Step Compliance Process for Shopify Stores

If you hold or distribute stock from Poland and sell into Germany, Spain, and the UK, here’s what you do:

1. Register for VAT in Poland (since you store products there).

2. Register for VAT in Germany, Spain and other Member States where you hold or distribute stock

3. Register for VAT in the UK for all sales, since the UK is outside the EU OSS scheme.

Ongoing tasks:

• File separate local VAT returns in each country, following each tax authority’s calendar.
• Keep transaction-level records for each jurisdiction, often up to 10 years (even if you leave the market).
• Deal with audits and notices in each territory.

This multi-country approach requires significantly more paperwork than using OSS, which consolidates these filings into a single EU return. 

Logistics Route Analysis: The Efficient Option

For most Shopify businesses shipping from Poland, centralizing your warehouse is the best option. Here’s why:

• You avoid duplicating stock across multiple EU countries, reducing local VAT registrations and compliance headaches.
• Shipping directly from your Polish warehouse to Germany, Spain, and the UK keeps things manageable—even if you still need to register locally for UK VAT, but you can use OSS for EU sales
• Centralized fulfillment reduces logistics management costs and lowers the risk of oversupply, undersupply, or stock write-offs across additional locations.

Moving inventory closer to each buyer in multiple countries seems like a win, but actually increases your VAT compliance cost and risks. It means registering, filing, and paying VAT in every country where your goods are located. 

But there is no universally accepted solution to this sales scenario. It depends on your business priorities, sales volume, client diversification, transaction types, and other factors. Customized solutions and VAT compliance can be easily managed with an accredited VAT consultant. 

Cost Comparison: OSS vs Local VAT Registration

Here’s the reality in 2026:

• Local VAT registration means separate registration fees, local agent costs, multiple VAT returns, and the high risk of missing a filing or payment. Each market (Poland, Germany, Spain, UK) has its own late penalty structure.
• OSS lets you file ONE quarterly EU return for all B2C sales across EU members—if you do NOT physically store stock in more than one country.
• Maintaining full compliance means you must keep accurate records for at least 10 years in all four countries.

In practice, our clients report spending 2–3x more on compliance when operating with multiple local VAT registrations than when using OSS alone. This is backed by external research on VAT registration costs.

Alternative VAT Approaches: Making Customers the Importer of Record

Some Shopify sellers ask: “What if I make my customers the Importer of Record (IOR)?”

• Advantage: You shift VAT and customs reporting to your buyer, reducing your own compliance tasks.
• Drawback: Customers incur additional costs at checkout or during delivery. This can hurt conversions and trigger negative reviews.
• If local market presence and customer service matter, this approach is usually too risky, especially in competitive categories.

We’ve seen merchants lose repeat business with this model. It should be a last resort rather than a default setup. SimplyVAT explains importer of record risks here.

Role of Professional VAT Providers: How 1stopVAT Supports Shopify Sellers

Handling VAT registration and returns in four different countries can overwhelm any Shopify team—or even a trained accountant. That’s why working with specialized Tax Providers for Shopify makes sense.

At 1stopVAT, we take full responsibility for your VAT compliance:

• Register your business in every required country (Poland, Germany, Spain, UK)
• Handle local VAT returns, communication with authorities, and any record-keeping or audit requests
• Advise on the best logistics choices to reduce your compliance workload and costs

Our clients have found that this not only lowers their risk of costly mistakes or fines but also frees them to focus on growing sales and serving customers.

Conclusion and Recommendations

Shopify vendors with stock in Poland selling to Germany, Spain, and the UK must prioritize VAT compliance to succeed in European e-commerce. EU OSS is helpful, but since you hold inventory locally, you must navigate local VAT registration processes in all countries you target—including Germany, Spain, and, especially, the UK, which is outside the EU OSS zone after Brexit.

The best route for both logistics and VAT compliance?

• Centralize warehouse fulfillment in Poland.
• Register and file VAT locally in Poland, Germany, Spain, and the UK.
• Avoid moving stock to multiple countries unless you truly need to (it only adds cost and legal complexity).
• Use expert Tax Providers for Shopify, such as 1stopVAT, to handle paperwork and deadlines.

If you’re unsure how to minimize risk or simplify your Shopify VAT compliance, please contact 1stopVAT for a clear, tailored plan for your store. Our experience and hands-on support save you money, stress, and time—so you can focus on growing your sales across Europe.

Frequently Asked Questions