Last year member states of the European Union collected 20 billion Euros via new ecommerce VAT portals. In accordance with the European Commission, this indicates the success of new filing options.
Two years ago, the European commission launch a new system to ensure a more legitimate field for business. The newly introduced import One Stop Shop and expanded One Stop Shop enables the business to proclaim and tanas act VAT in one member state for all their goods and services sales within the European Union, besides for low-value goods imported into the European Union.
Single portal
By the One Stop Shop mechanism, sellers can electronically file returns through a single portal rather than registering individually in each country where they sell their products. This clarifies VAT registration and reporting procedure for sellers. The One Stop Shop system targets to promote VAT compliance and facilities across borders ecommerce within the European Union.
Through expanded OSS, member states collected more than 17 billion euros in 2022, which substitutes online sales in the European Union. Moreover, on imports of ecommerce goods 2.5 billion was collected in VAT revenues. According to the Director General of Taxation and Custom Union states, the figures involve the new VAT generated by the elimination of the VAT exemption that earlier applied to imports of low-value goods not greater than22 euros and which was highly vulnerable to fraud.
26% increase
Mostly, VAT revenues collected vis the new system rose by 265 in comparison with the 2021 figures. By using the new framework around 130000 companies have registered to account for their VAT on online sales, which indicates the positive comeback from the traders to the simplifications.
These new figures, based on data given by the member states, indicates the successful execution of the new VAT rules for European ecommerce, as highlighted by the the directorate.
