Managing Pan-EU VAT compliance for dropshippers can be challenging—especially when combining OSS and Amazon FBA sales. This case study shows how hellotax helped an Austrian e-commerce group stay compliant across seven EU countries while handling both dropshipping and FBA obligations.
The Client: An Austria-Based Multichannel Dropshipper Going Pan-EU
An established e-commerce group in Austria runs a hybrid model designed for Pan-EU VAT compliance for dropshippers, combining:
- Dropshipping to EU consumers under the OSS scheme, and
- Amazon FBA Pan-EU with planned storage in FR, ES, PL, IT, CZ, NL, BE (with DE already active).
With in-house warehouses and marketplace growth, they needed a VAT framework that could scale and withstand scrutiny.
The Challenge: Audit Pressure + Two VAT Models in Parallel
The client faced a complex mix of risks and requirements:
- Active audit by the Austrian tax office—with a potential request to reclassify dropshipping reporting under OSS.
- Pan-EU storage via Amazon FBA—triggering local VAT registrations and returns in 7 countries.
- Two legal reporting tracks (OSS for cross-border B2C shipments and local VAT for FBA/storage), which often get misclassified if data isn’t clean.
- Channel data alignment (Amazon + own warehouse DS flows) and deadline pressure for registrations and first filings.
Managing two reporting systems and multiple tax authorities makes Pan-EU VAT compliance for dropshippers especially difficult during audits or marketplace expansion.
In similar situations, many sellers face temporary OSS suspension or are asked to correct prior filings during audits. To learn how this process works and how to restore access, check our guide on OSS scheme exclusion and rejoining steps in Germany — the same rules apply across the EU.
To understand the EU-wide framework behind the OSS system, you can refer to the European Commission’s official guide on VAT special schemes.
The Solution: A Dual-Track VAT Setup Built for Dropshipping and FBA
hellotax designed a package to cover both the OSS dropshipping flow and FBA Pan-EU obligations, providing a scalable model for Pan-EU VAT compliance for dropshippers under active audit conditions.
1) Country Scoping & Registration Plan
- Confirmed storage/fulfilment footprint for FR, ES, PL, IT, CZ, NL, BE.
- Sequenced VAT registrations and EORI checks to avoid stock movement delays.
- Mapped which sales belong to local VAT (FBA from stored stock) vs. OSS (cross-border DS from AT/DE warehouses).
2) Audit-Ready Data Architecture
- Implemented transaction tagging by fulfilment method (DS vs. FBA), warehouse country, and ship-to country.
- Standardized evidence packs (invoices, transport docs, stock movement proofs) for each market to address audit questions fast.
3) OSS & Local Returns—Cleanly Split
- OSS: kept dropshipped B2C cross-border sales consolidated in OSS (filed from the home country).
- Local VAT: filed domestic sales from each Amazon storage country locally (FR/ES/PL/IT/CZ/NL/BE) with correct rates and ledgers.
- Built guardrails so the same sale never appears in both OSS and local returns.
4) Amazon Pan-EU + Own Warehouse Flows
- Connected Amazon and the client’s ERP/WMS to the hellotax platform.
- Automated country-level allocations, pro-forma invoices for stock transfers, and intra-EU acquisition reporting where relevant.
5) Ongoing Compliance & Change Control
- Monthly/Quarterly VAT filings across all countries.
- Threshold monitoring and warehouse-event alerts (when Amazon adds a new storage country).
- Dedicated account manager to steer audit responses and coordinate with tax offices when needed.
Understanding how dropshipping interacts with OSS is key to keeping reports correct and avoiding double declarations. For a deeper dive into when OSS can and can’t be used for dropshipping transactions, read our guide on dropshipping and the OSS scheme explained.
The Outcomes: Compliance, Clarity, and Room to Scale
With hellotax, the client:
Completed 7-country VAT registrations for FBA with clean backdating where needed.
Kept OSS compliant for dropshipping—even under audit review.
Reduced risk of double-reporting and rate errors through data rules and tagging.
Gained a single compliance dashboard for two fulfilment models and all entities.
Stayed expansion-ready for new EU markets without re-engineering the tax stack.
Why Pan-EU VAT Compliance for Dropshippers Matters
- Dropshipping (OSS) and FBA (local VAT) can co-exist—if your data cleanly separates flows.
- Storage = local VAT. The moment stock sits in FR/ES/PL/IT/CZ/NL/BE, local registrations and returns are mandatory.
- Audits focus on classification. Clear documentation and consistent rules prevent costly re-assessments.
- Automation beats spreadsheets when you add more countries, channels, and warehouses.
Many of these hybrid operations qualify as chain transactions, where goods move between multiple sellers and countries under a single transport. Understanding which delivery is the “moving” one is essential for correct VAT reporting. For a detailed explanation of these rules, see our full article on VAT chain transactions in the EU.
Key Services Used
- Multi-country VAT registrations (FR, ES, PL, IT, CZ, NL, BE)
- OSS setup and ongoing reporting for dropshipping
- Monthly/Quarterly VAT filings + EC Listings & Intrastat where required
- Amazon + ERP/WMS data integration
- Stock movement support (pro-forma, acquisitions, reconciliations)
- Dashboard with real-time obligations and filing status
- Dedicated account manager for audit coordination
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Lessons Learned (You Can Apply Today)
- Map your flows first: warehouse → ship-to country → B2C/B2B → DS vs. FBA.
- Decide reporting lanes early (OSS vs. local VAT) and stick to them.
- Tag every transaction with fulfilment method and warehouse country.
- Prepare evidence (invoices, CMR/transport docs, stock transfer records) for audits.
- Automate before you scale—from 3 to 7 countries and beyond.
Planning Pan-EU FBA while you dropship under OSS?
hellotax specializes in Pan-EU VAT compliance for dropshippers, offering automation, expert support, and audit-ready data across all major EU marketplaces.
Book a free consultation and get a country-by-country plan for your dropshipping + FBA expansion.
Curious how other online sellers scaled across Europe while staying VAT compliant? Explore more hellotax case studies to see how Amazon, Shopify, and multichannel sellers manage OSS, FBA, and local VAT with automated tools and expert guidance.
The post Case Study: Pan-EU VAT Compliance for Dropshippers – How an Austrian Seller Managed OSS and FBA appeared first on Hellotax Blog.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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