‘Revenues prove success of new VAT system’

Member states of the European Union collected 20 billion euros in VAT revenue last year through new ecommerce VAT portals. According to the European Commission, this demonstrates the success of the new filing options.

Two years ago, the European Commission introduced new systems as part of its efforts to ensure a more level playing field for businesses. The expanded One Stop Shop (OSS) and the newly introduced Import One Stop Shop (Import OSS) allow businesses to declare and transmit VAT in one member state for all their goods and services sales within the EU, as well as for low-value goods imported into the EU.

Single portal

Through the OSS mechanism, sellers can electronically file returns via a single portal instead of registering separately in each country where they sell their products. This simplifies VAT registration and reporting processes for sellers. The OSS system aims to promote VAT compliance and facilitate cross-border ecommerce within the EU.

The OSS system aims to facilitate cross-border ecommerce

In 2022, member states collected over 17 billion euros through the expanded OSS portal, which covers online sales within the EU. Additionally, 2.5 billion euros in VAT revenues was collected on imports of ecommerce goods. The Directorate-General for Taxation and Customs Union states: “This figure includes the new VAT revenues generated by the abolition of the VAT exemption that previously applied to imports of low-value goods not exceeding 22 euros and which was highly susceptible to fraud.”

26% increase

Overall, VAT revenues collected through the new systems increased by 26 percent compared to 2021 figures. Nearly 130,000 companies have registered to account for their VAT on online sales using the new framework, indicating the positive response from traders to the simplifications.

Almost 130,000 companies have registered

These new figures, based on data provided by member states themselves, demonstrate the successful implementation of the new VAT rules for European ecommerce, as emphasized by the directorate.