EU VAT E-commerce Reform Drives €33B in 2024 Revenue

The latest EU report on the impact of the 2021 E-commerce reform, based on 2024 statistical data, reveals a continuous increase in VAT revenue collected in 2024 through the EU's e-commerce VAT systems, as well as an increase in the number of VAT registrations through One-Stop Shop (OSS) schemes. 

The report includes all relevant data from the three OSS schemes: the Union OSS, the non-Union OSS, and the Import OSS (IOSS), providing details on the total amount of VAT declared in each scheme for 2024.

Key VAT Data From the Report

The report outlines that the businesses continue to make full use of OSS and IOSS schemes, which were developed to reduce bureaucracy and compliance costs, while ensuring VAT collection and revenue generation. A total of EUR 33 billion was declared through all three OSS schemes in 2024, where the Union scheme accounted for EUR 24 billion, the non-Union scheme for EUR 2.8 billion, and IOSS for EUR 6.3 billion.

The results show a year-to-year growth in total VAT declared under the OSS and IOSS schemes, from EUR 7.75 billion in 2021 to EUR 20.9 billion in 2022, EUR 26.3 billion in 2023, and EUR 33.1 billion in 2024, totaling approximately EUR 88.05 billion in VAT. However, it is essential to state that the 2021 report covers only 6 months of application. Nevertheless, the latest result shows a 26% increase compared to 2023.

Regarding the number of registered taxable persons, over 170.000 traders were registered under the OSS and IOSS schemes by the end of 2024. The number of traders registered under the Union OSS scheme grew by 16%, rising from 132,609 to 153,550. Both the non-Union scheme and IOSS reported a 6% growth. The number of intermediaries acting on behalf of non-EU taxable persons registered under the IOSS scheme increased by 10%.

Conclusion

All the reported results demonstrate that the EU VAT e-commerce reform is successful, with increasing business participation indicating the effectiveness of simplified VAT compliance mechanisms. 

The upcoming VAT in the Digital Age (ViDA) reforms, set in motion from 2025, and the announced alignment of customs and VAT treatment through the removal of the EUR 150 exemption threshold under EU Customs Reform and enhancing the IOSS mechanism, should contribute to further modernization and strengthening of the EU's VAT and customs system.

Source: European Commission, VATabout