E-COMMERCE VAT REVENUES REACH RECORD HIGH AS EU SIMPLIFICATIONS DELIVER RESULTS
The latest figures released by EU Member States confirm the continued success of the EU’s reformed VAT rules for e-commerce, with over €33 billion in VAT collected in 2024 through the EU’s One Stop Shop (OSS) and Import One Stop Shop (IOSS) systems. The 2021 reforms, designed to streamline VAT compliance for cross-border e-commerce, are proving effective both in terms of revenue collection and business uptake.
The systems allow businesses to register in one Member State to declare and pay VAT for cross-border B2C sales across the EU, as well as for low-value imports. The 2024 data shows that businesses are making extensive use of these simplifications, which reduce administrative burdens while ensuring VAT is properly collected at destination.
In 2024, over €24 billion was reported via the Union OSS, €2.8 billion via the non-Union OSS, and €6.3 billion through the IOSS – a 26% increase compared to the previous year. Since their introduction in mid-2021, these schemes have enabled the collection of nearly €88 billion in VAT.
The number of participating businesses continues to rise, with over 170,000 traders registered by the end of 2024. In particular, the Union OSS alone saw an increase of more than 20,000 new registrations in the past year.
These figures demonstrate the value of the current framework in simplifying VAT compliance and levelling the playing field between EU and non-EU sellers. They also reinforce the Commission’s strategy under the VAT in the Digital Age (ViDA) initiative, which aim to further modernise and strengthen VAT collection mechanisms.
The Commission has published a detailed statistical report outlining the 2024 results and trends, which will serve as a reference point for upcoming policy developments.
Source: European Commission