Member states of the European Union collected 20 billion euros in VAT income final 12 months by new ecommerce VAT portals. In keeping with the European Fee, this demonstrates the success of the brand new submitting choices.
Two years in the past, the European Fee launched new techniques as a part of its efforts to make sure a extra stage enjoying discipline for companies. The expanded One Cease Store (OSS) and the newly launched Import One Cease Store (Import OSS) enable companies to declare and transmit VAT in a single member state for all their items and companies gross sales throughout the EU, in addition to for low-value items imported into the EU.
Single portal
Via the OSS mechanism, sellers can electronically file returns by way of a single portal as an alternative of registering individually in every nation the place they promote their merchandise. This simplifies VAT registration and reporting processes for sellers. The OSS system goals to advertise VAT compliance and facilitate cross-border ecommerce throughout the EU.
The OSS system goals to facilitate cross-border ecommerce
In 2022, member states collected over 17 billion euros by the expanded OSS portal, which covers on-line gross sales throughout the EU. Moreover, 2.5 billion euros in VAT revenues was collected on imports of ecommerce items. The Directorate-Common for Taxation and Customs Union states: “This determine consists of the brand new VAT revenues generated by the abolition of the VAT exemption that beforehand utilized to imports of low-value items not exceeding 22 euros and which was extremely vulnerable to fraud.”
26% improve
General, VAT revenues collected by the brand new techniques elevated by 26 p.c in comparison with 2021 figures. Practically 130,000 firms have registered to account for his or her VAT on on-line gross sales utilizing the brand new framework, indicating the constructive response from merchants to the simplifications.
Virtually 130,000 firms have registered
These new figures, based mostly on information supplied by member states themselves, display the profitable implementation of the brand new VAT guidelines for European ecommerce, as emphasised by the directorate.
