Revenue, registrations growth shows EU e-com VAT reforms' success

This is a clear sign that the 2021 reforms are delivering on their promise to simplify compliance, support businesses and ensure fairer taxation, an official release from the bloc said.

Through a single registration in one member state, the One Stop Shop (OSS) and Import One Stop Shop (IOSS) allow businesses to declare and remit VAT for cross-border sales of goods and services within the EU, as well as for imports of low-value goods. 

The latest figures confirm that businesses continue to make full use of these simplifications, which cut red tape and compliance costs, ensuring the collection of VAT as well.

In 2024 alone, over €24 billion was declared via the Union OSS, €2.8 billion via the non-Union OSS, and €6.3 billion through the Import OSS, representing a 26-per cent increase year on year (YoY).

Since the reforms were introduced in mid-2021, member states have collected nearly €88 billion in VAT under the OSS and IOSS schemes.

At the same time, the number of registered traders continues to grow steadily. By the end of 2024, over 170,000 businesses had signed up to the OSS and IOSS frameworks, with a notable increase of more than 20,000 new registrations in the Union OSS alone over the past year.

These figures set the stage for further simplifications to come with the VAT in the Digital Age (ViDA) package and the ongoing EU Customs Reform, to make the system even more efficient, fair, and fraud resistant.

ALCHEMPro News Desk (DS)