On 3 September 2026, the European Commission released new figures demonstrating that the simplified VAT rules for cross-border e-commerce, introduced in July 2021, have generated more than €125 billion in VAT revenue for EU Member States. The data, compiled from national tax administrations, shows a steady increase in compliance and revenue collection under the One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes. The report highlights how the removal of the €22 VAT exemption threshold for low-value imports and the extension of the OSS to all cross-border B2C services and distance sales of goods have significantly reduced VAT fraud and administrative burdens for businesses.
Key Takeaways
- Revenue Surge: The €125 billion figure represents a substantial increase from previous years, confirming that the 2021 e-commerce VAT package successfully captured revenue from the rapidly growing digital economy.
- Simplified Compliance: Businesses increasingly use the OSS and IOSS portals, allowing them to declare and pay VAT for all EU sales via a single quarterly return in one Member State, reducing multi-jurisdictional filing obligations.
- Policy Implications: The Commission will use these results to assess further digitalization of VAT reporting, including potential expansion of real-time digital reporting requirements across the EU.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement