EU VAT rules for e-commerce two years on: Updated revenue figures point again to a successful implementation

New figures indicate that Member States collected €20 billion in VAT revenues in 2022 via new systems introduced two years ago as part of efforts to ensure a more level playing field for all businesses. The launch of the expanded ‘One Stop Shop’ (OSS) and newly introduced ‘Import One Stop Shop’ (Import OSS) allows businesses to declare and transmit VAT in one Member State for all their sales of goods and services in the entire EU, as well as on imports of low-value goods into the EU. The new figures, using data provided by Member States themselves, again point to a successful implementation of the new rules. This positive trend had already emerged following an ex-post evaluation of the first 6 months of application of the e-commerce package.

Over 2022, Member States collected more than €17 billion via the expanded OSS portal which covers online sales within the EU. In addition to this, €2.5 billion in VAT revenues was collected on imports of e-commerce goods. 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 and which was highly susceptible to fraud.

Overall, VAT revenues collected via the new systems saw a 26% increase on 2021 figures. Almost 130,000 companies have registered to account for their VAT on online sales through the new framework, illustrating the enthusiasm with which traders have embraced the simplifications.

In December 2022, the Commission put forward the VAT in the Digital Age package. The Commission proposed to expand the OSS system to even more EU traders so that they can register for VAT only once in one Member State and take care of their VAT obligations on sales throughout the EU via the OSS. More information on the VAT in the Digital Age proposals are available here. Furthermore, as part of the customs reform package, the Commission proposed to further extend the use of the import OSS, allowing for VAT on all imported e-commerce goods to be declared, regardless of their value.