Danish decision on OSS compliance reinforces the importance of meeting VAT obligations

27 August 2026

A recent Danish Tax Appeals Tribunal decision has reinforced the importance of meeting VAT reporting obligations under the EU's One Stop Shop (OSS) regime.

In the case, a company was excluded from the OSS scheme for two years after repeatedly failing to submit OSS VAT returns, despite receiving multiple reminders from the Danish Tax Agency. The company argued that staff changes and a mistaken belief that its system was automatically filing the returns caused the failure. However, the Tribunal confirmed that these circumstances did not excuse non-compliance and upheld the two-year exclusion.

Why is this important?

The ruling highlights the increasingly strict approach that EU tax authorities are taking towards OSS compliance. The decision confirms that businesses remain responsible for their VAT reporting obligations, regardless of internal process failures, staff turnover, or system configuration issues. Most importantly it confirms that repeated failures to file can result in removal from the OSS scheme and a two-year ban on using the Union OSS and other OSS/IOSS special schemes across the EU.

What does this mean for non-resident businesses?

For non-resident traders selling goods or services using the OSS across the EU, the case serves as an important warning. The OSS regime significantly reduces the administrative burden of multi-country VAT compliance, but access to the scheme can be lost if filing obligations are not met. Businesses that are excluded may be required to register and file VAT returns in multiple EU Member States, creating significant additional costs, complexity, and compliance risks.