New distance selling single VAT filing figures highlight initial success
The EU Directorate-General for Taxation confirmed new and updated revenues from the EU e-commerce package reforms introduced from 1 July 2021. This included new data on the Import One Stop-Shop regime, plus first numbers from the One Stop-Shop distance selling return.
The figures released on 23 May 2022 covered the second half of 2021, and included:
- €6.8 billion from the new One Stop-Shop return which sellers and marketplaces can use instead of multiple VAT registrations
- over €2 billion in VAT revenues was collected on imports of low value consignments not exceeding €150, a rise since the initial IOSS revenue estimated in March 2022
- Almost €700 million represented new VAT revenue, equating to €1.4 billion annually, generated by the abolition of the VAT exemption that previously applied to imports of low value goods not exceeding €22 and which was highly susceptible to fraud.
- Separately, an estimated additional €270 million in VAT was collected as a direct result of the import OSS’s capacity to counter fraud and VAT losses due to undervaluation.
The next stage of reforms, VAT in the Digital Age, includes an extension of the EU Single VAT registrations via OSS to other transactions.
EU VAT in the Digital Age reforms
| EU VAT in the Digital Age | |
| 3 reforms to improve efficiency of VAT for all and reduce fraud | |
| 1. Single VAT registration in the EU; extension of OSS to B2C own stock movements | 2025 (?): Following the 1 July 2021 introduction of the One Stop-Shop (OSS), extended to cover movement of own stocks prior to cross-border B2C to reduce the foreign, non-resident VAT registrations & returns. Plus to movements of own stock with ending of 'call-off' stock burden |
| More details on Single VAT Registration in the EU | |
| Marketplaces deemed supplier for EU sellers | |
| EU IOSS mandated for marketplaces | |
| EU tackles misuse of IOSS numbers | |
| Quick fixes to existing e-commerce VAT rules | |
| Call-off stock VAT simplification ends | |
| Harmonisation of B2B Reverse Charge rules | |
| 2. Digital Reporting Requirements; e-invoicing | 2030 (?): Mandatory digital reporting of intra-community transactions; obligation to be able to issue and receive intra-community e-invoices; member states free to impose own e-invoicing or real-time reporting but most conform to EU e-invoice standard EN 16931 |
| Read more about EU Digital Reporting Requirements (DRR) | |
| E-invoices mandated intra-community supplies 2028 | |
| EC Sales lists replaced by Digital Reporting Requirements | |
| 2014 EU legal permissions for e-invoicing lifted | |
| 3. VAT treatment of the platform economy | 2026 (?): Travel & accommodation sharing platforms to become deemed supplier / liable to users' VAT. New definitions of the roles of providers, users and platforms to avoid double and no-taxation |
| Read more - Travel & accommodation platforms deemed suppliers for EU VAT | |
