Brussels: New figures from Member States indicate that the European Union’s reformed VAT rules for e-commerce have successfully generated over £33 billion in revenue in 2024. This development, stemming from reforms initiated in 2021, showcases the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) systems. These systems facilitate businesses by allowing VAT declaration and remittance for cross-border sales through a single registration in one Member State.
According to Cyprus News Agency, the Union OSS alone accounted for over £24 billion in VAT declarations, while the non-Union OSS and the Import OSS contributed £2.8 billion and £6.3 billion respectively. These figures represent a 26% increase from the previous year, highlighting the continued adoption and effectiveness of these VAT systems. Since the reforms’ inception in mid-2021, nearly £88 billion has been collected under the OSS and IOSS frameworks.
Moreover, the number of registered traders using these systems has also seen a significant rise. By the end of 2024, more than 170,000 businesses had registered, with the Union OSS witnessing an increase of over 20,000 new registrations in the past year alone. These statistics set a robust foundation for further advancements, such as the VAT in the Digital Age (ViDA) package and the ongoing EU Customs Reform, aimed at enhancing efficiency, fairness, and fraud resistance in the system.
The full report, providing a comprehensive overview of the 2024 statistics concerning the EU’s VAT e-commerce schemes, is available for review.