EU’s €33 Billion VAT Haul in 2024 Highlights Success of E-Commerce Reform

The European Union collected more than €33 billion in value-added tax (VAT) revenue in 2024 through its e-commerce VAT mechanisms, according to new figures released this week, reflecting the continued effectiveness of the VAT reform package introduced in 2021. The data underscores how the EU’s digital-first tax strategy is reshaping VAT collection and compliance for cross-border trade.

At the core of this success are the One Stop Shop (OSS) and Import One Stop Shop (IOSS) systems, which were created to streamline VAT compliance for businesses engaged in cross-border sales within the EU and for imports of low-value goods. These mechanisms allow companies to register in a single Member State to declare and remit VAT for transactions taking place across the entire EU, eliminating the need for multiple national registrations and filings.

According to the European Commission, these mechanisms are delivering tangible benefits in line with the goals of the 2021 reform package. “These latest figures are a clear sign that the 2021 reforms are delivering on their promise of simplifying compliance, supporting businesses, and ensuring fairer taxation,” the Commission said in a press release accompanying the new data.

The OSS and IOSS were launched as part of a broader EU strategy to modernise VAT rules, increase transparency, reduce administrative burdens for companies, and improve the collection of taxes in the context of rapidly growing digital commerce. The systems are particularly important in ensuring that VAT is collected on sales made by non-EU sellers and platforms, helping to level the playing field for EU-based businesses.

The Commission emphasized that the simplification tools are proving their worth by cutting through red tape and reducing the cost of compliance for companies operating across borders. “Today’s figures confirm that businesses continue to make full use of these simplifications, which reduce bureaucracy and compliance costs while ensuring the collection of VAT,” it added.

This latest update demonstrates not only strong uptake among businesses, but also the systems’ capacity to generate substantial public revenue. The more than €33 billion collected in 2024 serves as a strong indicator that the mechanisms have become central to the EU’s evolving tax infrastructure.

The OSS and IOSS represent a key component of the EU’s efforts to adapt tax rules to the realities of the digital age while fighting fraud and ensuring fair taxation. The consistent results seen since their implementation confirm that the reforms are functioning as intended and that businesses across the continent—and beyond—are increasingly relying on these tools as part of their standard compliance processes.

By allowing companies to report and pay VAT more easily across the 27-member bloc, the OSS and IOSS have not only improved the efficiency of tax collection but also reinforced the EU’s vision of a harmonized digital marketplace with fewer administrative obstacles and more equitable taxation practices.

By fLEXI tEAM