2023 data reveals €26 billion raised from OSS & IOSS 150,000 businesses
The 2023 evaluation (published 14 October 2024) of the VAT e-commerce package, particularly focusing on the One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) schemes, reflects the substantial progress made in streamlining VAT collection across the EU’s e-commerce landscape. The joint pan-EU VAT reporting schemes raised over €26 billion in 2023 compared to €19 billion in 2022. Over 150,000 businesses are now registered with the reporting schemes.
The OSS/IOSS system was introduced on July 1, 2021, aiming to simplify VAT compliance for cross-border e-commerce activities by eliminating the need for multiple VAT registrations across Member States. By centralizing VAT reporting through a single interface in the trader’s country of establishment, the reforms have not only eased administrative burdens but also fostered higher compliance among e-commerce traders.
€26 billion in VAT from OSS and IOSS returns
In 2023, the total VAT declared through the three schemes—Union OSS, non-Union OSS, and IOSS—exceeded EUR 26 billion, demonstrating a robust uptake of the e-commerce package reforms. The Union OSS accounted for EUR 20 billion of this total, while the non-Union OSS and IOSS accounted for EUR 2.4 billion and EUR 3.9 billion, respectively. These figures underscore the growing reliance on OSS/IOSS among e-commerce traders, marking a significant shift toward simplified VAT compliance.
When comparing year-on-year data, the VAT declared through the OSS schemes has shown steady growth since their introduction. In 2021, which only covered six months of application, EUR 8 billion was declared across all three schemes. By 2022, this figure rose to EUR 19.5 billion, representing a 26% increase from the extrapolated 2021 figures. The upward trend continued in 2023, with a further 35% increase, bringing the total declared VAT to EUR 26.3 billion. This consistent growth highlights the effectiveness of the e-commerce package in modernizing VAT collection and reducing complexities for both businesses and tax administrations.
Over 150,000 sellers and marketplaces registered on OSS and IOSS
Registration data further supports the package’s success. As of December 31, 2023, over 150,000 traders were registered across the three schemes, demonstrating the widespread appeal of these VAT simplifications. The Union OSS saw a notable increase in registrations, growing from 113,794 traders at the end of 2022 to 132,609 by the end of 2023—a 16% increase. The non-Union OSS and IOSS also experienced significant growth, with registrations rising by 22% and 19%, respectively. These figures indicate a strong market response to the administrative efficiencies offered by the e-commerce package, as traders increasingly leverage the OSS to manage their VAT obligations centrally, without the need to register in each Member State where their goods or services are sold.
The continued success of the OSS/IOSS framework is not only beneficial for traders but also for Member State tax authorities. The single registration process reduces the need for individual VAT registrations in multiple jurisdictions, thus lowering the administrative workload for national tax authorities. Traders can now fulfill their VAT obligations through their home Member State, facilitating compliance across the EU.
Overall, the VAT e-commerce package has proven highly effective in addressing the challenges of VAT compliance in the growing e-commerce sector. However, the European Commission acknowledges that further refinements may be necessary to optimize the system as the digital economy evolves. Nonetheless, the increase in VAT revenues and registrations in 2023 underscores the positive impact of these reforms on both traders and tax administrations, confirming the OSS/IOSS framework as a key tool in the EU’s VAT strategy for e-commerce.
